|
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Date of report (Date of earliest event reported): April 17, 2013
|
||
Horizon Bancorp
|
||
(Exact Name of Registrant as Specified in Its Charter)
|
||
Indiana
|
000-10792
|
35-1562417
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
515 Franklin Square, Michigan City, Indiana
|
46360
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
(219) 879-0211
|
||
(Registrant’s Telephone Number, Including Area Code)
|
||
N/A
|
||
(Former Name or Former Address, if Changed Since Last Report)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(d) Exhibits
|
|||
Exhibit No.
|
Description
|
||
99.1
|
Press Release issued April 17, 2013
|
Date: April 17, 2013
|
Horizon Bancorp
|
|
By:
|
/s/ Mark E. Secor | |
Mark E. Secor,
|
||
Chief Financial Officer
|
Exhibit No.
|
Description
|
Location
|
||
99.1
|
Press Release issued April 17, 2013
|
Attached
|
·
|
First quarter 2013 net income was $5.3 million or $.58 diluted earnings per share, the highest quarterly net income in the Company’s history.
|
·
|
Net interest income, before provisions for loan losses, for the first three months of 2013 was $16.0 million compared with $13.2 million for the same period in the prior year.
|
·
|
Non-interest income rose to $7.5 million in first quarter 2013 compared with $5.1 million in first quarter 2012, primarily reflecting a significant increase in gain on sale of loans, and increased fee income from fiduciary activities.
|
·
|
Return on average assets was 1.23% for the first quarter of 2013.
|
·
|
Return on average common equity was 14.11% for the first quarter of 2013.
|
·
|
Total loans decreased $100.9 million during the quarter to $1.1 billion at March 31, 2013 as mortgage warehouse loans decreased $107.8 million during the same period.
|
·
|
Total deposits increased $20.9 million during the quarter to $1.3 billion at March 31, 2013.
|
·
|
Total borrowings decreased $136.9 million during the quarter to $208.9 million as the short-term funding needed for mortgage warehouse loans declined and deposits increased.
|
·
|
Horizon’s tangible book value per share rose to $14.64 at March 31, 2013, compared to $14.24 at March 31, 2012.
|
·
|
Horizon Bank’s capital ratios, including Tier 1 Capital to Average Assets of 8.82% and Total Capital to Risk Weighted Assets of 13.58% as of March 31, 2013, continue to be well above the regulatory standards for well-capitalized banks.
|
Contact:
|
Horizon Bancorp
|
Mark E. Secor
|
|
Chief Financial Officer
|
|
(219) 873-2611
|
|
Fax: (219) 874-9280
|
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2013
|
2012
|
2012
|
2012
|
2012
|
||||||||||||||||
Balance sheet:
|
||||||||||||||||||||
Total assets
|
$ | 1,734,250 | $ | 1,848,227 | $ | 1,846,776 | $ | 1,563,265 | $ | 1,546,831 | ||||||||||
Investment securities
|
482,086 | 482,801 | 503,804 | 441,715 | 440,601 | |||||||||||||||
Commercial loans
|
473,102 | 460,471 | 447,414 | 356,549 | 350,463 | |||||||||||||||
Mortgage warehouse loans
|
143,609 | 251,448 | 244,233 | 215,478 | 213,152 | |||||||||||||||
Residential mortgage loans
|
191,347 | 189,714 | 176,553 | 156,675 | 155,550 | |||||||||||||||
Consumer loans
|
281,710 | 289,084 | 286,848 | 268,437 | 269,388 | |||||||||||||||
Earning assets
|
1,594,292 | 1,700,595 | 1,690,348 | 1,460,544 | 1,451,746 | |||||||||||||||
Non-interest bearing deposit accounts
|
217,197 | 209,200 | 211,935 | 136,979 | 138,618 | |||||||||||||||
Interest bearing transaction accounts
|
777,973 | 769,822 | 767,202 | 634,907 | 641,128 | |||||||||||||||
Time deposits
|
319,893 | 315,131 | 327,834 | 273,903 | 284,875 | |||||||||||||||
Borrowings
|
208,899 | 345,764 | 333,150 | 339,880 | 310,889 | |||||||||||||||
Subordinated debentures
|
32,370 | 32,331 | 32,282 | 30,722 | 30,699 | |||||||||||||||
Common stockholders' equity
|
149,777 | 146,468 | 143,362 | 118,112 | 113,738 | |||||||||||||||
Total stockholders’ equity
|
162,277 | 158,968 | 155,862 | 130,612 | 126,238 | |||||||||||||||
Income statement:
|
Three months ended
|
|||||||||||||||||||
Net interest income
|
$ | 16,010 | $ | 17,003 | $ | 14,999 | $ | 13,006 | $ | 13,198 | ||||||||||
Provision for loan losses
|
2,084 | 1,715 | 1,041 | 209 | 559 | |||||||||||||||
Other income
|
7,460 | 7,924 | 7,710 | 6,555 | 5,142 | |||||||||||||||
Other expenses
|
13,979 | 15,844 | 14,840 | 12,180 | 11,160 | |||||||||||||||
Income tax expense
|
2,096 | 2,198 | 1,978 | 2,262 | 2,008 | |||||||||||||||
Net income
|
5,311 | 5,170 | 4,850 | 4,910 | 4,613 | |||||||||||||||
Preferred stock dividend
|
(146 | ) | (156 | ) | (63 | ) | (106 | ) | (156 | ) | ||||||||||
Net income available to common shareholders
|
$ | 5,165 | $ | 5,014 | $ | 4,787 | $ | 4,804 | $ | 4,457 | ||||||||||
Per share data:
|
||||||||||||||||||||
Basic earnings per share
|
$ | 0.60 | $ | 0.58 | $ | 0.56 | $ | 0.65 | $ | 0.60 | ||||||||||
Diluted earnings per share
|
0.58 | 0.56 | 0.54 | 0.62 | 0.59 | |||||||||||||||
Cash dividends declared per common share
|
0.10 | 0.10 | 0.10 | 0.09 | 0.09 | |||||||||||||||
Book value per common share
|
17.38 | 17.00 | 16.64 | 15.88 | 15.33 | |||||||||||||||
Tangible book value per common share
|
14.64 | 14.23 | 13.85 | 14.81 | 14.24 | |||||||||||||||
Market value - high
|
20.87 | 19.68 | 19.08 | 17.73 | 12.33 | |||||||||||||||
Market value - low
|
$ | 19.10 | $ | 16.54 | $ | 17.67 | $ | 11.76 | $ | 11.53 | ||||||||||
Weighted average shares outstanding - Basic
|
8,617,466 | 8,617,466 | 8,503,475 | 7,434,537 | 7,422,860 | |||||||||||||||
Weighted average shares outstanding - Diluted
|
8,980,655 | 8,964,315 | 8,838,659 | 7,728,519 | 7,598,490 | |||||||||||||||
Key ratios:
|
||||||||||||||||||||
Return on average assets
|
1.23 | % | 1.13 | % | 1.09 | % | 1.31 | % | 1.23 | % | ||||||||||
Return on average common stockholders' equity
|
14.11 | 13.70 | 13.96 | 16.43 | 15.90 | |||||||||||||||
Net interest margin
|
4.10 | 4.16 | 3.79 | 3.79 | 3.87 | |||||||||||||||
Loan loss reserve to total loans
|
1.78 | 1.52 | 1.58 | 1.83 | 1.94 | |||||||||||||||
Non-performing loans to loans
|
2.16 | 1.97 | 2.08 | 2.07 | 2.11 | |||||||||||||||
Average equity to average assets
|
9.16 | 8.71 | 8.45 | 8.61 | 8.33 | |||||||||||||||
Bank only capital ratios:
|
||||||||||||||||||||
Tier 1 capital to average assets
|
8.82 | 8.22 | 8.57 | 8.74 | 8.53 | |||||||||||||||
Tier 1 capital to risk weighted assets
|
12.32 | 11.17 | 11.58 | 12.01 | 11.82 | |||||||||||||||
Total capital to risk weighted assets
|
13.58 | 12.42 | 12.83 | 13.27 | 13.08 | |||||||||||||||
Loan data:
|
||||||||||||||||||||
Substandard loans
|
$ | 52,180 | $ | 52,114 | $ | 57,079 | $ | 35,634 | $ | 46,643 | ||||||||||
30 to 89 days delinquent
|
5,716 | 6,743 | 8,351 | 3,773 | 2,932 | |||||||||||||||
90 days and greater delinquent - accruing interest
|
$ | 2 | $ | 54 | $ | 109 | $ | 13 | $ | 28 | ||||||||||
Trouble debt restructures - accruing interest
|
4,636 | 3,702 | 3,356 | 3,092 | 3,188 | |||||||||||||||
Trouble debt restructures - non-accrual
|
6,785 | 6,649 | 5,062 | 2,786 | 2,439 | |||||||||||||||
Non-accrual loans
|
12,293 | 13,374 | 15,887 | 14,925 | 15,451 | |||||||||||||||
Total non-performing loans
|
$ | 23,716 | $ | 23,779 | $ | 24,414 | $ | 20,816 | $ | 21,106 |
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2013
|
2012
|
2012
|
2012
|
2012
|
||||||||||||||||
Commercial
|
$ | 9,166 | $ | 7,771 | $ | 8,058 | $ | 7,766 | $ | 8,435 | ||||||||||
Real estate
|
3,477 | 3,204 | 2,974 | 2,946 | 3,025 | |||||||||||||||
Mortgage warehousing
|
1,603 | 1,705 | 1,716 | 1,695 | 1,694 | |||||||||||||||
Consumer
|
5,319 | 5,590 | 5,820 | 5,967 | 6,258 | |||||||||||||||
Unallocated
|
- | - | - | - | - | |||||||||||||||
Total
|
$ | 19,565 | $ | 18,270 | $ | 18,568 | $ | 18,374 | $ | 19,412 |
Three months ended
|
||||||||||||||||||||
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2013
|
2012
|
2012
|
2012
|
2012
|
||||||||||||||||
Commercial
|
$ | 342 | $ | 1,326 | $ | 334 | $ | 278 | $ | (332 | ) | |||||||||
Real estate
|
141 | 143 | 205 | 113 | 59 | |||||||||||||||
Mortgage warehousing
|
- | - | - | - | - | |||||||||||||||
Consumer
|
305 | 544 | 308 | 856 | 302 | |||||||||||||||
Total
|
$ | 788 | $ | 2,013 | $ | 847 | $ | 1,247 | $ | 29 |
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2013
|
2012
|
2012
|
2012
|
2012
|
||||||||||||||||
Commercial
|
$ | 10,054 | $ | 10,693 | $ | 11,957 | $ | 8,796 | $ | 9,035 | ||||||||||
Real estate
|
8,945 | 9,155 | 8,833 | 8,595 | 8,669 | |||||||||||||||
Mortgage warehousing
|
- | - | - | - | - | |||||||||||||||
Consumer
|
4,717 | 3,931 | 3,624 | 3,425 | 3,402 | |||||||||||||||
Total
|
$ | 23,716 | $ | 23,779 | $ | 24,414 | $ | 20,816 | $ | 21,106 | ||||||||||
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2013
|
2012
|
2012
|
2012
|
2012
|
||||||||||||||||
Commercial
|
$ | 957 | $ | 1,337 | $ | 1,867 | $ | 688 | $ | 94 | ||||||||||
Real estate
|
745 | 1,228 | 716 | 338 | 709 | |||||||||||||||
Mortgage warehousing
|
- | - | - | - | - | |||||||||||||||
Consumer
|
52 | 11 | 72 | 43 | 86 | |||||||||||||||
Total
|
$ | 1,754 | $ | 2,576 | $ | 2,655 | $ | 1,069 | $ | 889 |
Three Months Ended March 31, 2013
|
Three Months Ended March 31, 2012
|
|||||||||||||||||||||||
Average Balance
|
Interest
|
Average Rate
|
Average Balance
|
Interest
|
Average Rate
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||
Federal funds sold
|
$ | 12,639 | $ | 8 | 0.26 | % | $ | 4,782 | $ | 3 | 0.25 | % | ||||||||||||
Interest-earning deposits
|
7,423 | 2 | 0.11 | % | 1,971 | 1 | 0.20 | % | ||||||||||||||||
Investment securities - taxable
|
371,311 | 2,012 | 2.20 | % | 344,144 | 2,310 | 2.70 | % | ||||||||||||||||
Investment securities - non-taxable (1)
|
120,652 | 967 | 4.33 | % | 107,892 | 980 | 5.07 | % | ||||||||||||||||
Loans receivable (2)(3)(4)
|
1,105,843 | 16,440 | 6.03 | % | 952,236 | 13,532 | 5.72 | % | ||||||||||||||||
Total interest-earning assets (1)
|
1,617,868 | 19,429 | 4.95 | % | 1,411,025 | 16,826 | 4.91 | % | ||||||||||||||||
Noninterest-earning assets
|
||||||||||||||||||||||||
Cash and due from banks
|
23,745 | 15,785 | ||||||||||||||||||||||
Allowance for loan losses
|
(18,425 | ) | (19,427 | ) | ||||||||||||||||||||
Other assets
|
134,623 | 96,543 | ||||||||||||||||||||||
$ | 1,757,811 | $ | 1,503,926 | |||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 1,102,599 | $ | 1,480 | 0.54 | % | $ | 909,314 | $ | 1,639 | 0.72 | % | ||||||||||||
Borrowings
|
241,383 | 1,448 | 2.43 | % | 292,616 | 1,519 | 2.09 | % | ||||||||||||||||
Subordinated debentures
|
32,370 | 491 | 6.15 | % | 31,446 | 470 | 6.01 | % | ||||||||||||||||
Total interest-bearing liabilities
|
1,376,352 | 3,419 | 1.01 | % | 1,233,376 | 3,628 | 1.18 | % | ||||||||||||||||
Noninterest-bearing liabilities
|
||||||||||||||||||||||||
Demand deposits
|
202,403 | 131,778 | ||||||||||||||||||||||
Accrued interest payable and other liabilities
|
18,082 | 13,510 | ||||||||||||||||||||||
Shareholders' equity
|
160,974 | 125,262 | ||||||||||||||||||||||
$ | 1,757,811 | $ | 1,503,926 | |||||||||||||||||||||
Net interest income/spread
|
$ | 16,010 | 3.95 | % | $ | 13,198 | 3.73 | % | ||||||||||||||||
Net interest income as a percent of average interest earning assets (1)
|
4.10 | % | 3.87 | % |
(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.
|
(4)
|
Loan fees and late fees included in interest on loans.
|
March 31
|
December 31
|
|||||||
2013
|
2012
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 27,053 | $ | 30,735 | ||||
Investment securities, available for sale
|
479,976 | 482,801 | ||||||
Investment securities, held to maturity
|
2,110 | - | ||||||
Loans held for sale
|
9,105 | 13,744 | ||||||
Loans, net of allowance for loan losses of $19,565 and $18,270
|
1,070,203 | 1,172,447 | ||||||
Premises and equipment
|
42,431 | 42,184 | ||||||
Federal Reserve and Federal Home Loan Bank stock
|
13,333 | 13,333 | ||||||
Goodwill
|
19,748 | 19,748 | ||||||
Other intangible assets
|
3,857 | 4,048 | ||||||
Interest receivable
|
7,549 | 7,716 | ||||||
Cash value life insurance
|
35,444 | 35,192 | ||||||
Other assets
|
23,441 | 26,279 | ||||||
Total assets
|
$ | 1,734,250 | $ | 1,848,227 | ||||
Liabilities
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$ | 217,197 | $ | 209,200 | ||||
Interest bearing
|
1,097,866 | 1,084,953 | ||||||
Total deposits
|
1,315,063 | 1,294,153 | ||||||
Borrowings
|
208,899 | 345,764 | ||||||
Subordinated debentures
|
32,370 | 32,331 | ||||||
Interest payable
|
552 | 560 | ||||||
Other liabilities
|
15,089 | 16,451 | ||||||
Total liabilities
|
1,571,973 | 1,689,259 | ||||||
Commitments and contingent liabilities
|
||||||||
Stockholders’ Equity
|
||||||||
Preferred stock, $.01 par value, $1,000 liquidation value
|
||||||||
Authorized, 1,000,000 Series B shares
|
||||||||
Issued 12,500 and 12,500 shares
|
12,500 | 12,500 | ||||||
Common stock, no par value
|
||||||||
Authorized, 22,500,000 shares
|
||||||||
Issued, 8,693,471 and 8,693,471 shares
|
||||||||
Outstanding, 8,617,466 and 8,617,466 shares
|
- | - | ||||||
Additional paid-in capital
|
32,037 | 31,965 | ||||||
Retained earnings
|
109,700 | 105,402 | ||||||
Accumulated other comprehensive income
|
8,040 | 9,101 | ||||||
Total stockholders’ equity
|
162,277 | 158,968 | ||||||
Total liabilities and stockholders’ equity
|
$ | 1,734,250 | $ | 1,848,227 |
Three Months Ended March 31
|
||||||||
2013
|
2012
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Interest Income
|
||||||||
Loans receivable
|
$ | 16,440 | $ | 13,532 | ||||
Investment securities
|
||||||||
Taxable
|
2,022 | 2,314 | ||||||
Tax exempt
|
967 | 980 | ||||||
Total interest income
|
19,429 | 16,826 | ||||||
Interest Expense
|
||||||||
Deposits
|
1,480 | 1,639 | ||||||
Borrowed funds
|
1,448 | 1,519 | ||||||
Subordinated debentures
|
491 | 470 | ||||||
Total interest expense
|
3,419 | 3,628 | ||||||
Net Interest Income
|
16,010 | 13,198 | ||||||
Provision for loan losses
|
2,084 | 559 | ||||||
Net Interest Income after Provision for Loan Losses
|
13,926 | 12,639 | ||||||
Other Income
|
||||||||
Service charges on deposit accounts
|
913 | 712 | ||||||
Wire transfer fees
|
190 | 182 | ||||||
Interchange fees
|
866 | 628 | ||||||
Fiduciary activities
|
1,140 | 975 | ||||||
Gain on sale of investment securities
|
368 | - | ||||||
Gain on sale of mortgage loans
|
3,106 | 2,274 | ||||||
Mortgage servicing income net of impairment
|
163 | 90 | ||||||
Increase in cash value of bank owned life insurance
|
252 | 225 | ||||||
Other income
|
462 | 56 | ||||||
Total other income
|
7,460 | 5,142 | ||||||
Other Expenses
|
||||||||
Salaries and employee benefits
|
7,504 | 5,963 | ||||||
Net occupancy expenses
|
1,311 | 1,054 | ||||||
Data processing
|
600 | 526 | ||||||
Professional fees
|
499 | 534 | ||||||
Outside services and consultants
|
712 | 471 | ||||||
Loan expense
|
1,114 | 702 | ||||||
FDIC insurance expense
|
283 | 257 | ||||||
Other losses
|
(72 | ) | 30 | |||||
Other expenses
|
2,028 | 1,623 | ||||||
Total other expenses
|
13,979 | 11,160 | ||||||
Income Before Income Tax
|
7,407 | 6,621 | ||||||
Income tax expense
|
2,096 | 2,008 | ||||||
Net Income
|
5,311 | 4,613 | ||||||
Preferred stock dividend and discount accretion
|
(146 | ) | (156 | ) | ||||
Net Income Available to Common Shareholders
|
$ | 5,165 | $ | 4,457 | ||||
Basic Earnings Per Share
|
$ | 0.60 | $ | 0.60 | ||||
Diluted Earnings Per Share
|
0.58 | 0.59 |