 |
Exhibit 99.1
|
Contact: Mark E. Secor
Chief Financial Officer
Phone: (219) 873-2611
Fax: (219) 874-9280
Date: July 27, 2016
FOR IMMEDIATE RELEASE
Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
Michigan City, Indiana (NASDAQ GS: HBNC) – Horizon Bancorp today announced its unaudited financial results for the three and six-month periods ended June 30, 2016.
SUMMARY:
| · | Net income for the second quarter of 2016 was $6.3 million or $.52 diluted earnings per share. |
| · | Excluding acquisition-related expenses and gain on sale of investment securities, net income for the second quarter of 2016 increased 38.9% compared to the same period of 2015 to $7.2 million or $.59 diluted earnings per share. |
| · | Net income for the first six months of 2016 was $11.7 million or $.96 diluted earnings per share. |
| · | Excluding acquisition-related expenses, gain on sale of investment securities and the death benefit on bank owned life insurance, net income for the first six months of 2016 increased 24.1% compared to the same period of 2015 to $13.0 million or $1.07 diluted earnings per share. |
| · | Total loans, excluding mortgage warehouse loans, increased 8.1% on an annualized basis during the second quarter of 2016. |
| · | Net interest income for the first six months of 2016 increased 17.0% or $5.9 million compared to the same period in 2015. |
| · | Net interest margin, excluding the impact of acquisitions (“core net interest margin”), was 3.42% for the second quarter of 2016 compared to 3.36% for the prior quarter and 3.51% for the same period in 2015. |
| · | Non-interest income for the first six months of 2016 increased 24.4% or $3.5 million compared to the same period in 2015. |
| · | Horizon’s tangible book value per share rose to $17.17 at June 30, 2016, compared to $16.53 at December 31, 2015 and $17.06 at June 30, 2015. |
| · | Horizon entered Fort Wayne, Indiana in the second quarter of 2016 by establishing a loan production team that will focus on commercial lending in Indiana’s second largest city. |
| · | On June 1, 2016, Horizon closed the acquisition of Kosciusko Financial, Inc. (“Kosciusko”) and its wholly-owned subsidiary, Farmers State Bank, headquartered in Mentone, Indiana. |
| · | On July 18, 2016, Horizon closed the acquisition of LaPorte Bancorp, Inc. (“LaPorte |
-MORE-
Pg. 2 cont. Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
Bancorp”) and its wholly-owned subsidiary, The LaPorte Savings Bank, headquartered in La
Porte, Indiana. LaPorte Bancorp’s results are not included in Horizon’s June 30, 2016 financial results.
| · | On July 12, 2016, Horizon announced the pending acquisition of CNB Bancorp and its wholly-owned subsidiary, The Central National Bank and Trust Company, headquartered in Attica, Indiana. |
Craig Dwight, Chairman and CEO, commented: “Horizon’s 2016 second quarter and year-to-date earnings illustrate, once again, our balanced and diversified revenue streams producing strong results. Core net income, excluding acquisition-related expenses, gain on sale of investment securities and the death benefit on bank owned life insurance, was $7.2 million for the second quarter and $13.0 million for the first six months of 2016. The increase in core net income translated to solid growth in Horizon’s core diluted earnings per share for both the second quarter and the first six months of 2016 compared to 2015.”
|
Non-GAAP Reconciliation of Net Income and Diluted Earnings per Share
|
||||||||||||||||
|
(Dollars in Thousands Except per Share Data, Unaudited)
|
||||||||||||||||
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
|||||||||||||||
|
Non-GAAP Reconciliation of Net Income
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
Net income as reported
|
$
|
6,326
|
$
|
4,728
|
$
|
11,707
|
$
|
10,086
|
||||||||
|
Merger expenses
|
1,881
|
570
|
2,520
|
716
|
||||||||||||
|
Tax effect
|
(531
|
)
|
(132
|
)
|
(696
|
)
|
(183
|
)
|
||||||||
|
Net income excluding merger expenses
|
7,676
|
5,166
|
13,531
|
10,619
|
||||||||||||
|
Gain on sale of investment securities
|
(767
|
)
|
-
|
(875
|
)
|
(124
|
)
|
|||||||||
|
Tax effect
|
268
|
-
|
306
|
43
|
||||||||||||
|
Net income excluding gain on sale of investment securities
|
7,177
|
5,166
|
12,962
|
10,538
|
||||||||||||
|
Death benefit on bank owned life insurance ("BOLI")
|
-
|
-
|
-
|
(145
|
)
|
|||||||||||
|
Tax effect
|
-
|
-
|
-
|
51
|
||||||||||||
|
Net income excluding death benefit on BOLI
|
7,177
|
5,166
|
12,962
|
10,444
|
||||||||||||
|
Acquisition-related purchase accounting adjustments ("PAUs")
|
(397
|
)
|
(797
|
)
|
(944
|
)
|
(1,880
|
)
|
||||||||
|
Tax effect
|
139
|
279
|
330
|
658
|
||||||||||||
|
Net income excluding PAUs
|
$
|
6,919
|
$
|
4,648
|
$
|
12,348
|
$
|
9,222
|
||||||||
|
Non-GAAP Reconciliation of Diluted Earnings per Share
|
||||||||||||||||
|
Diluted earnings per share as reported
|
$
|
0.52
|
$
|
0.49
|
$
|
0.96
|
$
|
1.04
|
||||||||
|
Merger expenses
|
0.15
|
0.06
|
0.21
|
0.07
|
||||||||||||
|
Tax effect
|
(0.04
|
)
|
(0.01
|
)
|
(0.06
|
)
|
(0.02
|
)
|
||||||||
|
Diluted earnings per share excluding merger expenses
|
0.63
|
0.54
|
1.11
|
1.09
|
||||||||||||
|
Gain on sale of investment securities
|
(0.06
|
)
|
-
|
(0.07
|
)
|
(0.01
|
)
|
|||||||||
|
Tax effect
|
0.02
|
-
|
0.03
|
0.00
|
||||||||||||
|
Net income excluding gain on sale of investment securities
|
0.59
|
0.54
|
1.07
|
1.09
|
||||||||||||
|
Death benefit on BOLI
|
-
|
-
|
-
|
(0.02
|
)
|
|||||||||||
|
Tax effect
|
-
|
-
|
-
|
0.01
|
||||||||||||
|
Net income excluding death benefit on BOLI
|
0.59
|
0.54
|
1.07
|
1.08
|
||||||||||||
|
Acquisition-related PAUs
|
(0.03
|
)
|
(0.08
|
)
|
(0.09
|
)
|
(0.20
|
)
|
||||||||
|
Tax effect
|
0.01
|
0.03
|
0.03
|
0.07
|
||||||||||||
|
Diluted earnings per share excluding PAUs
|
$
|
0.57
|
$
|
0.49
|
$
|
1.01
|
$
|
0.95
|
||||||||
-MORE-
Pg. 3 cont. Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
Mr. Dwight continued, “The second quarter of 2016 was highlighted by strong contributions from our retail and mortgage warehouse operations, an increase in net interest margin over the linked quarter, fee income growth and continued improvement in asset quality. Additionally, Horizon continued to build-out our existing growth markets and entered Fort Wayne, Indiana with a loan production team that will focus on developing our commercial presence in Indiana’s second largest city.”
|
Loan Growth by Type, Excluding Acquired Loans
|
||||||||||||||||||||||||
|
Three Months Ended June 30, 2016
|
||||||||||||||||||||||||
|
(Dollars in Thousands, Unaudited)
|
||||||||||||||||||||||||
|
Excluding Acquired Loans
|
||||||||||||||||||||||||
|
Acquired
|
||||||||||||||||||||||||
|
June 30
|
March 31
|
Amount
|
Kosciusko
|
Amount
|
Percent
|
|||||||||||||||||||
|
2016
|
2016
|
Change
|
Loans
|
Change
|
Change
|
|||||||||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||
|
Commercial loans
|
$
|
874,580
|
$
|
797,754
|
$
|
76,826
|
$
|
(67,310
|
)
|
$
|
9,516
|
1.2
|
%
|
|||||||||||
|
Residential mortgage loans
|
493,626
|
442,806
|
50,820
|
(26,244
|
)
|
24,576
|
5.6
|
%
|
||||||||||||||||
|
Consumer loans
|
363,920
|
359,636
|
4,284
|
(6,319
|
)
|
(2,035
|
)
|
-0.6
|
%
|
|||||||||||||||
|
Subtotal
|
1,732,126
|
1,600,196
|
131,930
|
(99,873
|
)
|
32,057
|
2.0
|
%
|
||||||||||||||||
|
Held for sale loans
|
7,812
|
3,168
|
4,644
|
-
|
4,644
|
146.6
|
%
|
|||||||||||||||||
|
Mortgage warehouse loans
|
205,699
|
119,876
|
85,823
|
-
|
85,823
|
71.6
|
%
|
|||||||||||||||||
|
Total loans
|
$
|
1,945,637
|
$
|
1,723,240
|
$
|
222,397
|
$
|
(99,873
|
)
|
$
|
122,524
|
7.1
|
%
|
|||||||||||
|
Loan Growth by Type, Excluding Acquired Loans
|
||||||||||||||||||||||||
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||||
|
(Dollars in Thousands)
|
||||||||||||||||||||||||
|
Excluding Acquired Loans
|
||||||||||||||||||||||||
|
Acquired
|
||||||||||||||||||||||||
|
June 30
|
December 31
|
Amount
|
Kosciusko
|
Amount
|
Percent
|
|||||||||||||||||||
|
2016
|
2015
|
Change
|
Loans
|
Change
|
Change
|
|||||||||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||
|
Commercial loans
|
$
|
874,580
|
$
|
804,995
|
$
|
69,585
|
$
|
(67,310
|
)
|
$
|
2,275
|
0.3
|
%
|
|||||||||||
|
Residential mortgage loans
|
493,626
|
437,144
|
56,482
|
(26,244
|
)
|
30,238
|
6.9
|
%
|
||||||||||||||||
|
Consumer loans
|
363,920
|
362,300
|
1,620
|
(6,319
|
)
|
(4,699
|
)
|
-1.3
|
%
|
|||||||||||||||
|
Subtotal
|
1,732,126
|
1,604,439
|
127,687
|
(99,873
|
)
|
27,814
|
1.7
|
%
|
||||||||||||||||
|
Held for sale loans
|
7,812
|
7,917
|
(105
|
)
|
-
|
(105
|
)
|
-1.3
|
%
|
|||||||||||||||
|
Mortgage warehouse loans
|
205,699
|
144,692
|
61,007
|
-
|
61,007
|
42.2
|
%
|
|||||||||||||||||
|
Total loans
|
$
|
1,945,637
|
$
|
1,757,048
|
$
|
188,589
|
$
|
(99,873
|
)
|
$
|
88,716
|
5.0
|
%
|
|||||||||||
“An improved mix of higher yielding interest earning assets and low cost deposits and a $415,000 prepayment penalty received on an investment security during the second quarter of 2016 resulted in an increase in net interest margin from the prior quarter,” Mr. Dwight commented. Horizon’s core
-MORE-
Pg. 4 cont. Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
net interest margin, excluding income from acquisition-related purchase accounting adjustments, increased 6 basis points from the linked quarter to 3.42% and was down 9 basis points in the first six months of 2016 compared to the same period of 2015.
|
Non-GAAP Reconciliation of Net Interest Margin
|
||||||||||||||||||||
|
(Dollar in Thousands)
|
||||||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
|
June 30
|
March 31
|
June 30
|
June 30
|
|||||||||||||||||
|
|
2016
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||
|
Net Interest Margin As Reported
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Net interest income
|
$
|
20,869
|
$
|
19,774
|
$
|
17,850
|
$
|
40,643
|
$
|
34,736
|
||||||||||
|
Average interest-earning assets
|
2,471,354
|
2,367,250
|
2,008,191
|
2,406,468
|
1,954,287
|
|||||||||||||||
|
Net interest income as a percent of average interest-earning assets ("Net Interest Margin")
|
3.48
|
%
|
3.45
|
%
|
3.67
|
%
|
3.47
|
%
|
3.68
|
%
|
||||||||||
|
Impact of Acquisitions
|
||||||||||||||||||||
|
Interest income from acquisition-related purchase accounting adjustments
|
$
|
(397
|
)
|
$
|
(547
|
)
|
$
|
(797
|
)
|
$
|
(944
|
)
|
$
|
(1,880
|
)
|
|||||
|
Excluding Impact of Acquisitions
|
||||||||||||||||||||
|
Net interest income
|
$
|
20,472
|
$
|
19,227
|
$
|
17,053
|
$
|
39,699
|
$
|
32,856
|
||||||||||
|
Average interest-earning assets
|
2,471,354
|
2,367,250
|
2,008,191
|
2,406,468
|
1,954,287
|
|||||||||||||||
|
Core Net Interest Margin
|
3.42
|
%
|
3.36
|
%
|
3.51
|
%
|
3.40
|
%
|
3.49
|
%
|
||||||||||
Dwight noted, “Asset quality continued to improve during the second quarter of 2016 as non-performing loans to total loans declined to 0.68% at June 30, 2016 from 0.95% at December 31, 2015. Total non-performing loans decreased $3.5 million during the first half of 2016, while commercial loans saw the largest improvement in non-performing loans to $4.3 million as of June 30, 2016, a decrease of $2.7 million from December 31, 2015.” Horizon’s loan loss reserve ratio, excluding loans with credit-related purchase accounting adjustments, was 0.89% as of June 30, 2016. Loan loss reserves and credit-related loan discounts on acquired loans as a percentage of total loans was 1.32% as of June 30, 2016.
|
Non- GAAP Allowance for Loan and Lease Loss Detail
|
||||||||||||||||||||||||
|
As of June 30, 2016
|
||||||||||||||||||||||||
|
(Dollars in Thousands, Unaudited)
|
||||||||||||||||||||||||
|
Horizon
|
||||||||||||||||||||||||
|
Legacy
|
Heartland
|
Summit
|
Peoples
|
Kosciusko
|
Total
|
|||||||||||||||||||
|
Pre-discount loan balance
|
$
|
1,591,788
|
$
|
19,346
|
$
|
69,137
|
$
|
169,224
|
$
|
99,873
|
$
|
1,949,368
|
||||||||||||
|
Allowance for loan losses (ALLL)
|
14,226
|
-
|
-
|
-
|
-
|
14,226
|
||||||||||||||||||
|
Loan discount
|
N/A
|
1,222
|
2,801
|
3,694
|
3,826
|
11,543
|
||||||||||||||||||
|
ALLL+loan discount
|
14,226
|
1,222
|
2,801
|
3,694
|
3,826
|
25,769
|
||||||||||||||||||
|
Loans, net
|
$
|
1,577,562
|
$
|
18,124
|
$
|
66,336
|
$
|
165,530
|
$
|
96,047
|
$
|
1,923,599
|
||||||||||||
|
ALLL/ pre-discount loan balance
|
0.89
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.73
|
%
|
||||||||||||
|
Loan discount/ pre-discount loan balance
|
N/A
|
6.32
|
%
|
4.05
|
%
|
2.18
|
%
|
3.83
|
%
|
0.59
|
%
|
|||||||||||||
|
ALLL+loan discount/ pre-discount loan balance
|
0.89
|
%
|
6.32
|
%
|
4.05
|
%
|
2.18
|
%
|
3.83
|
%
|
1.32
|
%
|
||||||||||||
-MORE-
Pg. 5 cont. Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
Horizon completed the acquisitions of Kosciusko and LaPorte Bancorp on June 1, 2016 and July 18, 2016, respectively. On July 12, 2016, Horizon announced the signing of a definitive merger agreement with CNB Bancorp in Attica, Indiana, which is expected to be completed in the fourth quarter of 2016. Dwight concluded, “I could not be more pleased with the dedication and team work of all those involved in these mergers. Kosciusko fills the gap between Horizon’s central and northeast Indiana locations and adds a seasoned banking team in the growth market of Warsaw, Indiana and Kosciusko County. The LaPorte Bancorp acquisition is an in-market merger that adds experience and depth to Horizon’s team and cost saves through consolidation of branch office locations. The CNB Bancorp merger adds a seasoned banking team in Fountain County, Indiana and is a nice lead into the contiguous growth market of Lafayette, Indiana, home of Purdue University.”
Income Statement Highlights
Net income for the second quarter of 2016 was $6.3 million or $.52 diluted earnings per share compared to $4.7 million or $.49 diluted earnings per share in the second quarter of 2015. The increase in net income and earnings per share from the previous year reflects an increase in net interest income and non-interest income of $3.0 million and $2.7 million, respectively, and a decrease in the provision for loan losses of $1.7 million, partially offset by increases in non-interest expense of $4.9 million, income tax expense of $873,000 and the diluted shares outstanding primarily due to the stock issued in the Peoples Bancorp (“Peoples”) and Kosciusko acquisitions. Excluding acquisition-related expenses and purchase accounting adjustments and gain on sale of investment securities, net income for the second quarter of 2016 was $6.9 million or $.57 diluted earnings per share compared to $4.6 million or $.49 diluted earnings per share in the second quarter of 2015.
Net income for the six months ended June 30, 2016 was $11.7 million or $.96 diluted earnings per share compared to $10.1 million or $1.04 diluted earnings per share for the six months ended June 30, 2015. The increase in net income from the previous year reflects an increase in net interest income and non-interest income of $5.9 million and $3.5 million, respectively, and a decrease in the provision for loan losses of $1.8 million, partially offset by increases in non-interest expense of $8.6 million and income tax expense of $939,000. The decrease in diluted earnings per share compared to the same period of 2015 was due to an increase in the diluted shares outstanding primarily due to the stock issued in the Peoples and Kosciusko acquisitions. Excluding acquisition-related expenses and purchase accounting adjustments, gain on sale of investment securities and the death benefit on bank owned life insurance, net income for the first six months of 2016 was $12.3 million or $1.01 diluted earnings per share compared to $9.2 million or $.95 diluted earnings per share in the same period of 2015.
Horizon’s net interest margin was 3.48% during the second quarter of 2016, up from 3.45% for the prior quarter and down from 3.67% for same period of 2015. The increase in net interest margin compared to the prior quarter was the result of an improved mix of higher yielding assets and low cost deposits and a $415,000 prepayment penalty received on an investment security during the second quarter of 2016. The decrease in the net interest margin compared to the same period of
-MORE-
Pg. 6 cont. Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
2015 was due to lower yields on new loans and re-pricing earning assets and a decrease in interest income from acquisition-related purchase accounting adjustments, partially offset by lower rates and a change in mix on interest-bearing liabilities. Excluding acquisition-related purchase accounting
adjustments, the margin would have been 3.42% for the second quarter of 2016 compared to 3.36% for the prior quarter and 3.51% for the same period of 2015. Interest income from acquisition-related purchase accounting adjustments was $397,000, $547,000 and $797,000 for the three months ended June 30, 2016, March 31, 2016, and June 30 2015, respectively.
Horizon’s net interest margin was 3.47% for the six months ending June 30, 2016, down from 3.68% for same period of 2015. Excluding interest income from acquisition-related purchase accounting adjustments, the margin would have been 3.40% for the six months ending June 30, 2016 compared to 3.49% for same period of 2015. Interest income from acquisition-related purchase accounting adjustments was $944,000 and $1.9 million for the six months ended June 30, 2016 and June 30, 2015, respectively.
Lending Activity
Total loans increased $188.6 million from $1.8 billion as of December 31, 2015 to $1.9 billion as of June 30, 2016 as commercial loans increased by $69.6 million, mortgage warehouse loans increased by $61.0 million, residential mortgage loans increased by $56.5 million and consumer loans increased by $1.6 million.
Residential mortgage lending activity during the second quarter of 2016 generated $3.5 million in income from the gain on sale of mortgage loans, an increase of $887,000 from the same period of 2015. Total origination volume in the second quarter of 2016, including loans placed into portfolio, totaled $132.9 million, representing an increase of 16.2% from the same period of 2015. Purchase money mortgage originations during the second quarter of 2016 represented 78.2% of total originations compared to 65.3% of originations during the previous quarter and 71.8% during the second quarter of 2015.
Loan balances in the Kalamazoo and Indianapolis markets totaled $175.0 million and $175.5 million, respectively, as of June 30, 2016. Combined, these markets contributed $13.4 million in loan growth during the second quarter of 2016 or 15.9% on an annualized basis.
The provision for loan losses was $232,000 for the second quarter and $764,000 for the first six months of 2016, which was $1.7 million and $1.8 million lower than the provision for the second quarter and first six months of 2015, respectively. The decrease in provision for loan losses in the second quarter and for the first six months of 2016 was due to lower charge-offs and a decrease in non-performing loans.
The ratio of the allowance for loan losses to total loans decreased to 0.73% as of June 30, 2016 from 0.83% as of December 31, 2015 due to an increase in total loans and a decrease in the allowance for loan losses from $14.5 million as of December 31, 2015 to $14.2 million as of June 30, 2016. The ratio of the allowance for loan losses to total loans, excluding loans with credit-related purchase accounting adjustments, was 0.89% as of June 30, 2016.
-MORE-
Pg. 7 cont. Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
Non-performing loans totaled $13.2 million as of June 30, 2016 and $16.7 million as of December 31, 2015. Compared to December 31, 2015, non-performing commercial, real estate and consumer loans decreased by $2.7 million, $578,000 and $255,000, respectively. As a percentage of total loans, non-performing loans were 0.68% at June 30, 2016, down 27 basis points from 0.95% at December 31, 2015.
Expense Management
Total non-interest expense was $4.9 million higher in the second quarter of 2016 compared to the same period of 2015. The increase was primarily due to an increase in salaries, employee benefits, net occupancy expenses and other expense reflecting overall company growth. Non-interest expense for the second quarter of 2016 included $1.9 million of one-time merger-related expenses due to the Kosciusko and LaPorte Bancorp acquisitions compared to $570,000 in one-time merger-related expenses during the same period of 2015 due to the Peoples acquisition.
Total non-interest expense was $8.6 million higher in the first six months of 2016 compared to the same period of 2015. The increase in non-interest expense was due to an increase in salaries expense of $2.5 million, employee benefits of $1.1 million, net occupancy expenses of $911,000, data processing expense of $350,000, professional fees of $391,000, FDIC deposit insurance expense of $138,000, other losses of $298,000 and other expense of $1.3 million due to overall company growth. Non-interest expense for the first six months of 2016 included $2.5 million of one-time merger-related expenses due to the Kosciusko and LaPorte Bancorp acquisitions compared to $716,000 in one-time merger-related expenses in the same period of 2015 due to the Peoples acquisition.
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 of the net interest margin and the allowance for loan and lease losses excluding the impact of acquisition-related purchase accounting adjustments and net income and diluted earnings per share excluding the impact of one-time costs related to acquisitions, acquisition-related purchase accounting adjustments and other events that are considered to be non-recurring. 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, although 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.
About Horizon
Horizon Bancorp is a locally owned, independent, commercial bank holding company serving northern and central Indiana and southwest and central Michigan through its commercial banking subsidiary Horizon Bank, NA. Horizon also offers mortgage-banking services throughout the Midwest. Horizon Bancorp may be reached online at www.horizonbank.com. Its common stock is
-MORE-
Pg. 8 cont. Horizon Bancorp Announces Record Quarterly and Six-Month Net Income
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 Bancorp
|
|
Mark E. Secor
|
|
|
Chief 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)
|
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
|
2016
|
2016
|
2015
|
2015
|
2015
|
||||||||||||||||
|
Balance sheet:
|
||||||||||||||||||||
|
Total assets
|
$
|
2,918,080
|
$
|
2,627,918
|
$
|
2,652,401
|
$
|
2,607,914
|
$
|
2,219,307
|
||||||||||
|
Investment securities
|
628,935
|
642,767
|
632,611
|
617,860
|
493,631
|
|||||||||||||||
|
Commercial loans
|
874,580
|
797,754
|
804,995
|
795,271
|
709,946
|
|||||||||||||||
|
Mortgage warehouse loans
|
205,699
|
119,876
|
144,692
|
138,974
|
195,924
|
|||||||||||||||
|
Residential mortgage loans
|
493,626
|
442,806
|
437,144
|
430,946
|
277,407
|
|||||||||||||||
|
Consumer loans
|
363,920
|
359,636
|
362,300
|
361,298
|
336,006
|
|||||||||||||||
|
Earning assets
|
2,591,208
|
2,379,830
|
2,403,482
|
2,363,755
|
2,031,671
|
|||||||||||||||
|
Non-interest bearing deposit accounts
|
397,412
|
343,025
|
335,955
|
338,436
|
307,215
|
|||||||||||||||
|
Interest bearing transaction accounts
|
1,213,659
|
1,118,617
|
1,177,651
|
1,164,787
|
983,912
|
|||||||||||||||
|
Time deposits
|
471,190
|
416,837
|
366,547
|
409,852
|
293,596
|
|||||||||||||||
|
Borrowings
|
492,883
|
430,507
|
449,347
|
373,901
|
385,236
|
|||||||||||||||
|
Subordinated debentures
|
32,874
|
32,836
|
32,797
|
32,758
|
32,719
|
|||||||||||||||
|
Common stockholders' equity
|
281,002
|
261,417
|
254,332
|
252,238
|
189,631
|
|||||||||||||||
|
Total stockholders’ equity
|
281,002
|
261,417
|
266,832
|
264,738
|
202,131
|
|||||||||||||||
|
Income statement:
|
Three months ended
|
|||||||||||||||||||
|
Net interest income
|
$
|
20,869
|
$
|
19,774
|
$
|
20,222
|
$
|
19,776
|
$
|
17,850
|
||||||||||
|
Provision for loan losses
|
232
|
532
|
342
|
300
|
1,906
|
|||||||||||||||
|
Non-interest income
|
9,869
|
7,864
|
7,750
|
8,400
|
7,186
|
|||||||||||||||
|
Non-interest expenses
|
21,555
|
19,747
|
19,240
|
22,235
|
16,650
|
|||||||||||||||
|
Income tax expense
|
2,625
|
1,978
|
2,215
|
1,353
|
1,752
|
|||||||||||||||
|
Net income
|
6,326
|
5,381
|
6,175
|
4,288
|
4,728
|
|||||||||||||||
|
Preferred stock dividend
|
-
|
(42
|
)
|
(31
|
)
|
(31
|
)
|
(31
|
)
|
|||||||||||
|
Net income available to common shareholders
|
$
|
6,326
|
$
|
5,339
|
$
|
6,144
|
$
|
4,257
|
$
|
4,697
|
||||||||||
|
Per share data:
|
||||||||||||||||||||
|
Basic earnings per share
|
$
|
0.52
|
$
|
0.45
|
$
|
0.51
|
$
|
0.37
|
$
|
0.51
|
||||||||||
|
Diluted earnings per share
|
0.52
|
0.44
|
0.51
|
0.36
|
0.49
|
|||||||||||||||
|
Cash dividends declared per common share
|
0.15
|
0.15
|
0.15
|
0.15
|
0.14
|
|||||||||||||||
|
Book value per common share
|
22.35
|
21.82
|
21.30
|
21.14
|
20.49
|
|||||||||||||||
|
Tangible book value per common share
|
17.17
|
17.08
|
16.53
|
16.34
|
17.06
|
|||||||||||||||
|
Market value - high
|
25.14
|
27.88
|
28.15
|
26.15
|
26.03
|
|||||||||||||||
|
Market value - low
|
$
|
23.80
|
$
|
23.11
|
$
|
23.58
|
$
|
22.60
|
$
|
22.85
|
||||||||||
|
Weighted average shares outstanding - Basic
|
12,179,253
|
11,949,416
|
11,937,247
|
11,605,976
|
9,240,005
|
|||||||||||||||
|
Weighted average shares outstanding - Diluted
|
12,242,778
|
12,008,484
|
12,013,743
|
11,893,254
|
9,637,586
|
|||||||||||||||
|
Key ratios:
|
||||||||||||||||||||
|
Return on average assets
|
0.94
|
%
|
0.83
|
%
|
0.94
|
%
|
0.67
|
%
|
0.87
|
%
|
||||||||||
|
Return on average common stockholders' equity
|
9.43
|
8.26
|
9.53
|
6.76
|
9.88
|
|||||||||||||||
|
Net interest margin
|
3.48
|
3.45
|
3.50
|
3.51
|
3.67
|
|||||||||||||||
|
Loan loss reserve to total loans
|
0.73
|
0.83
|
0.83
|
0.93
|
1.08
|
|||||||||||||||
|
Non-performing loans to loans
|
0.68
|
0.87
|
0.95
|
1.21
|
1.51
|
|||||||||||||||
|
Average equity to average assets
|
9.94
|
10.16
|
10.32
|
10.38
|
9.32
|
|||||||||||||||
|
Bank only capital ratios:
|
||||||||||||||||||||
|
Tier 1 capital to average assets
|
9.39
|
8.98
|
8.77
|
9.31
|
8.24
|
|||||||||||||||
|
Tier 1 capital to risk weighted assets
|
12.51
|
12.33
|
11.80
|
12.30
|
10.76
|
|||||||||||||||
|
Total capital to risk weighted assets
|
13.23
|
13.10
|
12.57
|
13.17
|
11.76
|
|||||||||||||||
|
Loan data:
|
||||||||||||||||||||
|
Substandard loans
|
$
|
28,629
|
$
|
23,600
|
$
|
25,127
|
$
|
26,073
|
$
|
28,220
|
||||||||||
|
30 to 89 days delinquent
|
2,887
|
2,149
|
5,011
|
4,868
|
3,326
|
|||||||||||||||
|
90 days and greater delinquent - accruing interest
|
$
|
24
|
$
|
1
|
$
|
28
|
$
|
100
|
$
|
207
|
||||||||||
|
Trouble debt restructures - accruing interest
|
1,256
|
1,231
|
1,218
|
2,948
|
3,271
|
|||||||||||||||
|
Trouble debt restructures - non-accrual
|
1,466
|
2,857
|
3,172
|
3,994
|
4,523
|
|||||||||||||||
|
Non-accrual loans
|
10,426
|
10,895
|
12,262
|
13,956
|
15,050
|
|||||||||||||||
|
Total non-performing loans
|
$
|
13,172
|
$
|
14,984
|
$
|
16,680
|
$
|
20,998
|
$
|
23,051
|
||||||||||
9
HORIZON BANCORP
Financial Highlights
(Dollars in thousands except share and per share data and ratios, Unaudited)
|
June 30
|
June 30
|
|||||||
|
2016
|
2015
|
|||||||
|
Balance sheet:
|
||||||||
|
Total assets
|
$
|
2,918,080
|
$
|
2,219,307
|
||||
|
Investment securities
|
628,935
|
493,631
|
||||||
|
Commercial loans
|
874,580
|
709,946
|
||||||
|
Mortgage warehouse loans
|
205,699
|
195,924
|
||||||
|
Residential mortgage loans
|
493,626
|
277,407
|
||||||
|
Consumer loans
|
363,920
|
336,006
|
||||||
|
Earning assets
|
2,591,208
|
2,031,671
|
||||||
|
Non-interest bearing deposit accounts
|
397,412
|
307,215
|
||||||
|
Interest bearing transaction accounts
|
1,213,659
|
983,912
|
||||||
|
Time deposits
|
471,190
|
293,596
|
||||||
|
Borrowings
|
492,883
|
385,236
|
||||||
|
Subordinated debentures
|
32,874
|
32,719
|
||||||
|
Common stockholders' equity
|
281,002
|
189,631
|
||||||
|
Total stockholders’ equity
|
281,002
|
202,131
|
||||||
|
Income statement:
|
Six Months Ended
|
|||||||
|
Net interest income
|
$
|
40,643
|
$
|
34,736
|
||||
|
Provision for loan losses
|
764
|
2,520
|
||||||
|
Non-interest income
|
17,733
|
14,252
|
||||||
|
Non-interest expenses
|
41,302
|
32,718
|
||||||
|
Income tax expense
|
4,603
|
3,664
|
||||||
|
Net income
|
11,707
|
10,086
|
||||||
|
Preferred stock dividend
|
(42
|
)
|
(63
|
)
|
||||
|
Net income available to common shareholders
|
$
|
11,665
|
$
|
10,023
|
||||
|
Per share data:
|
||||||||
|
Basic earnings per share
|
$
|
0.97
|
$
|
1.09
|
||||
|
Diluted earnings per share
|
0.96
|
1.04
|
||||||
|
Cash dividends declared per common share
|
0.30
|
0.28
|
||||||
|
Book value per common share
|
22.35
|
20.49
|
||||||
|
Tangible book value per common share
|
17.17
|
17.06
|
||||||
|
Market value - high
|
27.88
|
26.14
|
||||||
|
Market value - low
|
$
|
23.11
|
$
|
22.38
|
||||
|
Weighted average shares outstanding - Basic
|
12,064,335
|
9,228,075
|
||||||
|
Weighted average shares outstanding - Diluted
|
12,127,028
|
9,615,551
|
||||||
|
Key ratios:
|
||||||||
|
Return on average assets
|
0.89
|
%
|
0.96
|
%
|
||||
|
Return on average common stockholders' equity
|
9.26
|
10.73
|
||||||
|
Net interest margin
|
3.47
|
3.68
|
||||||
|
Loan loss reserve to total loans
|
0.73
|
1.08
|
||||||
|
Non-performing loans to loans
|
0.68
|
1.51
|
||||||
|
Average equity to average assets
|
10.05
|
9.45
|
||||||
|
Bank only capital ratios:
|
||||||||
|
Tier 1 capital to average assets
|
9.39
|
8.18
|
||||||
|
Tier 1 capital to risk weighted assets
|
12.51
|
11.04
|
||||||
|
Total capital to risk weighted assets
|
13.23
|
12.08
|
||||||
|
Loan data:
|
||||||||
|
Substandard loans
|
$
|
28,629
|
$
|
28,220
|
||||
|
30 to 89 days delinquent
|
2,887
|
3,326
|
||||||
|
90 days and greater delinquent - accruing interest
|
$
|
24
|
$
|
207
|
||||
|
Trouble debt restructures - accruing interest
|
1,256
|
3,271
|
||||||
|
Trouble debt restructures - non-accrual
|
1,466
|
4,523
|
||||||
|
Non-accrual loans
|
10,426
|
15,050
|
||||||
|
Total non-performing loans
|
$
|
13,172
|
$
|
23,051
|
||||
10
HORIZON BANCORP
Allocation of the Allowance for Loan and Lease Losses
(Dollars in Thousands, Unaudited)
|
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
|
2016
|
2016
|
2015
|
2015
|
2015
|
||||||||||||||||
|
Commercial
|
$
|
6,051
|
$
|
6,460
|
$
|
7,195
|
$
|
8,842
|
$
|
8,386
|
||||||||||
|
Real estate
|
2,102
|
1,794
|
2,476
|
2,297
|
3,044
|
|||||||||||||||
|
Mortgage warehousing
|
1,080
|
1,014
|
1,007
|
1,015
|
1,319
|
|||||||||||||||
|
Consumer
|
4,993
|
4,968
|
3,856
|
4,014
|
3,672
|
|||||||||||||||
|
Total
|
$
|
14,226
|
$
|
14,236
|
$
|
14,534
|
$
|
16,168
|
$
|
16,421
|
||||||||||
Net Charge-offs (Recoveries)
(Dollars in Thousands, Unaudited)
|
Three months ended
|
||||||||||||||||||||
|
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
|
2016
|
2016
|
2015
|
2015
|
2015
|
||||||||||||||||
|
Commercial
|
$
|
101
|
$
|
403
|
$
|
1,595
|
$
|
77
|
$
|
1,583
|
||||||||||
|
Real estate
|
(31
|
)
|
83
|
(59
|
)
|
96
|
161
|
|||||||||||||
|
Mortgage warehousing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Consumer
|
172
|
344
|
440
|
380
|
375
|
|||||||||||||||
|
Total
|
$
|
242
|
$
|
830
|
$
|
1,976
|
$
|
553
|
$
|
2,119
|
||||||||||
Total Non-performing Loans
(Dollars in Thousands, Unaudited)
|
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
|
2016
|
2016
|
2015
|
2015
|
2015
|
||||||||||||||||
|
Commercial
|
$
|
4,330
|
$
|
5,774
|
$
|
7,005
|
$
|
10,832
|
$
|
13,384
|
||||||||||
|
Real estate
|
5,659
|
5,974
|
6,237
|
6,315
|
5,819
|
|||||||||||||||
|
Mortgage warehousing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Consumer
|
3,183
|
3,236
|
3,438
|
3,851
|
3,848
|
|||||||||||||||
|
Total
|
$
|
13,172
|
$
|
14,984
|
$
|
16,680
|
$
|
20,998
|
$
|
23,051
|
||||||||||
Other Real Estate Owned and Repossessed Assets
(Dollars in Thousands, Unaudited)
|
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
|
2016
|
2016
|
2015
|
2015
|
2015
|
||||||||||||||||
|
Commercial
|
$
|
542
|
$
|
424
|
$
|
161
|
$
|
324
|
$
|
376
|
||||||||||
|
Real estate
|
2,925
|
3,393
|
3,046
|
958
|
58
|
|||||||||||||||
|
Mortgage warehousing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Consumer
|
69
|
-
|
-
|
-
|
37
|
|||||||||||||||
|
Total
|
$
|
3,536
|
$
|
3,817
|
$
|
3,207
|
$
|
1,282
|
$
|
471
|
||||||||||
11
HORIZON BANCORP AND SUBSIDIARIES
Average Balance Sheets
(Dollar Amounts in Thousands, Unaudited)
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
|
June 30, 2016
|
June 30, 2015
|
|||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||
|
Interest-earning assets
|
||||||||||||||||||||||||
|
Federal funds sold
|
$
|
3,309
|
$
|
4
|
0.49
|
%
|
$
|
3,597
|
$
|
2
|
0.22
|
%
|
||||||||||||
|
Interest-earning deposits
|
28,045
|
59
|
0.85
|
%
|
8,608
|
5
|
0.23
|
%
|
||||||||||||||||
|
Investment securities - taxable
|
469,925
|
2,598
|
2.22
|
%
|
363,919
|
2,060
|
2.27
|
%
|
||||||||||||||||
|
Investment securities - non-taxable (1)
|
182,886
|
1,195
|
3.70
|
%
|
141,784
|
1,079
|
4.24
|
%
|
||||||||||||||||
|
Loans receivable (2)(3)
|
1,787,189
|
20,794
|
4.69
|
%
|
1,490,283
|
17,981
|
4.87
|
%
|
||||||||||||||||
|
Total interest-earning assets (1)
|
2,471,354
|
24,650
|
4.10
|
%
|
2,008,191
|
21,127
|
4.33
|
%
|
||||||||||||||||
|
Non-interest-earning assets
|
||||||||||||||||||||||||
|
Cash and due from banks
|
35,435
|
31,783
|
||||||||||||||||||||||
|
Allowance for loan losses
|
(14,350
|
)
|
(16,756
|
)
|
||||||||||||||||||||
|
Other assets
|
223,258
|
157,795
|
||||||||||||||||||||||
|
$
|
2,715,697
|
$
|
2,181,013
|
|||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||||||||||
|
Interest-bearing deposits
|
$
|
1,625,024
|
$
|
1,557
|
0.39
|
%
|
$
|
1,255,123
|
$
|
1,237
|
0.40
|
%
|
||||||||||||
|
Borrowings
|
400,585
|
1,721
|
1.73
|
%
|
381,782
|
1,539
|
1.62
|
%
|
||||||||||||||||
|
Subordinated debentures
|
32,854
|
503
|
6.16
|
%
|
32,699
|
501
|
6.15
|
%
|
||||||||||||||||
|
Total interest-bearing liabilities
|
2,058,463
|
3,781
|
0.74
|
%
|
1,669,604
|
3,277
|
0.79
|
%
|
||||||||||||||||
|
Non-interest-bearing liabilities
|
||||||||||||||||||||||||
|
Demand deposits
|
364,822
|
294,425
|
||||||||||||||||||||||
|
Accrued interest payable and other liabilities
|
22,574
|
13,770
|
||||||||||||||||||||||
|
Stockholders' equity
|
269,838
|
203,214
|
||||||||||||||||||||||
|
$
|
2,715,697
|
$
|
2,181,013
|
|||||||||||||||||||||
|
Net interest income/spread
|
$
|
20,869
|
3.36
|
%
|
$
|
17,850
|
3.54
|
%
|
||||||||||||||||
|
Net interest income as a percent of average interest earning assets (1)
|
3.48
|
%
|
3.67
|
%
|
||||||||||||||||||||
|
(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.
|
12
HORIZON BANCORP AND SUBSIDIARIES
Average Balance Sheets
(Dollar Amounts in Thousands, Unaudited)
|
Six Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
|
June 30, 2016
|
June 30, 2015
|
|||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||
|
Interest-earning assets
|
||||||||||||||||||||||||
|
Federal funds sold
|
$
|
2,853
|
$
|
4
|
0.28
|
%
|
$
|
4,198
|
$
|
11
|
0.53
|
%
|
||||||||||||
|
Interest-earning deposits
|
24,300
|
109
|
0.90
|
%
|
9,684
|
10
|
0.21
|
%
|
||||||||||||||||
|
Investment securities - taxable
|
464,209
|
5,092
|
2.21
|
%
|
362,250
|
4,200
|
2.34
|
%
|
||||||||||||||||
|
Investment securities - non-taxable (1)
|
181,660
|
2,432
|
3.64
|
%
|
141,269
|
2,156
|
4.27
|
%
|
||||||||||||||||
|
Loans receivable (2)(3)
|
1,733,446
|
40,541
|
4.71
|
%
|
1,436,886
|
34,843
|
4.90
|
%
|
||||||||||||||||
|
Total interest-earning assets (1)
|
2,406,468
|
48,178
|
4.10
|
%
|
1,954,287
|
41,220
|
4.35
|
%
|
||||||||||||||||
|
Non-interest-earning assets
|
||||||||||||||||||||||||
|
Cash and due from banks
|
34,246
|
30,396
|
||||||||||||||||||||||
|
Allowance for loan losses
|
(14,350
|
)
|
(16,623
|
)
|
||||||||||||||||||||
|
Other assets
|
217,797
|
157,669
|
||||||||||||||||||||||
|
$
|
2,644,161
|
$
|
2,125,729
|
|||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||||||||||
|
Interest-bearing deposits
|
$
|
1,571,579
|
$
|
3,048
|
0.39
|
%
|
$
|
1,235,601
|
$
|
2,469
|
0.40
|
%
|
||||||||||||
|
Borrowings
|
401,594
|
3,480
|
1.74
|
%
|
359,436
|
3,018
|
1.69
|
%
|
||||||||||||||||
|
Subordinated debentures
|
32,653
|
1,007
|
6.20
|
%
|
32,678
|
997
|
6.15
|
%
|
||||||||||||||||
|
Total interest-bearing liabilities
|
2,005,826
|
7,535
|
0.76
|
%
|
1,627,715
|
6,484
|
0.80
|
%
|
||||||||||||||||
|
Non-interest-bearing liabilities
|
||||||||||||||||||||||||
|
Demand deposits
|
350,157
|
282,796
|
||||||||||||||||||||||
|
Accrued interest payable and other liabilities
|
22,465
|
14,374
|
||||||||||||||||||||||
|
Stockholders' equity
|
265,713
|
200,844
|
||||||||||||||||||||||
|
$
|
2,644,161
|
$
|
2,125,729
|
|||||||||||||||||||||
|
Net interest income/spread
|
$
|
40,643
|
3.34
|
%
|
$
|
34,736
|
3.55
|
%
|
||||||||||||||||
|
Net interest income as a percent of average interest earning assets (1)
|
3.47
|
%
|
3.68
|
%
|
||||||||||||||||||||
|
(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.
|
13
HORIZON BANCORP AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollar Amounts in Thousands)
|
June 30
|
December 31
|
|||||||
|
2016
|
2015
|
|||||||
|
(Unaudited)
|
||||||||
|
Assets
|
||||||||
|
Cash and due from banks
|
$
|
109,224
|
$
|
48,650
|
||||
|
Investment securities, available for sale
|
455,239
|
444,982
|
||||||
|
Investment securities, held to maturity (fair value of $180,059 and $193,703)
|
173,696
|
187,629
|
||||||
|
Loans held for sale
|
7,812
|
7,917
|
||||||
|
Loans, net of allowance for loan losses of $14,226 and $14,534
|
1,923,599
|
1,734,597
|
||||||
|
Premises and equipment, net
|
61,186
|
60,798
|
||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
16,636
|
13,823
|
||||||
|
Goodwill
|
56,458
|
49,600
|
||||||
|
Other intangible assets
|
8,686
|
7,371
|
||||||
|
Interest receivable
|
11,526
|
10,535
|
||||||
|
Cash value of life insurance
|
57,944
|
54,504
|
||||||
|
Other assets
|
36,074
|
31,995
|
||||||
|
Total assets
|
$
|
2,918,080
|
$
|
2,652,401
|
||||
|
Liabilities
|
||||||||
|
Deposits
|
||||||||
|
Non-interest bearing
|
$
|
397,412
|
$
|
335,955
|
||||
|
Interest bearing
|
1,684,849
|
1,544,198
|
||||||
|
Total deposits
|
2,082,261
|
1,880,153
|
||||||
|
Borrowings
|
492,883
|
449,347
|
||||||
|
Subordinated debentures
|
32,874
|
32,797
|
||||||
|
Interest payable
|
961
|
507
|
||||||
|
Other liabilities
|
28,099
|
22,765
|
||||||
|
Total liabilities
|
2,637,078
|
2,385,569
|
||||||
|
Commitments and contingent liabilities
|
||||||||
|
Stockholders’ Equity
|
||||||||
|
Preferred stock, Authorized, 1,000,000 shares
|
||||||||
|
Series B shares $.01 par value, $1,000 liquidation value
|
||||||||
|
Issued 0 and 12,500 shares
|
-
|
12,500
|
||||||
|
Common stock, no par value
|
||||||||
|
Authorized, 22,500,000 shares
|
||||||||
|
Issued, 12,590,784 and 11,995,324 shares
|
||||||||
|
Outstanding, 12,571,534 and 11,939,887 shares
|
-
|
-
|
||||||
|
Additional paid-in capital
|
120,758
|
106,370
|
||||||
|
Retained earnings
|
156,651
|
148,685
|
||||||
|
Accumulated other comprehensive income (loss)
|
3,593
|
(723
|
)
|
|||||
|
Total stockholders’ equity
|
281,002
|
266,832
|
||||||
|
Total liabilities and stockholders’ equity
|
$
|
2,918,080
|
$
|
2,652,401
|
||||
14
HORIZON BANCORP AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Dollar Amounts in Thousands, Except Per Share Data, Unaudited)
(Dollar Amounts in Thousands, Except Per Share Data, Unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
|
June 30
|
June 30
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
|
Interest Income
|
||||||||||||||||
|
Loans receivable
|
$
|
20,794
|
$
|
17,981
|
$
|
40,541
|
$
|
34,843
|
||||||||
|
Investment securities
|
||||||||||||||||
|
Taxable
|
2,661
|
2,067
|
5,205
|
4,221
|
||||||||||||
|
Tax exempt
|
1,195
|
1,079
|
2,432
|
2,156
|
||||||||||||
|
Total interest income
|
24,650
|
21,127
|
48,178
|
41,220
|
||||||||||||
|
Interest Expense
|
||||||||||||||||
|
Deposits
|
1,557
|
1,237
|
3,048
|
2,469
|
||||||||||||
|
Borrowed funds
|
1,721
|
1,539
|
3,480
|
3,018
|
||||||||||||
|
Subordinated debentures
|
503
|
501
|
1,007
|
997
|
||||||||||||
|
Total interest expense
|
3,781
|
3,277
|
7,535
|
6,484
|
||||||||||||
|
Net Interest Income
|
20,869
|
17,850
|
40,643
|
34,736
|
||||||||||||
|
Provision for loan losses
|
232
|
1,906
|
764
|
2,520
|
||||||||||||
|
Net Interest Income after Provision for Loan Losses
|
20,637
|
15,944
|
39,879
|
32,216
|
||||||||||||
|
Non-interest Income
|
||||||||||||||||
|
Service charges on deposit accounts
|
1,335
|
1,085
|
2,573
|
2,084
|
||||||||||||
|
Wire transfer fees
|
175
|
182
|
296
|
333
|
||||||||||||
|
Interchange fees
|
1,663
|
1,366
|
3,121
|
2,468
|
||||||||||||
|
Fiduciary activities
|
1,465
|
1,216
|
3,100
|
2,513
|
||||||||||||
|
Gain on sale of investment securities (includes $767 for the three months ended and $875 for the six months ended June 30, 2016 and $0 for the three months ended and $124 for the six months ended June 30, 2015, related to accumulated other comprehensive earnings reclassifications)
|
767
|
-
|
875
|
124
|
||||||||||||
|
Gain on sale of mortgage loans
|
3,529
|
2,642
|
5,643
|
5,021
|
||||||||||||
|
Mortgage servicing income net of impairment
|
500
|
300
|
947
|
479
|
||||||||||||
|
Increase in cash value of bank owned life insurance
|
351
|
257
|
696
|
515
|
||||||||||||
|
Death benefit on bank owned life insurance
|
-
|
-
|
-
|
145
|
||||||||||||
|
Other income
|
84
|
138
|
482
|
570
|
||||||||||||
|
Total non-interest income
|
9,869
|
7,186
|
17,733
|
14,252
|
||||||||||||
|
Non-interest Expense
|
||||||||||||||||
|
Salaries and employee benefits
|
10,317
|
8,385
|
20,382
|
16,889
|
||||||||||||
|
Net occupancy expenses
|
1,901
|
1,375
|
3,837
|
2,926
|
||||||||||||
|
Data processing
|
1,134
|
966
|
2,239
|
1,889
|
||||||||||||
|
Professional fees
|
747
|
660
|
1,578
|
1,187
|
||||||||||||
|
Outside services and consultants
|
2,198
|
918
|
3,297
|
1,544
|
||||||||||||
|
Loan expense
|
1,409
|
1,367
|
2,604
|
2,624
|
||||||||||||
|
FDIC insurance expense
|
409
|
339
|
814
|
676
|
||||||||||||
|
Other losses
|
136
|
150
|
403
|
105
|
||||||||||||
|
Other expense
|
3,304
|
2,490
|
6,148
|
4,878
|
||||||||||||
|
Total non-interest expense
|
21,555
|
16,650
|
41,302
|
32,718
|
||||||||||||
|
Income Before Income Tax
|
8,951
|
6,480
|
16,310
|
13,750
|
||||||||||||
|
Income tax expense (includes $268 for the three months ended and $306 for the six months ended June 30, 2016 and $0 for the three months ended and $43 for the six months ended June 30, 2015, related to income tax expense from reclassification items)
|
2,625
|
1,752
|
4,603
|
3,664
|
||||||||||||
|
Net Income
|
6,326
|
4,728
|
11,707
|
10,086
|
||||||||||||
|
Preferred stock dividend
|
-
|
(31
|
)
|
(42
|
)
|
(63
|
)
|
|||||||||
|
Net Income Available to Common Shareholders
|
$
|
6,326
|
$
|
4,697
|
$
|
11,665
|
$
|
10,023
|
||||||||
|
Basic Earnings Per Share
|
$
|
0.52
|
$
|
0.51
|
$
|
0.97
|
$
|
1.09
|
||||||||
|
Diluted Earnings Per Share
|
0.52
|
0.49
|
0.96
|
1.04
|
||||||||||||
15