(NASDAQ:HBNC) – Horizon Bancorp today announced its unaudited financial results for the three-month period ended March 31, 2011.
- Horizon’s first quarter 2011 net income was $2.8 million or $.74 diluted earnings per share, a 54.4% increase in net income from the same period in 2010 and the highest first quarter net income in the Company’s history.
- Total deposits grew to over $1.0 billion at March 31, 2011, a $15.9 million increase from December 31, 2010.
- Borrowings decreased by $36.4 million in the first quarter of 2011 from December 31, 2010.
- Net interest income after provisions for loan losses was $9.5 million compared with $7.3 million in the prior year’s first quarter.
- Total loans decreased during the first quarter as the balance of mortgage warehouse loans decreased $74.7 million from December 31, 2010 as a result of an increase in long term mortgage interest rates.
- Commercial loans were $335.8 million, up 8% from the first quarter 2010.
- Residential mortgage loans of $164.2 million at March 31, 2011 rose 21% compared with first quarter 2010, partially reflecting loans acquired in the American Trust acquisition.
- Investment securities increased during the first quarter of 2011 as excess cash was invested.
- The Company’s mortgage servicing asset recovered $701,000 of impairment during the first quarter of 2011 as mortgage loan refinancing activity slowed.
- The provision for loan losses decreased to $1.5 million for the first quarter of 2011 compared to $2.7 million for the fourth quarter of 2010.
- Horizon’s capital ratios continue to be above the regulatory standards for well-capitalized banks.
Craig M. Dwight, President and CEO, stated: “Generating the highest first quarter net income in the Company’s history was a significant accomplishment for Horizon and we believe underscores our strict attention to expense control, our ability to generate new banking relationships, and the value of our balanced revenue mix. We continue to gain market share, particularly in commercial banking, as small businesses look to migrate from larger banks. The dramatic reduction in our provision for loan losses represents an encouraging trend we feel can continue in an improving economic environment.”