10. Horizon Bancorp
Shares of Horizon Bancorp (HBNC) of Michigan City, Ind., closed at $19.18 Friday, down 2% year-to-date, following a 74% return during 2012. The shares trade for 1.3 times their reported March 31 tangible book value of $14.64, and for 8.9 times the consensus 2014 earnings estimate of $2.14 a share. The consensus 2013 EPS estimate is $2.29.
Based on a quarterly payout of 10 cents, the shares have a dividend yield of 2.09%.Horizon Bancorp reported first-quarter net income to common shareholders of $5.2 million, or 58 cents a share, compared to $5.0 million, or 56 cents a share, in the fourth quarter, and from $4.5 million, or 59 cents a share, in the first quarter of 2012. The bank reported $3.1 million in gains on the sale of mortgage loans during the first quarter, declining from $4.0 million the previous quarter, but increasing from $2.3 million in the first quarter of 2012. The decline was typical for most banks in the first quarter, with reduced mortgage loan refinancing activity, as well a narrowing of gain-on-sale spreads for the sale of new loans. Horizon achieved a solid return on average assets (ROA) of 1.24% and a return on average common equity of 14.11% during the first quarter. KBW analyst John Barber has a "market perform" rating on Horizon Bancorp, with a price target of $21, saying in a note to clients on April 18 that "Horizon continues to post solid results and peer leading profitability metrics." The analyst added that over the long haul, lower mortgage activity and additional expenses from the acquisition of Heartland Bancshares of Franklin Indiana last July, "represent earnings headwinds; however, the company remains opportunistic and well positioned to continue growing the core franchise." Interested in more on Horizon Bancorp? See TheStreet Ratings' report card for this stock.