Horizon Bancorp (NASDAQ: HBNC) today announced its unaudited financial results for the three months ended March 31, 2010. SUMMARY:
First quarter net income was $1.8 million or $0.44 diluted earnings per share.
Lower volume in mortgage warehouse lending reduced average loans during the quarter, decreasing interest income.
Horizon continued to experience steady residential mortgage loan activity through the first quarter with $1.4 million from the gain on sale of mortgage loans.
Horizon continues to build loan loss reserves.
Horizon’s quarterly provision to the allowance for loan loss reserve decreased by approximately $467,000 from the fourth quarter of 2009. However the ratio of allowance for loan losses to total loans increased to 1.97% from 1.80% at December 31, 2009.
Horizon’s net loans charged off during the first quarter were $3.1 million compared to $1.6 million for the fourth quarter of 2009.
Horizon’s balance of Other Real Estate Owned increased approximately $345,000 during the first quarter primarily due to the addition of one commercial property.
Horizon’s non-performing loans decreased approximately $755,000 from December 31, 2009 to March 31, 2010.
Horizon’s non-performing loans to total loans ratio as of March 31, 2010 was 2.00%, which compares favorably to National and State of Indiana peer averages 1 of 4.66% and 2.71%, respectively, of total loans as of December 31, 2009.
Horizon’s capital ratios continue to be above the regulatory standards for well-capitalized banks.
Craig M. Dwight, Chief Executive Officer of Horizon Bancorp stated, “We are proud to report a continuation of quarterly profits given the economic challenges and stress on loan portfolios throughout the industry. Horizon’s success is a result of the cumulative effort of our dedicated team and their ability to accomplish goals and seek new opportunities.”