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.”