Horizon Bancorp (NASDAQ: HBNC) today announced its unaudited financial results for the three and six month periods ended June 30, 2010. SUMMARY:
Horizon’s second quarter 2010 net income was $2.5 million or $0.65 diluted earnings per share, a 40.4% increase in net income from the previous quarter.
Horizon’s net income for the six months ended June 30, 2010, was $4.3 million or $1.09 diluted earnings per share.
The purchase and assumption of American Trust & Savings Bank in Whiting, Indiana closed on May 28, 2010 adding $107.8 million in purchased assets and $110.3 million of assumed liabilities.
The expensed acquisition costs for American Trust & Savings Bank were $555,000 during the second quarter of 2010 and were $664,000 for the first six months of 2010.
The net interest margin increased during the second quarter as excess cash held during the first quarter was deployed into higher yielding assets along with a reduction in the overall cost of funds.
The activity in mortgage warehouse lending increased the average loan balance during the quarter, increasing interest income.
Horizon continued to experience steady residential mortgage loan activity during the second quarter providing $1.7 million of income from the gain on sale of mortgage loans.
Horizon continues to build its loan and lease loss reserve.
Horizon’s quarterly provision for loan losses decreased by approximately $233,000 from the allowance for the first quarter of 2010.
The ratio of allowance for loan losses to total loans decreased to 1.77% from 1.99% at March 31, 2010 due to the increase in total loans from mortgage warehousing and the acquisition of loans at fair market value from American Trust & Savings Bank.
Horizon’s net loans charged off declined during the second quarter to $2.6 million compared to $3.1 million during the first quarter of 2010.
Horizon’s balance of Other Real Estate Owned and repossessed assets increased approximately $677,000, to $2.9 million, during the second quarter.
Horizon’s non-performing loans increased approximately $4.8 million from March 31, 2010 to June 30, 2010, primarily due to a $4.6 million loan secured by a hotel being placed on non-accrual during the quarter.
Horizon’s non-performing loans to total loans ratio as of June 30, 2010 was 2.26%, which compares favorably to National and State of Indiana peer averages 1 of 2.83% and 4.82%, respectively, as of March 31, 2010, the most recent data available.
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, “The second quarter was extremely busy and rewarding for the Horizon team as we successfully closed on the American Trust & Savings Bank purchase and assumption and completed the related data processing conversion. In addition, the improvement in earnings speaks well of our competent team of dedicated and seasoned bankers given these tough economic times.”