Horizon Bancorp Announces Record Earnings For The First Nine Months

Horizon Bancorp (NASDAQ: HBNC) today announced its unaudited financial results for the three and nine month periods ended September 30, 2012. All share data has been adjusted to reflect Horizon’s three-for-two stock split announced on October 16, 2012 to be paid on November 9, 2012.

SUMMARY:
  • Horizon’s net income of $14.4 million for the first nine months of 2012 surpasses the $12.8 million earned for the entire prior year and represents the highest first nine months of net income in the Company’s history.
  • Third quarter 2012 net income was $4.8 million or $.54 diluted earnings per share, which reflects a 50% increase in diluted earnings per share compared to the same period in 2011.
  • Horizon’s net income for the first nine months of 2012 was $14.4 million or $1.75 diluted earnings per share, which reflects a 67% increase in diluted earnings per share compared to the same period in 2011.
  • On July 17, 2012 Horizon completed its acquisition of Heartland Bancshares, Inc. (“Heartland”). On that date Horizon recorded $229.5 million in assets and $218.7 million in liabilities.
  • Total loans increased $157.9 million during the quarter, consisting of $43.3 million in organic loan growth and $114.6 million net loans acquired from Heartland.
  • Total deposits increased $261.2 million during the quarter, comprising $50.0 million in organic deposit growth and $211.2 million in deposits acquired from Heartland.
  • Net interest income, after provisions for loan losses, for the first nine months of 2012 was $39.4 million compared with $30.1 million for the same period in the prior year.
  • The provision for loan losses decreased to $1.8 million for the first nine months of 2012 compared to $4.4 million for the same period in 2011.
  • Net charge-offs for the first nine months of 2012 were $2.1 million compared to $4.4 million for the same period in 2011.
  • Substandard and delinquent loans increased by $21.4 million and $4.6 million respectively over the prior quarter. The increases were primarily due to loans acquired in the Heartland merger.
  • Return on average assets was 1.09% for the third quarter of 2012 and 1.21% for the first nine months of 2012.
  • Return on average common equity was 13.96% for the third quarter of 2012 and 15.24% for the first nine months of 2012.
  • Horizon Bank’s capital ratios continue to be well above the regulatory standards for well-capitalized banks.

“Throughout the Horizon organization, our employees continue to be successful in identifying and targeting opportunities to expand deposits, make new loans and increase our banking relationships with customers,” said Craig M. Dwight, Chief Executive Officer. “In a lackluster economy, achieving growth targets has required diligent effort, and the Horizon team has demonstrated it’s up to the task.”

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