Horizon Bancorp’s meteoric rise has continued, scoring record net income and earnings per share never before seen in the 145-year history of the Michigan City-based bank holding company which has multiple branches across Michigan’s Great Southwest under the Horizon Bank brand.
Craig Dwight, Chairman and CEO of Horizon, says: “Horizon’s 2018 third quarter and year-to-date results demonstrate our ability to generate organic growth and produce solid returns, through increased mass and scale and investments in growth markets.” He adds, “Horizon’s 2018 third quarter earnings of $0.34 diluted earnings per share is a 41.7-percent increase from our 2017 third quarter earnings of $0.24 diluted earnings per share. Net income increased $4.9 million, or 59.9-percent, to $13.1 million when compared to the prior year period.”
Horizon Bancorp, Inc has announced its unaudited financial results for the three-month and nine-month periods ended September 30, 2018.
All share data has been adjusted to reflect Horizon’s three-for-two stock split effective June 15, 2018.
SUMMARY:
- Net income for the quarter ended September 30, 2018 was $13.1 million, or $0.34 diluted earnings per share, compared to $8.2 million, or $0.24 diluted earnings per share, for the quarter ended September 30, 2017 resulting in a 41.7-percent increase in diluted earnings per share.
- Net income for the first nine months of 2018 was $40.0 million, or $1.04 diluted earnings per share, compared to $25.5 million, or $0.75 diluted earnings per share, for the first nine months of 2017 resulting in a 38.7-percent increase in diluted earnings per share. This represents the highest year-to-date net income and diluted earnings per share as of September 30th in the Company’s 145-year history.
- Return on average assets was 1.26-percent for the third quarter of 2018 compared to 0.96-percent for the third quarter of 2017. Return on average assets for the first nine months of 2018 was 1.33-percent compared to 1.05-percent for the first nine months of 2017.
- Return on average equity was 10.87-percent for the third quarter of 2018 compared to 8.92-percent for the third quarter of 2017. Return on average equity was 11.43-percent for the first nine months of 2018 compared to 9.59-percent for the first nine months of 2017.
- Total loans increased by an annualized rate of 4.3-percent, or $31.8 million, during the three months ended September 30, 2018. Total loans, excluding loans held for sale and mortgage warehouse loans, increased by an annualized rate of 9.9-percent, or $70.5 million, during the three months ended September 30, 2018.
- Total loans increased by an annualized rate of 5.9-percent, or $124.3 million, during the first nine months of 2018. Total loans, excluding loans held for sale and mortgage warehouse loans, increased by an annualized rate of 7.3-percent, or $148.5 million, during the first nine months of 2018.
- Commercial loans increased by an annualized rate of 6.1-percent, or $25.6 million, during the third quarter of 2018.
- Residential mortgage loans increased by an annualized rate of 10.4-percent, or $16.6 million, during the third quarter of 2018.
- Consumer loans increased by an annualized rate of 22.1-percent, or $28.3 million, during the third quarter of 2018.
- Total deposits increased by an annualized rate of 11.5-percent, or $247.6 million, during the first nine months of 2018.
- Net interest income increased $5.9 million, or 21.1-percent, to $33.8 million for the three months ended September 30, 2018 compared to $27.9 million for the three months ended September 30, 2017. Net interest income increased $20.1 million, or 24.9-percent, to $100.7 million for the nine months ended September 30, 2018 compared to $80.6 million for the nine months ended September 30, 2017.
- Net interest margin was 3.67-percent for the three months ended September 30, 2018 compared to 3.71-percent for the three months ended September 30, 2017. Net interest margin was 3.74-percent for the nine months ended September 30, 2018 and 3.77-percent for the nine months ended September 30, 2017.
- Horizon’s tangible book value per share increased to $9.04 at September 30, 2018 compared to $8.48 and $8.25 at December 31, 2017 and September 30, 2017, respectively. This represents the highest tangible book value per share in the Company’s 145-year history.
Dwight added, “Total assets increased to over $4.1 billion at September 30, 2018 which reflects Horizon’s solid loan growth of $124.3 million since the beginning of the year. Total loans have increased at an annualized rate of 5.9-percent with increases in consumer loans of $75.1 million, mortgage loans of $44.5 million and commercial loans of $28.9 million. Commercial loan growth continues to be tempered by loan payoffs totaling approximately $134.5 million during 2018. Horizon originated approximately $257.0 million in commercial loans during the first nine months of 2018; however, only 63.4-percent, or $163.0 million, of these originations had been funded as of September 30, 2018. Our investments in the growth markets of Fort Wayne, Grand Rapids, Indianapolis and Kalamazoo experienced an increase in loan balances of $70.6 million, or an annualized rate of 18.6-percent, during the first nine months of 2018.”
Dwight concluded, “The impact of cost savings from our 2017 acquisitions of Lafayette Community Bancorp and Wolverine Bancorp, Inc., in addition to other operational leverage strategies have resulted in an improved efficiency ratio. Horizon’s efficiency ratio has decreased from 68.30-percent for the third quarter of 2017, which included merger expenses, to 60.34-percent for the third quarter of 2018.”
