Horizon Bancorp, Inc, the holding company for multiple Horizon Bank branches around Michigan’s Great Southwest and Northwest Indiana has announced quarterly financial results for the fourth quarter and full year of 2018 revealing “the highest net income and diluted earnings per share in the company’s 145-year history.”
Horizon says its unaudited financial results for the three-month and twelve-month periods ended December 31, 2018 continued a strong tradition, noting, too, that all share data has been adjusted to reflect Horizon’s three-for-two stock split effective June 15, 2018.
Craig Dwight, Chairman and CEO of Horizon, says, “I am very pleased to announce Horizon Bancorp’s 2018 results. Our ability to generate organic growth through investments in growth markets, along with increased mass and scale, produced record earnings for 2018. Horizon’s 2018 diluted earnings per share of $1.38 is a 45.3-percent increase over our 2017 diluted earnings per share of $0.95. Net income increased $20.0 million, or 60.4-percent, when compared to 2017.”
These are items from the corporate summary shared with stockholders in Horizon:
- Net income for the year ended December 31, 2018 was $53.1 million, or $1.38 diluted earnings per share, compared to $33.1 million, or $0.95 diluted earnings per share for year-end 2017. This represents the highest annual net income and diluted earnings per share in the Company’s 145-year history.
- Core net income for the year 2018 increased 38.0-percent to $48.9 million, or $1.27 diluted earnings per share, compared to $35.5 million, or $1.02 diluted earnings per share, for the year of 2017.
- Net income for the fourth quarter of 2018 was $13.1 million, or $0.34 diluted earnings per share, compared to $7.6 million, or $0.20 diluted earnings per share, for the fourth quarter of 2017.
- Core net income for the fourth quarter of 2018 was $12.5 million, or $0.33 diluted earnings per share, compared to $10.1 million, or $0.27 diluted earnings per share, for the fourth quarter of 2017.
- Return on average assets was 1.31-percent for the year ended December 31, 2018 compared to 0.97-percent for the year ended December 31, 2017.
- Core return on average assets for the year ended December 31, 2018 was 1.21-percent compared to 1.04-percent for the year ended December 31, 2017.
- Total loans increased by an annualized rate of 7.4-percent, or $55.0 million, during the three months ended December 31, 2018.
- Total loans increased by a rate of 6.2-percent, or $176.1 million, during the year ended December 31, 2018. Total loans, excluding loans held for sale and mortgage warehouse loans, increased by a rate of 7.2-percent, or $198.5 million, during the year ended December 31, 2018.
- Commercial loans increased by an annualized rate of 5.4-percent, or $23.0 million, during the three months ended December 31, 2018. For the year ended December 31, 2018, commercial loans increased by a rate of 3.1-percent, or $51.7 million.
- Residential mortgage loans increased by an annualized rate of 10.3-percent, or $16.9 million, during the three months ended December 31, 2018. For the year ended December 31, 2018, residential mortgage loans increased at a rate of 9.6-percent, or $58.4 million.
- Consumer loans increased by an annualized rate of 9.9-percent, or $13.3 million, during the three months ended December 31, 2018. For the year ended December 31, 2018, consumer loans increased at a rate of 19.2-percent, or $88.5 million.
- Total deposits increased by a rate of 9.0-percent, or $258.4 million, during 2018.
- Net interest income increased $2.4 million, or 7.6-percent, to $33.8 million for the three months ended December 31, 2018 compared to $31.5 million for the three months ended December 31, 2017. Net interest income increased $22.5 million, or 20.0-percent, to $134.6 million for the year ended December 31, 2018 compared to $112.1 million for the year ended December 31, 2017.
- Net interest margin was 3.60-percent for the three months ended December 31, 2018 compared to 3.71-percent for the three months ended December 31, 2017. Net interest margin was 3.71-percent for the year 2018 and 3.75-percent for the year 2017.
- Horizon’s tangible book value per share increased to $9.43 at December 31, 2018 compared to $9.04 and $8.48 at September 30, 2018 and December 31, 2017, respectively. This represents the highest tangible book value per share in the company’s 145-year history.
- On October 29, 2018, Horizon announced the pending acquisition of Salin Bancshares, Inc. and its wholly-owned subsidiary, Salin Bank and Trust Company, headquartered in Indianapolis which is anticipated to close during February 2019.
Chairman & CEO Dwight says, “At December 31, 2018, Horizon’s total assets surpassed $4.2 billion, driven by loan growth since the beginning of the year. An increase in consumer loans of $88.5 million, mortgage loans of $58.4 million and commercial loans of $51.7 million resulted in a $176.1 million, or 6.3-percnet, increase in total loans. Horizon originated approximately $337.1 million in commercial loans during 2018; however, only 58.0-percent, or $195.6 million, of these originations were funded at the time of the closing of the loan. The markets of Fort Wayne, Grand Rapids, Indianapolis and Kalamazoo experienced an increase in loan balances of $116.4 million, or 20.8-percent, during 2018 due to our talented local teams’ commitment to these growth markets.”
Dwight also commented on the acquisitions of Lafayette Community Bancorp and Wolverine Bancorp, Inc. in 2017, saying that they, along with other operational leverage strategies, “Have resulted in an improved efficiency ratio during 2018. Horizon’s efficiency ratio has decreased from 65.28-percent during 2017, which included a higher amount of merger expenses, to 60.67-percent during 2018. The improvement in Horizon’s efficiency ratio is a result of good execution by our entire team of Horizon’s merger and integration plans.”
On October 29, 2018, Horizon entered into an agreement to acquire Salin and its wholly-owned subsidiary, Salin Bank in a cash and stock merger. That acquisition is expected to close here in February 2019, subject to regulatory and Salin shareholder approval. Salin Bank is the third largest privately held bank in Indiana, with 20 banking centers in 10 Indiana counties, serving Columbus, Delphi, Edinburgh, Fishers, Flora, Fort Wayne, Galveston, Gas City, Kokomo, Lafayette, Logansport, Marion, West Lafayette and Indianapolis. As of September 30, 2018, Salin had total assets of approximately $918.4 million.
On the acquisition, Dwight says, “We are excited about the pending merger with Salin, as it provides entry into the attractive growth markets of Fort Wayne and Columbus, Indiana while also complementing our current Indiana locations. Salin Bank’s presence in the dynamic markets of Indianapolis and Lafayette, Indiana will add to Horizon’s current footprint. In addition, Salin has a talented team who will add depth and experience to our current sales network. Horizon’s strategic plan calls for continued expansion in the States of Indiana and Michigan with an emphasis on strong core deposit growth, investment in growth markets and to add mass and scale to gain additional efficiencies. Horizon’s pending merger with Salin is in alignment with our strategic plan.”
