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Growth & Acquisition Fuel Solid 3Q Earnings for Horizon Bancorp

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When you assemble a “balanced strategy of organic growth” with “well-executed acquisitions,” you end up with another solid quarter of financial earnings. That’s the nutshell assessment of Horizon Bancorp’s third quarter results posted at mid-week, with net income up nearly 24-percent from a year ago.

Horizon Bancorp has announced unaudited financial results for the three-month and nine-month periods ended September 30, 2017, with all share data adjusted to reflect Horizon’s three-for-two stock split which became effective on November 14, 2016.

Net income for the third quarter of 2017 increased 23.8-percent to $8.2 million or $0.36 diluted earnings per share compared to $6.6 million or $0.30 diluted earnings per share for the third quarter of 2016.

Craig Dwight is Chairman and CEO at Horizon, which has multiple branches throughout Michigan’s Great Southwest. Dwight says, “During the third quarter of 2017, Horizon’s balanced strategy of organic growth and well-executed acquisitions resulted in another solid quarter of earnings. Core net income for the third quarter of 2017 increased 10.3-percent to $9.2 million when compared to the same period of 2016, while core net income for the first nine months of 2017 increased 22.5-percent to $25.4 million.”

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Dwight says, that the third quarter additionally saw Horizon close the acquisition of Lafayette Community Bancorp adding an experienced team of bankers to take advantage of future opportunities in the growth market of Lafayette, Indiana. He adds, “We are extremely proud of the incredible work ethic of Horizon’s employees who day in and day out give their best effort to move the Company forward.”

Net income, excluding acquisition-related expenses, gain on sale of investment securities and purchase accounting adjustments, for the third quarter of 2017 increased 10.3-percent to $9.2 million or $0.41 diluted earnings per share compared to $8.4 million or $0.39 diluted earnings per share for the same period of 2016.

Net income for the first nine months of 2017 was $25.5 million or $1.13 diluted earnings per share compared to $18.3 million or $0.94 diluted earnings per share for the same period in 2016.

Core net income for the first nine months of 2017 increased 22.5-percent to $25.4 million or $1.13 diluted earnings per share compared to $20.7 million or $1.07 diluted earnings per share for the same period of 2016.

Return on average assets was 0.96% for the third quarter of 2017 compared to 0.80% for the same period in 2016.

Commercial loans, excluding acquired commercial loans, increased by an annualized rate of 12.8-percent, or $103.1 million, during the first nine months of 2017.

Consumer loans, excluding acquired consumer loans, increased by an annualized rate of 27.2-percent, or $81.2 million, during the first nine months of 2017.

Horizon’s tangible book value per share rose to $12.38 at September 30, 2017, compared to $11.48 at December 31, 2016.

On September 1, 2017, Horizon closed the acquisition of Lafayette Community Bancorp and its wholly-owned subsidiary, Lafayette Community Bank, headquartered in Lafayette, Indiana. The system integration of Lafayette was successfully completed on September 22, 2017, as reported earlier here on Moody on the Market.com.

Additionally, on October 17, 2017, Horizon closed the acquisition of Wolverine Bancorp, Inc. and its wholly-owned subsidiary, Wolverine Bank, headquartered in Midland, Michigan, also detailed here earlier. The system integration of Wolverine is scheduled for November 2017.

Chairman & CEO Dwight says, our growth markets of Fort Wayne, Grand Rapids, Indianapolis and Kalamazoo, combined to produce total loan growth of $37.0 million during the third quarter of 2017 and $120.1 million during the first nine months of 2017. As a result of this growth, commercial loans increased at an annualized rate of 11.1-percent during the third quarter and 12.9-percent for the first nine months.”

Dwight concluded, “We are pleased to finalize the acquisitions of Lafayette and Wolverine over the last two months. Our systems integration of Lafayette was completed during the month of September and was another smooth integration. We believe the same will be true for our systems integration of Wolverine that we expect to complete in November. With the addition of the experienced and talented teams from Lafayette and Wolverine, we believe Horizon is positioned well to seize upon each markets growth opportunities.”