The ongoing growth of Horizon Bancorp continued today with the financial institution, which has offices all across Michigan’s Great Southwest, reporting record earnings once again.
Horizon Bancorp, Inc., the holding company for Horizon Bank branches across the region, has today announced its unaudited financial results for the three-month and nine-month periods ended September 30, 2019, and points out that all share data has been adjusted to reflect Horizon’s three-for-two stock split which was effective June 15, 2018.
Craig Dwight, Chairman and CEO of Horizon, says, “Horizon’s 2019 third quarter and year-to-date performance resulted in record earnings and demonstrate that our long range strategic plan to improve efficiency through an increase in mass and scale is working.” He adds, “Third quarter 2019 earnings increased to $20.5 million, or $0.46 diluted earnings per share, when compared to prior year period earnings of $13.1 million, or $0.34 diluted earnings per share. Year-to-date earnings increased to $48.0 million, or $1.11 diluted earnings per share, compared to $40.0 million, or $1.04 diluted earnings per share, for the prior year period.”
Dwight notes, “Horizon’s growth story continues with total assets now reaching approximately $5.2 billion at September 30, 2019. In addition to the loans acquired from our acquisition of Salin Bank and Trust Company during the first quarter of 2019, which totaled approximately $568.9 million, we continue to experience year-to-date loan growth of $118.3 million from the markets of Fort Wayne, Grand Rapids, Indianapolis and Kalamazoo.”
Further delving into the numbers, Dwight concludes, “Horizon continues to maximize operational leverage through an increase in mass and scale as evident by the decrease in our adjusted efficiency ratio. Horizon’s adjusted efficiency ratio, excluding merger expenses, loss on sale of investment securities and death benefit on bank owned life insurance decreased to 54.89-percent for the third quarter of 2019 compared to 57.62-percent for the second quarter of 2019 and 60.17-percent for the third quarter of 2018. In addition, annualized non-interest expense to average assets, excluding merger expenses, fell to 2.34-percent for the third quarter of 2019 compared to 2.39-percent for the second quarter of 2019 and 2.48-percent for the third quarter of 2018. Our team continues to leverage new technologies and develop operational efficiencies. In addition, Horizon consolidated its two Midland, Michigan full-service branches into one location on September 6, 2019 in our continued efforts to improve branch efficiencies.”
Here are other points from the Horizon report, summarized:
- Net income for the quarter ended September 30, 2019 was $20.5 million, or $0.46 diluted earnings per share, compared to $13.1 million, or $0.34 diluted earnings per share, for the quarter ended September 30, 2018. This represents the highest quarterly net income and diluted earnings per share in the company’s history.
- Core net income for the quarter ended September 30, 2019 increased 54.4-percent to $20.3 million, or $0.45 diluted earnings per share, compared to $13.2 million, or $0.34 diluted earnings per share, for the same period in 2018. This represents the highest quarterly core net income and core diluted earnings per share in the company’s history.
- Net income for the first nine months of 2019 was $48.0 million, or $1.11 diluted earnings per share, compared to $40.0 million, or $1.04 diluted earnings per share, for the first nine months of 2018. This represents the highest year-to-date net income and diluted earnings per share as of September 30th in the company’s history.
- Core net income for the first nine months of 2019 was $52.1 million, or $1.21 diluted earnings per share, compared to $39.9 million, or $1.04 diluted earnings per share, for the first nine months of 2018. This represents the highest year-to-date core net income and core diluted earnings per share as of September 30th in the company’s history.
- Net interest margin for the quarter ended September 30, 2019 was 3.82-percent compared to 3.73-percent and 3.67-percent for the quarters ended June 30, 2019 and September 30, 2018, respectively. The increase in net interest margin from the second quarter of 2019 and third quarter of 2018 reflects an increase in the yield of interest-earning assets as loans continue to reprice upwards and a decrease in cost of borrowings, along with a stabilization in deposit pricing.
- Core net interest margin for the quarter ended September 30, 2019 was 3.67-percent compared to 3.61-percent and 3.59-percent for the quarters ended June 30, 2019 and September 30, 2018, respectively.
- Return on average assets was 1.60-percent for the third quarter of 2019 compared to 1.26-percent for the third quarter of 2018. Return on average assets was 1.33-percent for both the first nine months of 2019 and 2018.
- Core return on average assets for the third quarter of 2019 was 1.58-percent compared to 1.27-percent for the third quarter of 2018. Core return on average assets was 1.44-percent for the first nine months of 2019 compared to 1.32-percent for the first nine months of 2018.
- Return on average equity was 12.72-percent for the third quarter of 2019 compared to 10.87-percent for the third quarter of 2018. Return on average equity was 10.88-percent for the first nine months of 2019 compared to 11.43-percent for the first nine months of 2018.
- Core return on average equity for the third quarter of 2019 was 12.59-percent compared to 10.95-percent for the third quarter of 2018. Core return on average equity was 11.83-percent for the first nine months of 2019 compared to 11.41-percent for the first nine months of 2018.
- Horizon’s tangible book value per share increased to $10.31 at September 30, 2019 compared to $9.91 and $9.04 at June 30, 2019 and September 30, 2018, respectively. This represents the highest tangible book value per share in the company’s history.
- On July 16, 2019, Horizon’s Board of Directors authorized a stock repurchase program for up to 2,250,000 shares of Horizon’s issued and outstanding common stock, no par value. As of September 30, 2019, Horizon had repurchased a total of 99,407 shares at an average price per share of $16.04.
- Horizon consolidated its two Midland, Michigan full-service branches into one location on September 6, 2019.
