Horizon Bancorp posted a net income in the second quarter of 2010 of $2.5
million or 65 cents diluted earnings per share, a 40.4 percent increase in
net income from the first quarter,
“The second quarter was extremely busy and rewarding for the Horizon team as
we successfully closed on the American Trust & Saving Bank purchase and
assumption and completed our related data processing conversion,” Horizon
Bancorp CEO Dwight Craig said. “In addition, the improvement in earnings
speaks well of our competent team of dedicated and seasoned bankers given
these tough economic times.”
•The purchase of American Trust & Savings closed on May 28 and added $107.8
million in purchased assets and $110.3 million in assumed liabilities. The
expensed costs of that acquisition: $555,000 in the second quarter and
$664,000 for the first half of the year. The expected return: between 27
cents and 33 cents in diluted earnings per share on an annual basis.
•Horizon did say that it will be closing two branches in the third quarter:
one in Harbert, Mich.; the other, a branch acquired from American Trust &
Savings at an unspecified location, sited within three miles of an existing
•Horizon “continued to experience steady residential loan mortgage loan
activity during the second quarter, providing $1.7 million of income from
the gain on sale of mortgage loans.”
•Its quarterly provision for loan losses decreased by approximately $233,000
from the first-quarter allowance.
•Net loans charged off declined to $2.6 million in the second quarter from
$3.1 million in the first quarter.
•Horizon’s balance of Other Real Estate Owned and repossessed assets
increased in the second quarter by approximately $677,000, to $2.9 million.
•Its non-performing loans increased by around $4.8 million in the second
quarter, chiefly due to a $4.6 million loan secured by a hotel being place
on non-accrual during the quarter. “The increase in non-performing loans
over the past year can be attributed to the continued slow economy and
continued high local unemployment causing lower business revenues and
increased consumer bankruptcies.”
•Horizon’s “capital ratios continue to be above the regulatory standards for
Horizon Bancorp is a locally owned, independent commercial bank hold company
serving Northern Indiana and Southwest Michigan. Its common stock trades on
the NASDAQ Global Market under the symbol HBNC.