Chesterton Tribune                                                                                   Adv.

Horizon Bancorp posts second quarter profit

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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.”

Other numbers:

•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 branch.

•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 well-capitalized banks.”

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.

 

 

Posted 8/11/2010

 

 

 

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