Chesterton Tribune



Horizon Bancorp posts record profit

Back To Front Page

Horizon Bancorp is reporting a net income in 2013 of $19.9 million or $2.17 diluted earnings per share, compared to $19.5 million in 2012, the highest annual net income in the company’s history.

“We are extremely pleased to announce record 2013 earnings for the 14th consecutive year,” Horizon Chair and CEO Craig Dwight said. “This feat was accomplished despite a significant slowdown in residential mortgage activity during the second half of 2013. Our balanced approach of focusing on all four core banking revenue sources--business banking, retail banking, residential mortgage lending, and investment management--proved invaluable to achieving these record results and will continue to be a critical component of our future success.”

“Throughout 2013, we continued to operate in a sluggish economy with highly competitive dynamics for quality asset growth,” Dwight added. “Given the environment, we aggressively sought ways to maximize growth opportunities while remaining disciplined and vigilant in our approach. By investing in good people, entering new markets, and seeking strategic partnerships we continued to lay the foundation for future success while attaining record financial performance in the process.”

“As anticipated, the rise in interest rates slowed residential mortgage lending activity during the second half of 2013, affecting both our residential mortgage origination and mortgage warehouse revenue streams,” Dwight said. “Despite this slowdown, we made significant strides growing our commercial loan portfolio, low cost deposits, and assets under management in our investment group.”

Other results:

* In 2013, commercial loans grew 9.7 percent to $505.2 million.

* Non-interest bearing deposits grew 10.5 percent to $231.1 million.

* Assets under management reached $899 million as of Dec. 31.

* Non-performing loans were reduced by $4.2 million, or 18.7 percent, in the fourth quarter of 2013, allowing the company to realize a negative provision for the quarter of $997,000.

* Net interest income, after provisions for loan losses, for 2013 was $59.5 million, compared to $54.7 million for 2012, primarily reflecting commercial loan growth which helped offset lower mortgage warehouse revenue.

* Non-interest income declined 5.2 percent to $25.9 million for 2013, compared with $27.3 million for 2012, primarily reflecting a decrease in gain on sale of mortgage loans of $5.3 million, partially offset by an increase in service charges on deposit accounts, fees from debit and credit card interchange services and mortgage servicing income.

* Return on average assets was 0.93 percent for the fourth quarter and 1.13 percent for the year ended Dec. 31.

* Return on average common equity was 10.44 percent for the fourth quarter and 12.86 percent for the year ended Dec. 31.

* On Nov. 13, Horizon announced the acquisition of SCB Bancorp Inc. and its wholly-owned subsidiary, Summit Community Bank, headquartered in East Lansing, Mich. The transaction is expected to be completed in the second quarter of 2014, subject to regulatory and SCB Bancorp’s shareholder approval.

“We view the partnership with SCB Bancorp as an excellent opportunity to bring a top notch local banking team, strong customer base and a diverse economic market to the Horizon organization,” Dwight noted. “The SCB acquisition, coupled with our recent investments in markets such as Indianapolis and Lake County, Ind., as well as Grand Rapids, Mich., provides a tremendous foundation for growth in 2014 and beyond.”

“We are delighted to close out Horizon’s 140th year by achieving record results, which were only possible as a result of the hard work and dedication of our outstanding group of employees,” Dwight concluded. “We intend to build on this past success by remaining focused on our four balanced revenue streams, targeting growth in Indiana and Michigan, improving productivity and building shareholder value.”

Horizon Bancorp is a locally owned, independent, commercial bank holding company serving Northern and Central Indiana and Southwest Michigan through its commercial banking subsidiary Horizon Bank, NA. Its common stock is traded on the NASDAQ Global Market under the symbol HBNC.


Posted 1/23/2014