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.”
* 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
“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.