Chesterton Tribune



Horizon Bancorp sets quarterly record

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Horizon Bancorp is reporting the highest quarterly net income in the company’s history: $5.3 million or 58 cents diluted earnings per share in the first quarter of 2013, compared to $4.6 million or 59 cents in the year-ago period.

Diluted earnings per share decreased by 1 cent due to the additional shares issued in the Heartland Bancshares acquisition and lower mortgage warehouse lending, Horizon said in a statement released on Wednesday.

“Record first-quarter earnings demonstrated the contribution of new assets acquired in our acquisition of Heartland Bancshares Inc. in mid-2012 and full realization of the transaction’s synergies,” Horizon President and CEO Crag Dwight said. “In addition, we have been particularly pleased with growth in our commercial lending relationship business, which has generated $25.7 million in organic loan growth in the past six months, led by our Kalamazoo, Mich., and Indianapolis locations. As our commercial loans continue to grow our commercial team is generating new deposits and fee income from business banking services by expanding relationships.”

Non-interest bearing deposits increased to $217.2 million on March 31, compared to $138.6 million in the year-ago, “reflecting growth in the number of banking relationships with small businesses and the acquisition of Heartland,” the statement said.

Interest-bearing transaction accounts rose to $778 million in the first quarter, compared to $769.8 million in the third quarter and $641.1 million in the year-ago.

Residential mortgage lending activity generated $3.1 million in income in the first quarter from the gain on sale of mortgage loans, an increase of $832,000 from the year-ago, a decrease of $896,000 from the fourth quarter.

“The quality of loans we are originating has consistently facilitated the sale of longer-term, lower-interest fixed rate mortgages to the secondary market,” Dwight said. “This has driven valuable non-interest income and enabled us to manage the risk profile of our loan portfolio.”

Non-performing loans totaled $23.7 million on March 31, down slight from $23.8 million on Dec. 31 and up slightly from $21.1 million on March 31, 2012. “The increase from March 31, 2012 was due to the Heartland acquisition,” the company said. Excluding Heartland loans, non-performing loans increased to $178.3 million on March 31, from $16.5 million on Dec. 31, 2012.

“At the heart of the company’s success are Horizon’s dedicated, experienced banking teams, whom constantly strive to provide exceptional service and sensible advice to our customers,” Dwight said. “Although economic conditions, a low-interest rate environment, and intense competition for quality loans represent challenges, our employees have risen to the occasion.”

Horizon Bancorp is an independent bank holding company serving Northern and Central Indiana and Southwest Michigan through its commercial banking subsidiary, Horizon Bank. Visit the company on line at

Its common stock is traded on the NASDAQ Global Market under the symbol HBNC.


Posted 4/19/2013