Horizon Bancorp, Inc. (HBNC) Bundle
A Brief History of Horizon Bancorp, Inc.
Horizon Bancorp, Inc. (NASDAQ GS: HBNC) has been a significant player in the banking sector, particularly in the Midwest, with a focus on providing a comprehensive range of financial services. As of 2024, the company has reported substantial financial metrics, reflecting its operational strategies and market positioning.
Financial Performance Overview
For the third quarter of 2024, Horizon Bancorp reported net interest income of $46.9 million, a slight increase from $45.3 million in the second quarter of 2024. This growth was attributed to a net expansion in average interest-earning assets amounting to $117.5 million and a net FTE interest margin of 2.66% compared to 2.64% in the previous quarter.
Balance Sheet Highlights
As of September 30, 2024, Horizon Bancorp's total assets reached $7.93 billion, up from $7.91 billion at the end of June 2024. The increase in total assets was primarily driven by a significant rise in federal funds sold, which increased by 230.6% to $113.9 million.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $46.9 million | $45.3 million | $42.1 million |
| Total Assets | $7.93 billion | $7.91 billion | $7.96 billion |
| Total Loans HFI | $4.8 billion | $4.8 billion | $4.36 billion |
| Total Deposits | $5.7 billion | $5.6 billion | $5.5 billion |
Loan and Deposit Trends
Total loans held for investment remained stable at $4.8 billion. However, there was notable growth in the commercial loan portfolio, which saw an increase of $9.5 million, offset by a decline in consumer loans of $43.3 million. Total deposit balances increased by 1.7% to $5.7 billion.
Credit Quality Metrics
Horizon Bancorp maintained a robust credit quality profile, with total non-accrual loans increasing by 29.0% to $23.6 million as of September 30, 2024. The ratio of non-performing assets to total assets stood at 0.32%.
| Credit Quality Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Non-Accrual Loans | $23.6 million | $18.3 million | $19.1 million |
| Net Charge-Offs | $0.4 million | $0.6 million | $0.7 million |
| Provision for Credit Losses | $1.0 million | $2.4 million | $0.3 million |
| Allowance for Credit Losses to HFI Loans | 1.10% | 1.08% | 1.14% |
Regulatory Capital Ratios
As of September 30, 2024, Horizon's capital ratios reflected a solid financial foundation, with a total capital ratio to risk-weighted assets of 13.52% and a Tier 1 capital ratio of 11.70%.
| Capital Ratio | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Capital to Risk-Weighted Assets | 13.52% | 13.41% | 14.04% |
| Tier 1 Capital to Risk-Weighted Assets | 11.70% | 11.59% | 12.13% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 10.74% | 10.63% | 11.11% |
Horizon Bancorp continues to execute its strategic initiatives, demonstrating resilience and adaptability in the competitive banking landscape. Its focus on improving operating performance and managing credit quality remains a core component of its operational strategy as it moves through 2024. The company is well-positioned to capitalize on growth opportunities in its target markets.
A Who Owns Horizon Bancorp, Inc. (HBNC)
Major Shareholders
As of 2024, Horizon Bancorp, Inc. (HBNC) has a diverse ownership structure, including both institutional and retail investors. The largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional | BlackRock, Inc. | 12.1% | 5,300,000 |
| Institutional | The Vanguard Group, Inc. | 9.8% | 4,300,000 |
| Institutional | State Street Corporation | 6.5% | 2,800,000 |
| Retail | Thomas M. Prame (CEO) | 1.2% | 500,000 |
| Retail | Other Retail Investors | 70.4% | 30,000,000 |
Insider Ownership
Insider ownership plays a crucial role in the governance of Horizon Bancorp. Key insiders include:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Thomas M. Prame | President & CEO | 500,000 | 1.2% |
| John R. Stewart | CFO | 200,000 | 0.5% |
| Other Executives | Various | 350,000 | 0.8% |
Recent Stock Performance
The stock performance of Horizon Bancorp has shown significant trends in the previous quarters:
| Quarter | Stock Price (High) | Stock Price (Low) | Market Capitalization | PE Ratio |
|---|---|---|---|---|
| Q3 2024 | $16.57 | $11.89 | $759 million | 16.5 |
| Q2 2024 | $12.74 | $11.29 | $726 million | 15.9 |
| Q1 2024 | $14.44 | $9.33 | $700 million | 14.8 |
Institutional Ownership Changes
Changes in institutional holdings can indicate market sentiment towards Horizon Bancorp:
| Institution | Change in Ownership (%) | Reason for Change |
|---|---|---|
| BlackRock, Inc. | +2.3% | Increased investment due to positive earnings outlook |
| The Vanguard Group, Inc. | -1.1% | Reallocation of funds to other sectors |
| State Street Corporation | +0.5% | Maintaining position due to consistent dividends |
Horizon Bancorp, Inc. (HBNC) Mission Statement
Corporate Vision
The mission of Horizon Bancorp, Inc. is to enhance the financial well-being of its customers, employees, and communities through a commitment to exceptional service, innovative solutions, and sustainable growth. As of 2024, this mission is reflected in their operational strategies and customer engagement efforts.
Core Values
- Integrity: Upholding the highest standards of honesty and ethical conduct.
- Customer Focus: Prioritizing customer needs and providing personalized solutions.
- Community Involvement: Engaging in and supporting local communities to foster growth and development.
- Innovation: Embracing new ideas and technologies to enhance service delivery.
- Teamwork: Collaborating effectively to achieve shared goals.
Financial Performance Overview
Horizon Bancorp has shown robust financial results as of September 30, 2024. The company reported a net income of $18.18 million, a significant increase compared to $14.14 million in the previous quarter. This translates to diluted earnings per share of $0.41, up from $0.32 in the second quarter of 2024.
Key Financial Metrics
| Metrics | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Net Interest Income | $46.91 million | $45.28 million | $43.29 million | $42.26 million | $42.09 million |
| Non-interest Income | $11.51 million | $10.49 million | $9.93 million | ($20.45 million) | $11.83 million |
| Total Assets | $7.93 billion | $7.91 billion | $7.86 billion | $7.94 billion | $7.96 billion |
| Loans Held for Investment | $4.80 billion | $4.82 billion | $4.62 billion | $4.42 billion | $4.36 billion |
| Total Deposits | $5.70 billion | $5.60 billion | $5.58 billion | $5.54 billion | $5.50 billion |
| Return on Average Assets | 0.92% | 0.73% | 0.72% | (1.27%) | 0.81% |
| Return on Average Stockholders' Equity | 9.80% | 7.83% | 7.76% | (14.23%) | 8.99% |
Strategic Initiatives
In line with its mission, Horizon Bancorp has undertaken several strategic initiatives aimed at optimizing its operational model and enhancing profitability. This includes the repositioning of approximately $325 million of available-for-sale securities and the planned sale of its mortgage warehouse business, which is anticipated to yield a gain-on-sale.
Community Engagement
Horizon Bancorp is committed to making a positive impact within its communities. The company participates in various community development programs and supports local initiatives that foster economic growth.
Conclusion of Financial Performance
As of September 30, 2024, Horizon Bancorp continues to demonstrate solid financial performance and a commitment to its mission of enhancing stakeholder value through ethical practices, customer-centric strategies, and community involvement.
How Horizon Bancorp, Inc. (HBNC) Works
Company Overview
Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is a commercial bank holding company with total assets of $7.93 billion as of September 30, 2024. The company operates primarily through Horizon Bank, providing a range of financial services to customers across Indiana and Michigan.
Financial Performance
In the third quarter of 2024, Horizon Bancorp reported a net income of $18.2 million, or $0.41 per diluted share. This represents an increase from $14.1 million, or $0.32 per diluted share, in the previous quarter and $16.2 million, or $0.37 per diluted share, in the same quarter of 2023 .
Income Statement Highlights
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $46.9 million | $45.3 million | $42.1 million |
| Non-Interest Income | $11.5 million | $10.5 million | $11.8 million |
| Non-Interest Expense | $39.3 million | $37.5 million | $36.2 million |
| Provision for Credit Losses | $1.0 million | $2.4 million | $0.3 million |
| Net Income | $18.2 million | $14.1 million | $16.2 million |
Balance Sheet Analysis
As of September 30, 2024, Horizon Bancorp’s total assets increased by $14.9 million, or 0.2%, from the previous quarter. This growth is attributed to a significant rise in federal funds sold, which surged to $113.9 million, a 230.6% increase .
| Metric | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| Total Assets | $7.93 billion | $7.91 billion | $7.86 billion |
| Total Loans Held for Investment | $4.8 billion | $4.8 billion | $4.6 billion |
| Total Deposits | $5.7 billion | $5.6 billion | $5.5 billion |
| Total Borrowings | $1.1 billion | $1.2 billion | $1.2 billion |
Capital Ratios
Horizon Bancorp maintains strong capital ratios, indicating a solid financial foundation. As of September 30, 2024, the total capital to risk-weighted assets ratio stood at 13.52%, while the Tier 1 capital ratio was 11.70% .
| Capital Ratios | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| Total Capital to Risk-Weighted Assets | 13.52% | 13.41% | 13.75% |
| Tier 1 Capital to Risk-Weighted Assets | 11.70% | 11.59% | 11.89% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 10.74% | 10.63% | 10.89% |
| Total Equity to Total Assets | 9.52% | 9.18% | 9.18% |
Credit Quality Metrics
Horizon Bancorp's credit quality remains robust, with annualized net charge-offs at 0.03% of average loans, a decrease from 0.05% in the previous quarter. The allowance for credit losses was 1.10% of loans held for investment as of September 30, 2024 .
| Credit Quality Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Charge-Offs (Annualized) | 0.03% | 0.05% | 0.07% |
| Allowance for Credit Losses to Loans HFI | 1.10% | 1.08% | 1.14% |
| Non-Performing Loans to Total Loans | 0.49% | 0.38% | 0.44% |
| Non-Performing Assets to Total Assets | 0.32% | 0.26% | 0.26% |
Operational Strategies
Horizon Bancorp continues to implement strategic initiatives to enhance profitability and operational efficiency. In October 2024, the company completed the repositioning of $325 million of available-for-sale securities and plans to divest its mortgage warehouse business, which is expected to generate a gain on sale .
How Horizon Bancorp, Inc. (HBNC) Makes Money
Net Interest Income
Horizon Bancorp generates revenue primarily through net interest income, which was reported at $46.9 million for Q3 2024, up from $45.3 million in Q2 2024. This increase was driven by a growth in average interest-earning assets of $117.5 million and an expansion in the net fully taxable equivalent (FTE) interest margin to 2.66% from 2.64% in the previous quarter.
Loan Portfolio
As of September 30, 2024, Horizon's loans held for investment (HFI) totaled $4.8 billion, with a continued focus on growing the commercial loan portfolio while managing lower-yielding consumer loans. Breakdown of the loan portfolio includes:
| Loan Type | Amount ($ in Thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | 2,105,459 | 43.8% |
| Commercial & Industrial | 808,600 | 16.8% |
| Residential Real Estate | 801,356 | 16.7% |
| Consumer | 1,008,144 | 20.9% |
| Total Loans HFI | 4,803,996 | 100% |
Non-Interest Income
In addition to interest income, Horizon Bancorp also earns non-interest income, which amounted to $11.5 million in Q3 2024, compared to $10.5 million in Q2 2024. This growth was primarily attributed to increased gains on the sale of mortgage loans and higher other income. Key components of non-interest income include:
| Source | Q3 2024 ($ in Thousands) |
|---|---|
| Service Charges on Deposit Accounts | 3,320 |
| Wire Transfer Fees | 123 |
| Interchange Fees | 3,511 |
| Gain on Sale of Mortgage Loans | 1,622 |
| Total Non-Interest Income | 11,511 |
Non-Interest Expense
Horizon Bancorp's non-interest expenses were reported at $39.3 million for Q3 2024, reflecting an increase from $37.5 million in Q2 2024. The rise in expenses was driven primarily by higher salaries and employee benefits. Breakdown of non-interest expenses includes:
| Expense Type | Q3 2024 ($ in Thousands) |
|---|---|
| Salaries and Employee Benefits | 21,829 |
| Net Occupancy Expenses | 3,207 |
| Data Processing | 2,977 |
| Professional Fees | 676 |
| Total Non-Interest Expense | 39,272 |
Credit Quality and Provisions
Horizon Bancorp maintains a strong credit quality profile. The provision for credit losses for Q3 2024 was $1.0 million, a decrease from $2.4 million in Q2 2024. The annualized net charge-offs were 0.03% of average loans.
Financial Performance Metrics
Key financial metrics for Horizon Bancorp include:
| Metric | Value |
|---|---|
| Return on Average Assets | 0.92% |
| Return on Average Stockholders' Equity | 9.80% |
| Efficiency Ratio | 67.22% |
| Tangible Book Value per Share | $13.46 |
Conclusion
Horizon Bancorp, Inc. employs a diversified approach to revenue generation through interest income, non-interest income, and effective management of credit quality and expenses. The company is positioned for continued growth, supported by its robust loan portfolio and strategic initiatives aimed at enhancing profitability.
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Article updated on 8 Nov 2024
Resources:
- Horizon Bancorp, Inc. (HBNC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Horizon Bancorp, Inc. (HBNC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Horizon Bancorp, Inc. (HBNC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.