Horizon Bancorp(HBNC)

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Horizon Bancorp (HBNC) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-01-23 01:31
Core Insights - Horizon Bancorp reported revenue of $24.17 million for Q4 2024, a year-over-year increase of 10.8%, but fell short of the Zacks Consensus Estimate of $61.53 million, resulting in a surprise of -60.72% [1] - The company's EPS for the quarter was $0.36, compared to $0.33 a year ago, but also missed the consensus estimate of $0.39, leading to an EPS surprise of -7.69% [1] Financial Performance Metrics - Efficiency Ratio was reported at 185.9%, significantly higher than the average estimate of 67.7% from three analysts [4] - Net Interest Margin stood at 3%, exceeding the average estimate of 2.8% from three analysts [4] - Annualized net charge-offs of average total loans were 0.1%, matching the average estimate from two analysts [4] - Average Balance of Total Interest Earning Assets was $7.40 billion, slightly below the average estimate of $7.42 billion from two analysts [4] - Gain on sale of mortgage loans was $1.07 million, lower than the estimated $1.16 million from three analysts [4] - Total non-interest income was reported at -$28.95 million, significantly below the average estimate of $11.02 million from three analysts [4] - Net Interest Income was $53.13 million, surpassing the average estimate of $50.48 million from three analysts [4] - Wire transfer fees were $0.12 million, slightly above the average estimate of $0.11 million from two analysts [4] - Mortgage servicing income net of impairment was $0.38 million, compared to the average estimate of $0.42 million from two analysts [4] - Service charges on deposit accounts were $3.28 million, slightly below the average estimate of $3.37 million from two analysts [4] - Other income was reported at $0.34 million, lower than the average estimate of $0.54 million from two analysts [4] - Fiduciary activities generated $1.31 million, compared to the average estimate of $1.50 million from two analysts [4] Stock Performance - Horizon Bancorp shares returned -2.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]
Horizon Bancorp (HBNC) Lags Q4 Earnings and Revenue Estimates
ZACKS· 2025-01-23 00:25
Core Viewpoint - Horizon Bancorp reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.39 per share, but showing an increase from $0.33 per share a year ago, indicating a -7.69% earnings surprise [1][2] Financial Performance - The company posted revenues of $24.17 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 60.72%, compared to $21.81 million in the same quarter last year [2] - Over the last four quarters, Horizon Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Horizon Bancorp shares have lost about 1% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The stock is currently rated Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.38 on revenues of $60.57 million, and for the current fiscal year, it is $1.67 on revenues of $251.97 million [7] - The outlook for the industry, particularly the Banks - Northeast sector, is favorable, ranking in the top 24% of over 250 Zacks industries [8]
Horizon Bancorp, Inc. Reports Fourth Quarter 2024 Results and Successful Execution of Several Key Strategic Initiatives
Globenewswire· 2025-01-22 21:05
Core Insights - Horizon Bancorp reported a net loss of $10.9 million for Q4 2024, compared to a net income of $18.2 million in Q3 2024 and a net loss of $25.2 million in Q4 2023, primarily due to a $39.1 million pre-tax loss on the sale of investment securities [2][3][4] - The company achieved a net interest income of $53.1 million in Q4 2024, marking an increase from $46.9 million in Q3 2024, driven by a 31 basis point increase in net interest margin to 2.97% [4][9] - Total loans increased to $4.91 billion as of December 31, 2024, reflecting a growth of $108.6 million from the previous quarter, with a notable 22.4% annualized growth rate in commercial loans [4][20] - Total deposits decreased by $126.4 million to $5.60 billion, primarily due to a decline in time deposits [4][21] - The company completed the repositioning of $332.2 million of available-for-sale securities during Q4 2024, resulting in a pre-tax loss but allowing for reinvestment into higher-yielding loans [4][19] Financial Performance - For the twelve months ended December 31, 2024, net income was $35.4 million, or $0.80 per diluted share, compared to $28.0 million, or $0.64 per diluted share for the same period in 2023 [3] - Non-interest loss for Q4 2024 was $29.0 million, significantly down from a non-interest income of $11.5 million in Q3 2024, largely due to the loss on the sale of investment securities [15] - Non-interest expenses rose to $44.9 million in Q4 2024, up from $39.3 million in Q3 2024, driven by increased salaries and employee benefits [16] Balance Sheet Highlights - Total assets decreased by $126.3 million to $7.80 billion as of December 31, 2024, primarily due to the use of proceeds from the sale of investment securities to pay down higher-cost time deposits [18] - The allowance for credit losses as a percentage of loans held for investment was 1.07% at December 31, 2024, down from 1.10% at September 30, 2024 [12][26] - Tangible common equity totaled $598.1 million at December 31, 2024, with a tangible common equity to tangible assets ratio of 7.83% [24] Credit Quality - Credit quality remained strong, with annualized net charge-offs of 0.05% of average loans during Q4 2024, compared to 0.03% in Q3 2024 [11][26] - Total non-performing assets increased to $27.4 million, or 0.35% of total assets, reflecting a slight increase from 0.32% in the previous quarter [25][26] Strategic Initiatives - The company is focused on restructuring its expense base to enhance efficiency in 2025, having completed several major initiatives in Q4 2024 [2][4] - Horizon is in the process of selling its mortgage warehouse division, which was completed on January 17, 2025, with gains expected to be recognized in Q1 2025 [5]
Curious about Horizon Bancorp (HBNC) Q4 Performance? Explore Wall Street Estimates for Key Metrics
ZACKS· 2025-01-20 15:21
Core Insights - Horizon Bancorp (HBNC) is expected to report quarterly earnings of $0.39 per share, reflecting an 18.2% increase year-over-year [1] - Analysts forecast revenues of $61.53 million, indicating a significant increase of 182.1% compared to the previous year [1] - There has been no revision in the consensus EPS estimate over the past 30 days, suggesting stability in analyst projections [1] Earnings Estimates and Metrics - The 'Efficiency Ratio' is projected to be 67.7%, a significant improvement from 180.4% reported in the same quarter last year [4] - 'Average Balance - Total interest earning assets' is expected to reach $7.42 billion, up from $7.24 billion a year ago [4] - 'Net Interest Income' is forecasted at $50.48 million, compared to $42.26 million in the same quarter last year [5] - 'Service charges on deposit accounts' are estimated to be $3.37 million, an increase from $3.09 million year-over-year [5] - 'Interchange fees' are expected to reach $3.53 million, up from $3.22 million in the same quarter last year [6] Market Performance - Shares of Horizon Bancorp have decreased by 3.9% over the past month, contrasting with a 0.4% decline in the Zacks S&P 500 composite [7] - With a Zacks Rank 2 (Buy), HBNC is anticipated to outperform the overall market in the near future [7]
Horizon Bancorp (HBNC) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
ZACKS· 2025-01-15 16:06
Company Overview - Horizon Bancorp (HBNC) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.39, reflecting an 18.2% increase [3] - Revenues are anticipated to reach $61.53 million, marking a significant increase of 182.1% from the previous year [3] Earnings Expectations - The earnings report is scheduled for January 22, 2025, and the actual results will be crucial in determining the stock's near-term price movement [2] - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for Horizon Bancorp is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +4.24% [10] Historical Performance - Horizon Bancorp has a strong track record, having beaten consensus EPS estimates in the last four quarters, including a +10.81% surprise in the most recent quarter [12][13] Industry Context - In the broader Zacks Banks - Northeast industry, Pathward Financial (CASH) is also expected to report earnings, with an EPS estimate of $1.14, reflecting a year-over-year increase of 7.6% [17] - Pathward's revenue is projected to be $172.98 million, up 6.3% from the previous year, but it currently has a negative Earnings ESP of -0.88% [18]
Down -11.51% in 4 Weeks, Here's Why You Should You Buy the Dip in Horizon Bancorp (HBNC)
ZACKS· 2025-01-10 15:35
Core Viewpoint - Horizon Bancorp (HBNC) has faced significant selling pressure, resulting in an 11.5% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 typically indicating oversold conditions [2]. - HBNC's current RSI reading is 20.49, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound [5]. Group 2: Fundamental Indicators - There has been a consensus among sell-side analysts to raise earnings estimates for HBNC, resulting in a 0.5% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - HBNC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7].
Horizon Bancorp(HBNC) - 2024 Q4 - Annual Results
2025-04-01 20:37
Earnings Release and Conference Call - Horizon Bancorp, Inc. will release its financial results for Q4 2024 after market close on January 22, 2025 [4] - Management will host a conference call to discuss Q4 2024 financial results on January 23, 2025, at 7:30 a.m. CT [4] - The press release regarding Q4 2024 earnings and conference call is attached as Exhibit 99.1 [5]
Horizon Bancorp, Inc. Announces Conference Call to Review Fourth Quarter and Full Year 2024 Results on January 23
Globenewswire· 2025-01-03 21:15
Core Viewpoint - Horizon Bancorp, Inc. will host a conference call on January 23, 2025, to discuss its fourth quarter and full year 2024 financial results, with the news release published on January 22, 2025 [1]. Group 1: Conference Call Details - The live conference call will take place at 7:30 a.m. CT (8:30 a.m. ET) on January 23, 2025, with access numbers provided for participants from the U.S., Canada, and international locations [2]. - A telephone replay of the call will be available approximately one hour after the conference call ends, accessible until January 31, 2025, with specific dialing instructions for different regions [3]. Group 2: Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with $7.9 billion in assets, serving customers in the Midwest through digital tools and physical branches in Indiana and Michigan [4]. - The company offers a range of retail banking services, including secured consumer lending, personal banking, and wealth management solutions, with commercial lending making up over half of its total loans [4].
Will Horizon Bancorp (HBNC) Beat Estimates Again in Its Next Earnings Report?
ZACKS· 2025-01-03 18:16
Earnings Performance and Predictions - Horizon Bancorp has a history of beating earnings estimates, with an average surprise of 7.02% over the last two quarters [5] - For the most recent quarter, the company reported earnings of $0.41 per share, surpassing the expected $0.37 per share, resulting in a 10.81% surprise [6] - In the previous quarter, Horizon Bancorp reported $0.32 per share, beating the consensus estimate of $0.31 per share, a surprise of 3.23% [6] Earnings ESP and Zacks Rank - Horizon Bancorp currently has a positive Earnings ESP of +4.24%, indicating analysts' bullish outlook on the company's earnings prospects [7] - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a high likelihood of another earnings beat [7] - Stocks with a positive Earnings ESP and a Zacks Rank 3 or better have a 70% chance of producing a positive earnings surprise [2] Analyst Estimates and Predictive Power - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [3] - A positive Earnings ESP increases the odds of an earnings beat, while a negative value reduces predictive power but does not necessarily indicate a miss [7] - Utilizing the Earnings ESP Filter can help identify stocks with high potential for earnings surprises before quarterly reports [4]
Horizon Bancorp(HBNC) - 2024 Q3 - Quarterly Report
2024-11-12 21:16
Net Income and Earnings - Net income increased by $2.0 million to $18.2 million, or $0.42 per share, for the three months ended September 30, 2024, compared to $16.2 million, or $0.37 per share, for the same period in 2023[173] - Net income declined by $6.9 million to $46.3 million, or $1.06 per share, for the nine months ended September 30, 2024, compared to $53.2 million, or $1.22 per share, for the same period in 2023[174] - Net income (GAAP) for September 30, 2024, was $18.180 million, up from $14.140 million in June 2024 and $13.991 million in March 2024[221] Net Interest Income and Margin - Net interest income increased by $4.8 million, or 11.5%, for the three months ended September 30, 2024, driven by a 25 basis point increase in the net FTE interest margin to 2.66%[174] - The net FTE interest margin increased by 25 basis points to 2.66% for the three months ended September 30, 2024, due to a favorable mix shift in average interest-earning assets and funding mix[175] - Net interest income increased by $2.0 million to $135.5 million for the nine months ended September 30, 2024, compared to the same period in 2023[179] - Net FTE interest margin increased by 1 basis point to 2.60% for the nine months ended September 30, 2024[179] - Net FTE interest margin (Non-GAAP) was 2.66% for the three months ended September 30, 2024[177] - Net FTE interest margin (non-GAAP) for September 30, 2024, was 2.66%, compared to 2.64% in June 2024 and 2.50% in March 2024[219] - Net interest income (GAAP) for September 30, 2024, was $46.910 million, up from $45.279 million in June 2024 and $43.288 million in March 2024[219] Interest Rates and Sensitivity - A 100 basis points rise in interest rates would decrease net interest income by $7.9 million (3.5%), while a 100 basis points fall would increase net interest income by $2.8 million (1.3%)[226] - The company's net interest income is projected to decrease by $17.7 million (7.9%) with a 200 basis points rise in interest rates[226] - A 100 basis points rise in interest rates is expected to reduce net interest income by $7.9 million (3.5%)[226] - A 100 basis points fall in interest rates is projected to increase net interest income by $2.8 million (1.3%)[226] - A 200 basis points fall in interest rates is expected to decrease net interest income by $2.7 million (1.2%)[226] - The company uses earnings simulation models to assess net interest income sensitivity to interest rate changes over 12- and 24-month periods[225] - Deposit beta assumptions in the simulation model range from 12% to 80% based on underlying products[225] - The company's interest-bearing liabilities are projected to reprice faster than interest-earning assets for the next 100 basis points of declining interest rates[225] Non-Interest Income and Expense - Non-interest expense growth and a decline in non-interest income contributed to the decrease in net income for the nine months ended September 30, 2024[174] - The increase in net interest income for the three months ended September 30, 2024 was partially offset by an increase in non-interest expense compared to the year-ago period[173] - Total non-interest income declined by $0.3 million for the three months ended September 30, 2024, compared to the same period in 2023[186] - Total non-interest income for the nine months ended September 30, 2024, was $31.9 million, down from $32.4 million in the same period in 2023[184] - Non-interest expense increased by $3.1 million for the three months ended September 30, 2024, and $6.9 million for the nine months ended September 30, 2024, driven by higher salaries, outside services, and other expenses[191] - Salaries and employee benefits expense increased by $1.8 million for the three months ended September 30, 2024, and $3.7 million for the nine months ended September 30, 2024, due to hiring efforts and legacy benefits program expenses[192][193] Loans and Deposits - Total loans HFI increased by $383.5 million, or 8.8%, to $4.8 billion as of September 30, 2024, led by organic commercial loan growth[205] - Total deposit balances increased by $62.1 million, or 1.1%, to $5.7 billion as of September 30, 2024, with a focus on core commercial and consumer deposits[206] - Total borrowings decreased by $87.9 million, or 6.5%, to $1.3 billion as of September 30, 2024, due to repayment of Federal Home Loan Bank advances[207] - Loans receivable averaged $4,775.8 million with an average rate of 6.32% for the three months ended September 30, 2024[177] - Interest-bearing deposits averaged $3,386.2 million with an average rate of 2.14% for the three months ended September 30, 2024[177] Credit Quality and Allowance for Credit Losses - The ACL balance increased to $52.9 million, or 1.10% of period-end loans HFI, up from $50.0 million at December 31, 2023[210] - Total non-accrual loans increased by $3.9 million, or 19.6%, to 0.49% of total loans HFI as of September 30, 2024[211] - Net charge-offs for the three months ended September 30, 2024, were $0.4 million, or 3 basis points annualized of average loans[212] - Total non-performing assets increased by $3.8 million, or 17.4%, to 0.32% of total assets as of September 30, 2024[211] - Provision for credit losses on loans increased by $1.0 million for the three months ended September 30, 2024, and $4.2 million for the nine months ended September 30, 2024, driven by loan growth and changes in economic forecasts[196][197] Investment Securities and Other Assets - Investment securities available for sale decreased by $6.1 million to $541.2 million as of September 30, 2024, compared to December 31, 2023[209] - Securities held to maturity decreased by $57.3 million to $1.9 billion as of September 30, 2024[209] - Federal Home Loan Bank stock averaged $53.8 million with an average rate of 11.88% for the three months ended September 30, 2024[177] - The Bank had approximately $1.52 billion in unused credit lines with various money center banks as of September 30, 2024[215] Equity and Capital Ratios - Stockholders' equity totaled $754.8 million as of September 30, 2024, compared to $718.8 million at December 31, 2023[216] - Tangible common equity totaled $588.5 million at September 30, 2024, with a ratio of tangible common equity to tangible assets of 7.58%[216] - The dividend payout ratio was 45.3% for the first nine months of 2024, compared to 39.3% for the same period in 2023[216] - Total tangible common equity (non-GAAP) for September 30, 2024, was $588.544 million, up from $559.544 million in June 2024 and $553.285 million in March 2024[222] - Tangible common equity to tangible assets (non-GAAP) for September 30, 2024, was 7.58%, compared to 7.22% in June 2024 and 7.20% in March 2024[222] - Tangible book value per common share (non-GAAP) for September 30, 2024, was $13.46, up from $12.80 in June 2024 and $12.65 in March 2024[223] - Return on average tangible common equity (ROACE) (non-GAAP) for September 30, 2024, was 12.65%, compared to 10.18% in June 2024 and 10.11% in March 2024[221] Risks and Accounting Estimates - The company's critical accounting estimates include the allowance for credit losses, goodwill and intangible assets, mortgage servicing rights, hedge accounting, and valuation measurements[172] - The company identified risks such as changes in interest rates, inflation, and the impact of cryptocurrencies on deposit disintermediation and payment system income[169] - The company highlighted potential risks from cyber terrorism, data security breaches, and the rising costs of effective cybersecurity[170] - The company noted the risks of expansion through mergers and acquisitions, including unexpected credit quality problems and difficulty integrating acquired operations[170] Internal Controls and Reporting - The company's disclosure controls and procedures were effective as of September 30, 2024, ensuring timely and accurate reporting[228] - Horizon's disclosure controls and procedures were evaluated as effective as of September 30, 2024[228] - No material changes in internal control over financial reporting were identified during the fiscal quarter ended September 30, 2024[229] Interest Income and Expense Details - Total interest earning assets averaged $7,330.3 million with an average rate of 5.04% for the three months ended September 30, 2024[177] - Total interest bearing liabilities averaged $5,961.9 million with an average rate of 2.93% for the three months ended September 30, 2024[177] - Net FTE interest income (non-GAAP) was $48.9 million for the three months ended September 30, 2024[177] - Net interest income was $46.9 million for the three months ended September 30, 2024[177] - Total interest income increased by $10.8 million for the three months ended September 30, 2024, compared to the same period in 2023, driven by higher loan interest income[183] - Net interest income rose by $4.8 million for the three months ended September 30, 2024, compared to the same period in 2023, despite a $3.2 million decrease due to rate changes[183] - Loans receivable interest income increased by $12.5 million for the three months ended September 30, 2024, compared to the same period in 2023, with a significant contribution from rate changes[183] - Interest-bearing deposits expense increased by $5.5 million for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to rate changes[183] - Federal Home Loan Bank stock interest income increased by $989,000 for the three months ended September 30, 2024, compared to the same period in 2023[183] - Interest income (GAAP) for September 30, 2024, was $90.888 million, showing an increase from $86.981 million in June 2024 and $85.264 million in March 2024[219] Service Charges and Fees - Service charges on deposit accounts increased to $9.7 million for the nine months ended September 30, 2024, compared to $9.1 million in the same period in 2023[184] - Service charges on deposit accounts increased by $0.2 million for the three months ended September 30, 2024, and $0.5 million for the nine months ended September 30, 2024, compared to the same periods in 2023[187] - Interchange fees increased by $0.3 million for the three months ended September 30, 2024, and $0.8 million for the nine months ended September 30, 2024, driven by growth in qualified debit card volume[188] - Mortgage servicing income decreased by $0.2 million for the three months ended September 30, 2024, and $0.7 million for the nine months ended September 30, 2024, due to higher amortization expense of mortgage servicing rights[189] - Cash value of bank-owned life insurance decreased by $0.7 million for the three months ended September 30, 2024, and $2.1 million for the nine months ended September 30, 2024, due to policy surrenders in Q4 2023[190] Total Assets and Liabilities - Total average assets for the nine months ended September 30, 2024, were $7.82 billion, slightly lower than the $7.87 billion in the same period in 2023[181] - Net FTE interest margin (Non-GAAP) remained stable at 2.60% for the nine months ended September 30, 2024, compared to 2.59% in the same period in 2023[181]