Horizon Bancorp(HBNC) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $23.9 million, or$ 0.54 per diluted share, compared to a net loss of $10.9 million in Q4 2024 and$ 14.0 million in Q1 2024[5]. - Non-interest income totaled $16.5 million in Q1 2025, a significant recovery from a non-interest loss of$ 29.0 million in Q4 2024[14]. - Net income for Q1 2025 was $23,943,000, compared to a net loss of$ 10,882,000 in Q4 2024, marking a significant recovery[40]. - Basic earnings per share for Q1 2025 was $0.55, compared to a loss of$ 0.25 in Q4 2024[32]. - Return on average tangible common equity (ROACE) for Q1 2025 was 15.79%, a significant improvement from -7.35% in Q4 2024[40]. Loan and Deposit Growth - Total loans held for investment increased by 5% linked quarter annualized, with organic commercial loan growth of $103.3 million, or 14% annualized[7]. - Core deposits grew by$ 62.5 million during the period, representing a 24% annualized increase in non-interest-bearing balances[7]. - Total loans held for investment increased to $4,909,815 thousand, a 1% increase from Q4 2024 and a 6% increase from Q1 2024[35]. - Total deposits rose to$ 5,765,783 thousand, reflecting a 3% increase from Q4 2024 and Q1 2024[35]. - Commercial real estate loans grew by 3% from Q4 2024 to $2,262,910 thousand and by 14% compared to Q1 2024[35]. Interest Income and Margin - Total interest income for Q1 2025 was$ 89,175,000, a decrease of 4.1% from $93,350,000 in Q4 2024[32]. - Net interest income after credit loss expense was$ 50,891,000, compared to $51,956,000 in Q4 2024, reflecting a decline of 2.1%[32]. - The net FTE interest margin (non-GAAP) improved to 3.04% in Q1 2025, up from 2.97% in Q4 2024[39]. - Total interest-earning assets averaged$ 7,234,724 thousand with a net interest margin of 5.11% for Q1 2025[36]. - Net interest income for Q1 2025 was reported at $52,267 thousand, compared to$ 43,288 thousand in Q1 2024[36]. Asset and Equity Changes - Total assets decreased by $175.5 million, or 2.2%, to$ 7.6 billion as of March 31, 2025, primarily due to the sale of the mortgage warehouse portfolio[18]. - Stockholders' equity increased to $776,061,000 from$ 763,582,000 in Q4 2024, an increase of 1.3%[34]. - The ratio of total stockholders' equity to total assets was 10.18% as of March 31, 2025, with book value per common share increasing to $17.72[21]. - Total tangible common equity (non-GAAP) rose to$ 611,443 million, compared to $598,148 million in the previous quarter, reflecting a quarter-over-quarter increase of 1.08%[43]. - Tangible book value per common share (non-GAAP) reached$ 13.96, an increase from $13.68 in the prior quarter, indicating a growth of 2.05%[43]. Expense Management - The efficiency ratio improved to 57.16% in Q1 2025 from 185.89% in Q4 2024, reflecting a more efficient expense base[8]. - Total non-interest expense was$ 39.3 million in Q1 2025, down from $44.9 million in Q4 2024, primarily due to a$ 3.2 million decrease in salaries and employee benefits[16]. - The provision for loan losses was $1,376,000, up from$ 1,171,000 in Q4 2024, indicating a rise of 17.5%[32]. Credit Quality - The company recorded a provision for credit losses of $1.4 million in Q1 2025, compared to$ 1.2 million in Q4 2024[11]. - Annualized net charge-offs were 0.07% of average loans in Q1 2025, compared to 0.05% in Q4 2024[12]. - Total non-accrual loans increased by $3.0 million, or 12%, to 0.59% of total loans HFI as of March 31, 2025[22]. - Total non-performing assets rose to$ 31,427,000, reflecting a 14.8% increase from the previous quarter and a 55% increase year-over-year[37]. - The allowance for credit losses increased to $52,654,000, a 1% increase from the previous quarter[37]. Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with$ 8 billion in assets, serving customers through digital tools and branches in Indiana and Michigan[27].