Horizon Bancorp(US:HBNC)2025-03-14 20:06Financial Performance - As of December 31, 2024, Horizon Bank had total assets of $7.8 billion and total deposits of $5.6 billion[21]. - In 2024, revenues from loans accounted for 81.0% of total consolidated revenue, while revenues from investment securities accounted for 15.5%[23]. - Horizon has experienced financial growth through strategic mergers and acquisitions, enhancing its market presence[20]. - The company has experienced financial growth through a combination of organic expansion and strategic acquisitions[20]. Market Position - Horizon holds a market share of 58.25% in LaPorte County, making it the largest of 8 institutions in that area[32]. - In Carroll County, Horizon is the largest institution with a market share of 29.52% among 6 institutions[32]. - Horizon ranks 4th in Johnson County with a market share of 9.80% among 22 institutions[32]. - In Michigan, Horizon is the 2nd largest in Midland County and the 4th largest in Berrien County[33]. Employee and Operational Structure - Horizon employs 841 full-time and 21 part-time employees across all locations as of December 31, 2024[28]. - The company has a focus on developing employee skills and career goals, emphasizing internal promotions[27]. - Horizon operates 71 full-service offices in northern and central Indiana and southern and central Michigan[21]. Regulatory Environment - The company is subject to extensive regulation by the Federal Reserve and the Indiana Department of Financial Institutions[34][36]. - Horizon has qualified as a financial holding company, allowing it to engage in a broader range of financial activities[40]. - The company must maintain a common equity Tier 1 capital to risk-based assets ratio of 4.5% to meet federal capital standards[57]. - Horizon is required to act as a source of financial strength for its subsidiary bank in times of financial distress[42]. - Horizon is subject to the Sarbanes–Oxley Act, which imposes new requirements for audit committees and increased disclosure obligations[91]. - Horizon has incurred higher operating costs due to compliance with the Dodd–Frank Act, which are expected to continue in the foreseeable future[99]. Capital Adequacy - As of December 31, 2024, Horizon Bank's total capital ratio was 13.91%, exceeding the required 8.00% for capital adequacy purposes[72]. - Horizon Bank's Tier 1 capital ratio was 12.00%, above the minimum requirement of 6.00%[72]. - The common equity Tier 1 capital ratio for Horizon Bank was 11.00%, surpassing the required 4.50%[72]. - The leverage ratio for Horizon Bank was 8.88%, exceeding the minimum requirement of 4.00%[72]. - The total risk-based capital ratio for Horizon Bank was 12.64%, well above the 8.00% minimum[72]. - The Bank could declare dividends of approximately $54.5 million to Horizon without prior approval as of December 31, 2024[77]. - Horizon Bank was categorized as "well capitalized," meeting all regulatory capital requirements[81]. Competition - The company faces high competition from various financial institutions, including commercial banks, credit unions, and emerging FinTech start-ups[29]. - Horizon's business is not materially seasonal and does not rely on a small group of customers[23]. Stock Information - Horizon's common stock is traded on the NASDAQ Global Select Market under the symbol HBNC[19]. - Horizon's common stock is listed on NASDAQ under the symbol "HBNC" and is subject to NASDAQ rules for listed companies[90]. Deposit Insurance - The FDIC insures deposits up to $250,000 per depositor, with a long-term goal for the designated reserve ratio of 2% of estimated insured deposits[49][50]. - Assessment rates for deposit insurance premiums for small banks like Horizon range from 5 to 9 basis points[51].