Horizon Bancorp(US:HBNC) Globenewswire·2025-01-22 21:05Core 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]