Horizon Bancorp (IN) (HBNC) Reports Q3 2023 Earnings
Horizon Bancorp (IN) (NASDAQ:HBNC) reported a Q3 2023 net income of $16.2 million, down from $18.8 million in Q2 2023.
Loans totaled $4.36 billion at the end of the period, marking an 8.2% annualized increase during the quarter.
Net interest income was $42.1 million, compared to $46.2 million in the previous quarter.
Non-interest income expanded to $11.8 million from $11.0 million in the linked quarter.
Horizon Bancorp (IN) (NASDAQ:HBNC) released its Q3 2023 earnings report on October 25, 2023. The company reported a net income of $16.2 million or $0.37 per diluted share, compared to $18.8 million or $0.43 in the second quarter of 2023. The decrease in net income was attributed to a decrease in net interest income of $4.1 million, offset by growth in non-interest income of $833,000 and decreases in credit loss expense of $417,000, income tax expense of $168,000, and non-interest expense of $94,000.
Financial Performance
Loans totaled $4.36 billion at the end of the period, marking an 8.2% annualized increase during the quarter and 6.4% annualized since December 31, 2022. Commercial loan growth totaled $83.0 million, increasing by 13.1% annualized during the quarter and 6.6% annualized since December 31, 2022. Deposits remained resilient, totaling $5.7 billion at the period end, compared to $5.7 billion on June 30, 2023.
Income Statement Highlights
Net interest income was $42.1 million in the third quarter of 2023, compared to $46.2 million in the linked quarter which benefited from a swap termination fee of $1.5 million. Total non-interest income of $11.8 million was $833,000 higher in the third quarter of 2023 when compared to the second quarter of 2023, primarily due to a $615,000 increase in other income and a $577,000 increase in gain on sale of mortgage loans, offset by a decrease of $398,000 in interchange fees.
Capital and Liquidity
The capital resources of the Company and the Bank continued to exceed regulatory capital ratios for well capitalized banks at September 30, 2023. Stockholders equity totaled $693.4 million at September 30, 2023 and the ratio of average stockholders equity to average assets was 8.99% for the nine months ended September 30, 2023. On September 30, 2023, the Bank had approximately $1.64 billion in unused credit lines with various money center banks, including the FHLB and the Federal Reserve Bank.
Outlook
President and Chief Executive Officer Thomas M. Prame stated,
Horizon's third quarter performance demonstrated our diversified lending platform's ability to produce solid growth while successfully continuing to shift our loan mix to higher yielding assets. This strategy paired with the strength of our credit culture will continue to add value over time."
Explore the complete 8-K earnings release (here) from Horizon Bancorp (IN) for further details.
This article first appeared on GuruFocus.
