LAKE HAVASU CITY, Ariz.--(BUSINESS WIRE)--Horizon Bancorp, Inc. (OTC Pink: HRRB), the holding company for Horizon Community Bank, announced growth in total loans of 3.89%, inclusive of PPP influence, and 4.93.% excluding the effects of PPP for the quarter ended June 30, 2022. Total deposits and total assets contracted for the quarter ended June 30, 2022, by 3.01% and 5.47%, respectively. Net Income for the quarter was $1,160,806 and $5,148,026 for the 12 months ended June 30, 2022.
June 30, 2022 highlights include:
- Year-to-date loan growth, exclusive of PPP influence, is $18,758,539 and 7.45%
- Improved asset quality with non-performing assets ratio reduction to 0.07% and loans past due 30 days or greater at 0.01% of total loans
- Non-interest demand deposit representing 37% of total deposits
Ralph Tapscott, President and CEO stated, “This quarter is highlighted with reasonably strong loan growth and exceptional credit quality. Net interest income and net interest margin are rebounding with the higher yield curve and deposit rates have been effectively managed. Non-interest income, although still strong and diversified, is reflective of lower mortgage division revenue. Non-interest expense appears higher than this same period last year, but much of this is reflective of PPP influence and the associated underwriting. We have experienced some contraction in deposits, but that is not necessarily a bad thing. Liquidity remains strong, and regulatory capital has improved, with a June 30, 2022, tier 1 leverage ratio of 8.65%.”
Tapscott added, “As you may be aware, on March 9, 2022, Horizon Bancorp, Inc., Horizon Community Bank and Arizona Federal Credit Union (now known as Arizona Financial Credit Union) entered into a Purchase and Assumption Agreement, which provides for Arizona Financial Credit Union’s acquisition of substantially all of the assets of and assumption of substantially all of the liabilities of Horizon Community Bank. The press release announcing the parties entering into the Purchase and Assumption Agreement may be viewed on Horizon Community Bank’s website at www.horizoncommunitybank.com. The proposed transaction is subject to customary legal conditions, including regulatory. The parties have filed regulatory applications for the proposed transaction, some of which are currently pending. In addition, the shareholders of Horizon Bancorp, Inc. voted affirmatively on the proposed transaction at the annual meeting of shareholders on June 15, 2022.”
Credit quality metrics are shown in the following table and reflect appropriate risk management in the loan portfolio. The bank’s analysis indicates it maintains an ample allowance for loan and lease loss at 1.62% of total outstanding loans, and this is inclusive of PPP.
06/30/2022 |
03/31/2022 |
06/30/2021 |
||||||||||
30+ Days Delinquent / Loans |
|
.00 |
% |
|
1.03 |
% |
|
0.13 |
% |
|||
Non-Accrual Loans / Loans |
|
0.06 |
% |
|
0.07 |
% |
|
0.21 |
% |
|||
Other Real Estate Owned |
$ |
200,100 |
|
$ |
200,100 |
|
$ |
495,946 |
|
|||
Net Charge Offs/Loans |
|
-.096 |
% |
|
.01 |
% |
|
0.002 |
% |
|||
ALLL/Loans |
1.62%(1) |
|
1.58 |
% |
|
1.48 |
% |
|||||
| (1) | ALLL/Loans excluding PPP loans outstanding is 1.64% |
The Bank remains well capitalized under regulatory guidelines. The Bank’s regulatory capital ratios are further addressed in the following table –
06/30/2022 |
03/31/2022 |
06/30/2021 |
|||||||
Tier 1 Leverage Ratio |
8.65 |
% |
8.43 |
% |
7.78 |
% |
|||
Tier 1 Common Equity Ratio |
15.09 |
% |
15.74 |
% |
14.31 |
% |
|||
Tier 1 Capital Ratio |
15.09 |
% |
15.74 |
% |
14.31 |
% |
|||
Total Capital Ratio |
16.34 |
% |
16.99 |
% |
15.56 |
% |
|||
About the Company
Horizon Bancorp, Inc. (OTC: HRRB), the holding company for Horizon Community Bank has $522 million in total assets as of June 30, 2022, and is headquartered in Lake Havasu City, Arizona. It owns, as its sole subsidiary, Horizon Community Bank, a locally owned and operated bank with branches in Fort Mohave, Kingman, Lake Havasu City, Phoenix Metro, Parker and Quartzsite, Arizona, plus loan offices in Goodyear and Phoenix, Arizona. The Bank has 90 employees that provide high-touch, customized financial services to largely small business and commercial clients. The Bank operates a mortgage operation and is a leader in government guaranteed lending. Consumer services are also offered in the communities the bank serves. FDIC insured. Learn more at http://www.horizoncommunitybank.com.
Forward Looking Statements
This press release may include forward-looking statements about Horizon Bancorp, Inc. and Horizon Community Bank. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: Annualized, proforma and projected or estimated numbers in this release are illustrative only, are not forecasts and may not reflect actual results. All forward-looking statements are based on information available at the time of this release, and Horizon Bancorp, Inc. and Horizon Community Bank assume no obligation to update any forward-looking statements.
Unaudited Financial Information follows.
| Horizon Bancorp, Inc. | |||||||||||||||||||||
| Financial Information - Unaudited | |||||||||||||||||||||
| In thousands - except per share data | |||||||||||||||||||||
| For the Three Months | For the Six Months | ||||||||||||||||||||
| ended June 30 | ended June 30 | Year-End | |||||||||||||||||||
6/30/22 |
6/30/21 |
6/30/22 |
6/30/21 |
12/31/21 |
|||||||||||||||||
| Summary Income Data: | |||||||||||||||||||||
| Interest Income | $ | 4,395 |
|
$ |
|
4,200 |
|
$ | 8,401 |
|
$ | 8,763 |
|
$ | 17,601 |
|
|||||
| Interest Expense | 152 |
|
|
248 |
|
313 |
|
549 |
|
917 |
|
||||||||||
| Net Interest Income | 4,243 |
|
|
3,952 |
|
8,088 |
|
8,214 |
|
16,684 |
|
||||||||||
| Provision for loans losses | 0 |
|
|
0 |
|
0 |
|
75 |
|
75 |
|
||||||||||
| Non-interest Income | 1,143 |
|
|
1,560 |
|
2,610 |
|
2,467 |
|
5,098 |
|
||||||||||
| Non-interest expense | 3,785 |
|
|
3,679 |
|
7,708 |
|
6,998 |
|
14,451 |
|
||||||||||
| Income (loss) before income taxes | 1,601 |
|
|
1,834 |
|
2,990 |
|
3,608 |
|
7,256 |
|
||||||||||
| Provision(benefit) for income taxes | 439 |
|
|
451 |
|
774 |
|
885 |
|
1,600 |
|
||||||||||
| Net Income | $ | 1,162 |
|
$ |
|
1,383 |
|
$ | 2,216 |
|
$ | 2,723 |
|
$ | 5,655 |
|
|||||
| Per Share Data: | |||||||||||||||||||||
| Shares outstanding end-of-period | 4,300 |
|
|
4,132 |
|
4,300 |
|
4,132 |
|
4,145 |
|
||||||||||
| Earnings per common share | $ | 0.27 |
|
$ |
|
0.33 |
|
$ | 0.52 |
|
$ | 0.66 |
|
$ | 1.36 |
|
|||||
| Total shareholder's equity | $ | 31,329 |
|
$ |
|
35,588 |
|
$ | 31,329 |
|
$ | 35,588 |
|
$ | 37,539 |
|
|||||
| Book Value per share | $ | 7.29 |
|
$ |
|
8.61 |
|
$ | 7.29 |
|
$ | 8.61 |
|
$ | 9.06 |
|
|||||
| Selected Balance Sheet Data: | |||||||||||||||||||||
| Total assets | $ | 521,477 |
|
$ |
|
532,518 |
|
$ | 521,477 |
|
$ | 532,518 |
|
$ | 539,484 |
|
|||||
| Securities available-for-sale | 174,960 |
|
|
131,152 |
|
174,960 |
|
131,152 |
|
174,141 |
|
||||||||||
| Loans | 272,687 |
|
|
288,395 |
|
272,687 |
|
288,395 |
|
259,902 |
|
||||||||||
| Allowance for loan losses | 4,423 |
|
|
4,260 |
|
4,423 |
|
4,260 |
|
4,168 |
|
||||||||||
| Deposits | 474,878 |
|
|
469,660 |
|
474,878 |
|
469,660 |
|
471,069 |
|
||||||||||
| Other borrowings | 2,384 |
|
|
14,428 |
|
2,384 |
|
14,428 |
|
13,228 |
|
||||||||||
| Shareholder's Equity | 31,329 |
|
|
35,588 |
|
31,329 |
|
35,588 |
|
37,539 |
|
||||||||||
| Performance Ratios: | |||||||||||||||||||||
| Return on average assets (annualized) (%) | 0.87 |
% |
|
1.03 |
% |
0.82 |
% |
1.05 |
% |
16.01 |
% |
||||||||||
| Return on average shareholder's equity | |||||||||||||||||||||
| (annualized) (%) | 14.49 |
% |
|
15.65 |
% |
12.83 |
% |
15.91 |
% |
3.28 |
% |
||||||||||
| Shareholder's equity to assets (%) | 6.01 |
% |
|
6.19 |
% |
6.01 |
% |
6.68 |
% |
0.18 |
% |
||||||||||
| Net interest margin (%) | 3.58 |
% |
|
3.58 |
% |
3.13 |
% |
3.31 |
% |
3.34 |
% |
||||||||||
| Cost of funds | 0.08 |
% |
|
0.25 |
% |
0.12 |
% |
0.22 |
% |
1.06 |
% |
||||||||||
| Average assets | $ | 536,857 |
|
$ | $ |
501,179 |
|
$ | 543,635 |
|
$ | 520,050 |
|
$ | 532,005 |
|
|||||
| Efficiency ratio (%) | 70.28 |
% |
|
64.24 |
% |
72.05 |
% |
65.52 |
% |
66.64 |
% |
||||||||||
| Asset Quality Data: | |||||||||||||||||||||
| Nonaccrual loans | $ | 150 |
|
$ |
|
616 |
|
$ | 150 |
|
$ | 616 |
|
$ | 527 |
|
|||||
| Troubled debt restructurings | $ | 369 |
|
$ |
|
1,553 |
|
$ | 369 |
|
$ | 1,553 |
|
$ | 453 |
|
|||||
| Other real estate | $ | 200 |
|
$ |
|
466 |
|
$ | 200 |
|
$ | 466 |
|
$ | 31 |
|
|||||
| Nonperforming assets | $ | 350 |
|
$ |
|
1,082 |
|
$ | 350 |
|
$ | 1,082 |
|
$ | 558 |
|
|||||
| Nonperforming assets to total assets (%) | 0.07 |
% |
|
0.20 |
% |
0.07 |
% |
0.20 |
% |
0.10 |
% |
||||||||||
| Nonperforming loans to total loans (%) | 0.06 |
% |
|
0.21 |
% |
0.06 |
% |
0.21 |
% |
0.20 |
% |
||||||||||
| Reserve for loan losses to total loans (%) | 1.62 |
% |
|
1.48 |
% |
1.62 |
% |
1.48 |
% |
1.60 |
% |
||||||||||
| Reserve for loan losses to nonperforming loans (%) | 2948.52 |
% |
|
691.48 |
% |
2948.52 |
% |
691.48 |
% |
790.89 |
% |
||||||||||
| Reserve for loan losses to nonperforming assets (%) | 1263.65 |
% |
|
393.67 |
% |
1263.65 |
% |
393.67 |
% |
746.95 |
% |
||||||||||
| Net charge-offs for period | (272 |
) |
|
5 |
|
(255 |
) |
(6 |
) |
86 |
|
||||||||||
| Average Loans | $ | 272,047 |
|
$ |
|
286,385 |
|
$ | 265,064 |
|
$ | 286,986 |
|
$ | 280,232 |
|
|||||
| Ratio of net charge-offs to average loans (%) | -0.100 |
% |
|
0.002 |
% |
-0.096 |
% |
-0.002 |
% |
0.031 |
% |
||||||||||
| Regulatory Capital Ratios | |||||||||||||||||||||
| Horizon Community Bank: | |||||||||||||||||||||
| Tier 1 leverage ratio (%) | 8.65 |
% |
|
7.78 |
% |
8.65 |
% |
7.78 |
% |
8.14 |
% |
||||||||||
| Common Equity Tier 1 ratio (%) | 15.09 |
% |
|
14.31 |
% |
15.09 |
% |
14.31 |
% |
15.49 |
% |
||||||||||
| Tier 1 risk-based capital ratio (%) | 15.09 |
% |
|
14.31 |
% |
15.09 |
% |
14.31 |
% |
15.49 |
% |
||||||||||
| Total risk-based capital ratio (%) | 16.34 |
% |
|
15.56 |
% |
16.34 |
% |
15.56 |
% |
16.74 |
% |
||||||||||
