Horizon Bancorp, Inc. releases 1st Quarter 2021 financial highlights, including deposit growth of 53.09% and earnings per share growth of 57.97% year-over-year.
Lake Havasu City, AZ- April 27, 2021-Horizon Bancorp, Inc. (OTC Pink: HRRB), the holding company for Horizon Community Bank, announced growth in total deposits of 53.09% for the 12-month period ended March 31, 2021. Growth in total loans of 13.14% for the 12-month period ended March 31, 2021. Net income for the quarter was $1,339,281 and $4,489,560 for 12 months ended March 31, 2021. Linked quarterly net income is up 17.56%. Quarterly earnings per share were $0.32, up 14.29% from the prior quarter.
March 31, 2021 highlights include:
- 67% 12-month net income growth
- 09% 12-month deposit growth
- 67% 12-month noninterest deposit growth
- 57% 12-month total asset growth
- 14% 12-month loan growth
“We now have substantiated evidence supporting the resilience of our local and regional economies as the recovery continues. Life is normalizing but far from normal. Our confidence in credit quality and culture is strong and is manifested in numerous credit quality metrics. The CARES Act associated market liquidity is a phenomenon we have never experienced, and it creates challenges to smart growth. We now see demand for the Paycheck Protection Program (PPP) decrease substantially, and we know our team did a fantastic job in providing a financial lifeline to the community,” stated Horizon Bancorp’s President and CEO, Ralph Tapscott.
Loan interest income is up substantially and it is influenced by PPP participation. Linked quarter interest income is up 8.80%. The bank has significantly improved its cost of funds, both in absolute and relative terms. The resulting net interest margin declined 28 basis points, to 3.58%, for the quarter ended March 31, 2021. The bank’s operating model has both a mortgage and government lending component. This helps enhance noninterest income, but there are offsetting noninterest expense components. Linked quarter noninterest income decreased 13.29%, to $906,903, on March 31, 2021. Quarterly noninterest expense reflects an 11.32% reduction, to $3,320,322, on March 31, 2021. The resulting change in linked quarter net income was an increase of 17.56%, to $1,339,281, on March 31, 2021. Return on average assets and return on average equity improved for the quarter to 1.07% and 15.65%, respectively.
Total loans outstanding declined by $10,382,752, to $282,836,810, for the quarter ended March 31, 2021. Conversely, deposits grew by $62,299,805, to $476,187,271, for this same period. Credit quality metrics are shown in the following table, and reflect improvements quarter over quarter and year over year in nonaccrual loans and nonperforming assets. The bank maintains an ample allowance for loan and lease loss at 1.51% of total outstanding loans, and this is inclusive of PPP. The bank is fortunate to have a strong core deposit base, and 37.80% of total deposits are noninterest deposits and the one-year growth has been 96.67%.
|30+ Days Delinquent / Loans||0.00%||0.15%||0.91%|
|Non-Accrual Loans / Loans||0.31%||0.39%||0.45%|
|Other Real Estate Owned||$904,657||$1,226,312||$1,468,292|
|Net Charge Offs/Loans||-0.01%||-0.01%||0.01%|
- ALLL/Loans excluding PPP loans outstanding is 1.78%
The Bank remains well capitalized under regulatory guidelines. The Bank’s regulatory capital ratios are further addressed in the following table –
|Tier 1 Leverage Ratio||8.15%||8.38%||8.84%|
|Tier 1 Common Equity Ratio||14.39%||13.74%||11.58%|
|Tier 1 Capital Ratio||14.39%||13.74%||11.58%|
|Total Capital Ratio||15.64%||14.99%||12.83%|
“Pandemic concerns and CARES Act influence are expected to reduce and the economies are expected to further rebound. We expect deposit growth to slow or normalize, credit quality metrics to remain stable, and new credit production to ramp up over the remainder of 2021,” stated Tapscott.
About the Company
Horizon Bancorp, Inc. (OTC: HRRB), the holding company for Horizon Community Bank has $538 million in total assets as of March 31, 2021 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 92 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.
Ralph Tapscott, President/CEO, firstname.lastname@example.org
Ross Johnson, EVP/CFO, email@example.com