Horizon Bancorp, Inc. releases 3rd Quarter 2021 financial highlights, including net earnings of $1,590,000 or $0.38 per share, and quarterly earnings per share up 46.15% over third quarter of 2020.
Lake Havasu City, AZ- November 1, 2021 – Horizon Bancorp, Inc. (OTC Pink: HRRB), the holding company for Horizon Community Bank, announced net income for the quarter ended September 30, 2021 of $1,590,000 or $0.38 per share, up 14.97% over second quarter 2021 earnings, and up 45.47% over earnings for the quarter ended September 30, 2020.
September 30, 2021 highlights include:
- Third quarter 2021 net earnings improvement of 45.47% over same quarter last year
- Book value per share of $8.87, a 3.02% increase over prior quarter and 12.56% over prior year
- Conventional loan growth (excluding PPP) down 1.44% for the quarter
- Improved asset quality with non-performing assets ratio reduction to 0.16%
- Average quarterly cost of funds reduced to 0.15%
- Non-interest demand deposit representing nearly 37% of total deposits
Ralph Tapscott, President and CEO stated “Overall we are pleased with the quarterly performance. Earnings are strong, asset quality is favorable and trending in the right direction, and our cost of funds is well managed. This quarter’s anomaly was a reduction in non-PPP loan funding, despite a strong second quarter. We were plagued with loan prepayments, through asset or business sales and competitive rate refinances. Additionally, due most to labor shortages and supply chain issues, the pace of our funding of construction financing has slowed over the past 12 months. We are pleased with our generation of non-interest income, and this is largely generated through service charges, treasury management, our SBA department, and our mortgage department. Looking into 2022, we are in-process of renegotiating several major contracts, that we believe will meaningfully reduce non-interest expense. The Arizona economies have performed well throughout the pandemic, but we are now seeing supply chain and personnel related issues. Our allowance for loan and lease loss is more than ample, given our analysis, and this has not required any significant funding this year. We have, however, expensed approximately $455,000 to further write down other real estate.”
“The bank’s strong PPP performance, in both originations and forgiveness, has resulted in all but $14,665,000 yet to be forgiven, or approximately $80,000,000 having been forgiven in the past 15 months. The administrative aspect of this line of business is essentially completed and will continue to reduce through year-end. The quarterly reduction in non-PPP loans was further aggravated during the quarter. Gross loan production for the quarter was $33,700,000, which included $5,300,000 of SBA loans and the guaranteed portion of these were subsequently sold in the secondary market. Our unfunded construction commitments stand at $21,482,000, and these are funding at a slower pace than expected. That being said, we are looking for improved production with a loan pipeline of $78,800,000. Loan pricing, especially in the metro markets, is extremely competitive. We have largely curtailed active deposit seeking, until those liabilities can be effectively deployed into loans.”
Credit quality metrics are shown in the following table and reflect improvement year over year and are favorable relative to our peers. Other real estate has been dramatically reduced through both sales and write downs. The bank maintains an ample allowance for loan and lease loss at 1.59% of total outstanding loans, and this is inclusive of PPP.
|30+ Days Delinquent / Loans||0.19%||0.13%||0.12%|
|Non-Accrual Loans / Loans||0.22%||0.21%||0.39%|
|Other Real Estate Owned||$300,809||$465,946||$1,344,296|
|Net Charge Offs/Loans||-0.002%||0.002%||0.08%|
- ALLL/Loans excluding PPP loans outstanding is 1.69%
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||8.02%||7.78%||7.04%|
|Tier 1 Common Equity Ratio||15.08%||14.31%||11.92%|
|Tier 1 Capital Ratio||15.08%||14.31%||11.92%|
|Total Capital Ratio||16.34%||15.56%||13.17%|
“In addition to monitoring the environment, our focus is on our core business, slowing deposit growth, enhancing loan and fee production, further developing our treasury platform, and using technology to further enhance efficiencies,” stated Tapscott.
About the Company
Horizon Bancorp, Inc. (OTC: HRRB), the holding company for Horizon Community Bank has $550 million in total assets as of September 30, 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 88 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.