Horizon Bancorp, Inc. releases 4Q earnings, impressive 77 percent income growth

In February 1, 2018

Lake Havasu City, AZ-February 1, 2018 – Horizon Bancorp, Inc. (OTC Pink:HRRB), the holding company for Horizon Community Bank, announced a net income increase of 77 percent for the year ended December 31, 2017 over the same period, prior year. Net income through 12/31/17 totaled $2,950,876, an improvement of $1,288,387 over the year ended 2016. Net Income in 2017 included a credit to the income tax expense of $351,616 due to the recognition of deferred tax assets and the accrual of current income tax expense.

“Our fourth quarter and year performance reflects improvements in Interest Income on Loans, Total Interest Income, Net Interest Income and Noninterest Income over last year,” stated President/CEO Jerry Ernst. “Our balance sheet and loan growth in the fourth quarter contributed to our net interest income and our significant government guaranteed business lending contributed to a portion of our overall increase in net income in 2017.”

Its 2017 highlights include:

19.3 percent twelve month noninterest deposit growth
10.8 percent twelve month total asset growth
11.1 percent twelve month loan growth
Established loan production offices in Goodyear, AZ and Henderson, NV

Net Recoveries for the Year allowed for lower loan loss provisions and an increase in the Allowance for Loan and Lease Losses.

About the Company
Holding company Horizon Bancorp, Inc. (OTC:HRRB) has $257 million in assets 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, Lake Havasu City, Mesa, Parker and Quartzsite, Arizona, plus loan offices in Kingman and Goodyear, Arizona and Henderson, Nevada. It has almost 80 employees and provides high-touch, customized commercial financial services to those in the healthcare, transportation, real estate and technology industries, as well as general commercial and consumer services. FDIC insured. 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. 4Q17 Results
and Horizon Community Bank consolidated
Financial Highlights

Dollars in Thousands, Unaudited
	12/31/2017	9/30/2017	12/31/2016
Gross Loans	$192,825	$186,346	$173,597
Loan Loss Reserve	$2,777	$2,668	$2,434
Total Assets	$262,618	$257,286	$236,964

Noninterest demand	$62,370	$57,970	$52,286
Total Deposits	$227,886	$223,652	$204,101
Securities sold under repurchase agreements	$4,083	$3,993	$6,896
FHLB Advance	$1,500	$1,500	$1,500
Holding Company Debt (capital to the bank)	$3,179	$2,385	$2,000


Shareholder Equity	$23,471	$22,603	$20,459
	12 months	9 months	12 months
Operations	12/31/2017	9/30/2017	12/31/2016
Interest Income on Loans	$10,136	$7,404	$8,866
Total Interest Income	$11,040	$8,062	$9,488
Interest Expense	$1,124	$813	$969
Net Interest Income	$9,916	$7,249	$8,519
Provision	$315	$197	$428
Noninterest Income	$3,686	$3,134	$2,453
Noninterest Expense	$10,573	$8,141	$8,844
Income Taxes	-$352	$0	$0
Net at Bank Level	$3,066	$2,045	$1,700
	qtr ended	qtr ended	qtr ended
Bank Regulatory capital ratios	12/31/2017	9/30/2017	12/31/2016
Tier 1 capital ratio	13.000%	12.891%	12.348%
Total capital ratio	14.252%	14.143%	13.599%

Holding company net income in dollars	$2,950,876	$1,942,476	$1,662,489
ROAA	1.16%	1.03%	0.73%
ROAE	13.65%	12.24%	8.39%
BVPS	5.69	5.48	5.46
EPS	0.72	0.47	0.44
shares outstanding	4,125,182	4,125,182	3,745,126

BVPS, EPS affected by 10% stock dividend paid 6/30/17.
See company audited FS 12/31/16 for more information.