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Horizon Bancorp

Financials

Price	17.31	EPS	1
Shares	45	P/E	13
MCap	781	P/FCF	5
Net Debt	-91	EBIT	116
TEV	690	TEV/EBIT	6
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-02-28
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-09
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-11-09
10-Q	2018-06-30	Filed 2018-08-07
10-Q	2018-03-31	Filed 2018-05-07
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-11-08
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-02-28
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-06
10-K	2015-12-31	Filed 2016-02-29
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-04
10-K	2014-12-31	Filed 2015-03-13
10-Q	2014-09-30	Filed 2014-11-07
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-09
10-K	2013-12-31	Filed 2014-02-28
10-Q	2013-09-30	Filed 2013-11-07
10-Q	2013-06-30	Filed 2013-08-08
10-Q	2013-03-31	Filed 2013-05-08
10-K	2012-12-31	Filed 2013-03-12
10-Q	2012-09-30	Filed 2012-11-08
10-Q	2012-06-30	Filed 2012-08-08
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-03-12
10-Q	2011-09-30	Filed 2011-11-14
10-Q	2011-06-30	Filed 2011-08-12
10-Q	2011-03-31	Filed 2011-05-12
10-K	2010-12-31	Filed 2011-03-11
10-Q	2010-09-30	Filed 2010-11-12
10-Q	2010-06-30	Filed 2010-08-12
10-Q	2010-03-31	Filed 2010-05-13
10-K	2009-12-31	Filed 2010-03-12

Reports

8-K	2020-06-24
8-K	2020-06-17
8-K	2020-06-17
8-K	2020-06-17
8-K	2020-06-10
8-K	2020-05-07
8-K	2020-05-07
8-K	2020-04-29
8-K	2020-04-17
8-K	2020-03-06
8-K	2020-02-25
8-K	2020-01-29
8-K	2020-01-21
8-K	2020-01-21
8-K	2019-12-31
8-K	2019-10-23
8-K	2019-07-30
8-K	2019-07-24
8-K	2019-07-17
8-K	2019-07-11
8-K	2019-06-18
8-K	2019-06-13
8-K	2019-05-02
8-K	2019-05-02
8-K	2019-04-24
8-K	2019-03-26
8-K	2019-01-29
8-K	2019-01-14
8-K	2019-01-09
8-K	2018-12-20
8-K	2018-12-18
8-K	2018-10-29
8-K	2018-10-29
8-K	2018-09-26
8-K	2018-09-05
8-K	2018-07-31
8-K	2018-07-25
8-K	2018-05-17
8-K	2018-05-15
8-K	2018-05-03
8-K	2018-05-03
8-K	2018-04-25
8-K	2018-03-21
8-K	2018-01-24
8-K	2018-01-01

Horizon Bancorp Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow

hbnc-20200331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________

FORM 10-Q

____________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from________to

Commission file number 0-10792

____________________________

HORIZON BANCORP, INC.

(Exact name of registrant as specified in its charter)

____________________________


Indiana			35-1562417
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

515 Franklin Street, Michigan City, Indiana 46360

(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (219) 879-0211

Former name, former address and former fiscal year, if changed since last report: N/A

____________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange
on which registered

Common stock, no par value

HBNC

The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	x	Accelerated Filer	☐

Non-accelerated Filer	☐	Smaller Reporting Company	☐

Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 43,772,446 shares of Common Stock, no par value, at May 8, 2020.

Table of Contents

HORIZON BANCORP, INC.

FORM 10-Q

INDEX


PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Income	4

	Condensed Consolidated Statements of Comprehensive Income	5

	Condensed Consolidated Statements of Stockholders’ Equity	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	49

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	66

Item 4.	Controls and Procedures	66

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	67

Item 1A.	Risk Factors	67

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68

Item 3.	Defaults Upon Senior Securities	69

Item 4.	Mine Safety Disclosures	69

Item 5.	Other Information	69

Item 6.	Exhibits	69

Index to Exhibits			69

Signatures			71

Table of Contents

PART 1 — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

HORIZON BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Dollar Amounts in Thousands)


	March 31, 2020		December 31, 2019
	(Unaudited)
Assets
Cash and due from banks	$	86,458	$	98,831
Interest-earning time deposits	9,239		8,455
Investment securities, available for sale	900,476		834,776
Investment securities, held to maturity (fair value of $207,324 and $215,147)	199,467		207,899
Loans held for sale	6,245		4,088
Loans, net of allowance for loan losses of $48,440 and $17,667	3,658,859		3,619,174
Premises and equipment, net	92,785		92,209
Federal Home Loan Bank stock	22,447		22,447
Goodwill	151,238		151,238
Other intangible assets	25,723		26,679
Interest receivable	17,774		18,828
Cash value of life insurance	95,153		95,577
Other assets	85,461		66,628
Total assets	$	5,351,325	$	5,246,829
Liabilities
Deposits
Non-interest bearing	$	709,978	$	709,760
Interest bearing	3,172,293		3,221,242
Total deposits	3,882,271		3,931,002
Borrowings	704,613		549,741
Subordinated debentures	56,374		56,311
Interest payable	2,772		3,062
Other liabilities	74,453		50,690
Total liabilities	4,720,483		4,590,806
Commitments and contingent liabilities
Stockholders’ Equity
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares	—		—
Common stock, no par value, Authorized 99,000,000 shares
Issued 43,788,692 and 45,000,840 shares, Outstanding 43,763,623 and 44,975,771 shares	—		—
Additional paid-in capital	361,019		379,853
Retained earnings	260,501		269,738
Accumulated other comprehensive income	9,322		6,432
Total stockholders’ equity	630,842		656,023
Total liabilities and stockholders’ equity	$	5,351,325	$	5,246,829

See notes to condensed consolidated financial statements

Table of Contents

HORIZON BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited)

(Dollar Amounts in Thousands, Except Per Share Data)


	Three Months Ended March 31
	2020		2019
Interest Income
Loans receivable	$	44,958	$	39,623
Investment securities - taxable	2,898		3,122
Investment securities - tax exempt	3,798		2,628
Total interest income	51,654		45,373
Interest Expense
Deposits	7,716		6,876
Borrowed funds	2,238		3,621
Subordinated debentures	775		596
Total interest expense	10,729		11,093
Net Interest Income	40,925		34,280
Credit loss expense	8,600		364
Net Interest Income after Credit Loss Expense	32,325		33,916
Non-interest Income
Service charges on deposit accounts	2,446		1,877
Wire transfer fees	171		118
Interchange fees	1,896		1,361
Fiduciary activities	2,528		2,089
Gains on sale of investment securities (includes $339 and $15 for the three months ended March 31, 2020 and 2019, respectively, related to accumulated other comprehensive earnings reclassifications)	339		15
Gain on sale of mortgage loans	3,473		1,309
Mortgage servicing income net of impairment	25		606
Increase in cash value of bank owned life insurance	554		513
Death benefit on bank owned life insurance	233		—
Other income	398		824
Total non-interest income	12,063		8,712
Non-interest Expense
Salaries and employee benefits	16,591		14,466
Net occupancy expenses	3,252		2,772
Data processing	2,405		1,966
Professional fees	536		493
Outside services and consultants	1,915		3,530
Loan expense	2,099		1,949
FDIC insurance expense	150		160
Other losses	120		104
Other expense	4,081		4,298
Total non-interest expense	31,149		29,738
Income Before Income Taxes	13,239		12,890
Income tax expense (includes $71 and $3 for the three months ended March 31, 2020 and 2019, respectively, related to income tax expense from reclassification items)	1,584		2,074
Net Income	$	11,655	$	10,816
Basic Earnings Per Share	$	0.26	$	0.28
Diluted Earnings Per Share	0.26		0.28

See notes to condensed consolidated financial statements

Table of Contents

HORIZON BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollar Amounts in Thousands)


	Three Months Ended March 31
	2020		2019
Net Income	$	11,655	$	10,816
Other Comprehensive Income
Change in fair value of derivative instruments:
Change in fair value of derivative instruments for the period	(3,965)		(1,106)
Income tax effect	833		232
Changes from derivative instruments	(3,132)		(874)
Change in securities:
Unrealized appreciation for the period on AFS securities	7,992		11,694
Amortization from transfer of securities from available for sale to held to maturity securities	(30)		(38)
Reclassification adjustment for securities gains realized in income	(339)		(15)
Income tax effect	(1,601)		(2,445)
Unrealized gains on securities	6,022		9,196
Other Comprehensive Income, Net of Tax	2,890		8,322
Comprehensive Income	$	14,545	$	19,138

See notes to condensed consolidated financial statements

Table of Contents

HORIZON BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

(Dollar Amounts in Thousands, Except Per Share Data)


	Three Months Ended
	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balances, January 1, 2019	$	—	$	—	$	276,101	$	224,035	$	(8,144)	$	491,992
Net income	—		—		—		10,816		—		10,816
Other comprehensive income, net of tax	—		—		—		—		8,322		8,322
Amortization of unearned compensation	—		—		91		—		—		91
Exercise of stock options	—		—		117		—		—		117
Stock option expense	—		—		57		—		—		57
Stock issued stock plans	—		—		(125)		—		—		(125)
Stock issued in Salin acquisition	—		—		102,722		—		—		102,722
Cash dividends on common stock ($0.10 per share)	—		—		—		(4,524)		—		(4,524)
Balances, March 31, 2019	$	—	$	—	$	378,963	$	230,327	$	178	$	609,468

Balances, January 1, 2020	$	—	$	—	$	379,853	$	269,738	$	6,432	$	656,023
Net income	—		—		—		11,655		—		11,655
Other comprehensive income, net of tax	—		—		—		—		2,890		2,890
Impact of adoption of ASU No. 2016-13	—		—		—		(15,635)		—		(15,635)
Amortization of unearned compensation	—		—		200		—		—		200
Exercise of stock options	—		—		255		—		—		255
Stock option expense	—		—		50		—		—		50
Stock issued stock plans	—		—		297		—		—		297
Repurchase of outstanding stock	—		—		(19,636)		—

EX-31.1	hbnc-20200331exhibit311.htm
EX-31.2	hbnc-20200331exhibit312.htm
EX-32	hbnc-20200331exhibit32.htm

HBNC 10Q Quarterly Report

Horizon Bancorp Earnings 2020-03-31