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Mar 31, 2022
Horizon Bancorp Q1 2022 Earnings Report
Reported record profitability and EPS of $0.54, driven by higher fees, pre-tax, pre-provision net income, and organic growth in loans.
Key Takeaways
Horizon Bancorp reported a record net income of $23.6 million for Q1 2022, representing a 15.4% increase year-over-year, with diluted EPS of $0.54, up from $0.46 in the prior year period. The company experienced growth in total, commercial, and consumer loans, and pre-tax, pre-provision net income rose to $25.7 million.
Net income grew to a record $23.6 million, up 15.4% from the prior year period, with EPS of $0.54.
Pre-tax, pre-provision net income increased to $25.7 million, a 6.1% rise from the prior year period.
Total loans, excluding PPP loans and sold commercial participation loans, grew by 2.3%, reaching $3.66 billion.
The company's asset sensitive balance sheet is expected to drive continued NIM improvement in 2022.
Horizon Bancorp
Horizon Bancorp
Horizon Bancorp Revenue by Segment
Revenue by Segment
Gain on sale of mortgage loans Revenue
CapyFin.comMortgage servicing income Revenue
CapyFin.com Forward Guidance
Horizon Bancorp anticipates continued NIM improvement in 2022, driven by rates and loan volume, with deposit betas expected to remain competitive.
Positive Outlook
- Continued NIM improvement in 2022 driven by both rates and loan volume
- Deposit betas will remain in line with or better than in–footprint competition
- Strong marketplace positioning
- Conservative expectations for higher–priced deposit runoff
- Asset sensitive balance sheet
Challenges Ahead
- Nationwide wage inflation
- Ongoing operating costs associated with branch acquisition
- Unrealized losses on available for sale investments of $73.6 million
- Impact to the tangible capital ratio was a decrease of 67 basis points
- One–time charge of approximately $432,000 related to branch closures