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Mar 31, 2024
Horizon Bancorp Q1 2024 Earnings Report
Reported solid first quarter results with EPS of $0.32, net interest margin expansion, loan growth and well-managed operating expenses.
Key Takeaways
Horizon Bancorp reported a net income of $14.0 million, or $0.32 per diluted share, for the first quarter of 2024, compared to a net loss of $25.2 million in the previous quarter. The company experienced net interest margin expansion and loan growth, while maintaining well-managed operating expenses.
Net interest margin increased to 2.50% compared to 2.43% in the linked quarter.
Commercial loans grew 11.2% annualized in the quarter, including $22.8 million in new equipment finance production and a $52.0 million increase in other commercial loans.
Total loans were $4.62 billion at period end, increasing by 18.2% annualized during the quarter.
Excellent asset quality with net charge-offs representing only 0.01% of average loans.
Horizon Bancorp
Horizon Bancorp
Horizon Bancorp Revenue by Segment
Revenue by Segment
Service charges on deposit accounts Revenue
CapyFin.comWire transfer fees Revenue
CapyFin.comInterchange fees Revenue
CapyFin.comFiduciary activities Revenue
CapyFin.comGain on sale of mortgage loans Revenue
CapyFin.comMortgage servicing income Revenue
CapyFin.comIncrease in cash value of bank owned life insurance Revenue
CapyFin.comOther income Revenue
CapyFin.com Forward Guidance
Horizon feels confident in their ability to continue to improve their net interest margin and the financial performance of the organization moving forward and are optimistic about their trajectory as they move into the second quarter.
Positive Outlook
- Confident in ability to improve net interest margin.
- Confident in ability to improve financial performance.
- Experiencing consistent growth in relationship banking platforms.
- Team had a solid start to the year.
- Optimistic about trajectory into the second quarter.
Challenges Ahead
- Current economic outlook of higher rates for longer.
- Potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems.
- Estimates of fair value of certain of Horizon’s assets and liabilities.
- Rapid technological developments and changes.
- Rising costs of cybersecurity.