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Jun 30, 2022
Horizon Bancorp Q2 2022 Earnings Report
Reported record earnings driven by strong loan growth and higher interest rates.
Key Takeaways
Horizon Bancorp reported a record second quarter EPS of $0.57, with net income growing to a record $24.9 million, up 5.5% from the linked quarter and 12.1% from the prior year period. Pre-tax, pre-provision net income grew to $29.1 million, up 13.1% from the linked quarter and 18.9% from the prior year period. Total loans, excluding PPP loans and sold commercial participation loans, grew by 6.2%, or 25.1% annualized, during the second quarter to $3.89 billion at period end.
Net income grew to a record $24.9 million, up 5.5% from the linked quarter and 12.1% from the prior year period.
Diluted earnings per share (“EPS”) of $0.57 was up from $0.54 for the first quarter of 2022 and $0.50 for the second quarter of 2021.
Reported net interest margin (“NIM”) was 3.19% and adjusted NIM was 3.12%, with reported NIM increasing by 20 basis points and adjusted NIM increasing by 19 basis points from the first quarter of 2022.
Total loans, excluding Federal Paycheck Protection Program (“PPP”) loans and sold commercial participation loans, grew by 6.2%, or 25.1% annualized, during the second quarter to $3.89 billion at period end.
Horizon Bancorp
Horizon Bancorp
Forward Guidance
Net interest margin is expected to continue to expand, illustrating the Company’s highly asset sensitive balance sheet position. Both the expected additional rate increases, and loan volume will continue to positively impact net interest income and NIM through 2022. Pressure on deposit pricing so far has been limited and is expected to remain in line with or better than competitors.
Positive Outlook
- Net interest margin continues to expand.
- Company’s highly asset sensitive balance sheet position.
- Expected additional rate increases will positively impact net interest income and NIM through 2022.
- Loan volume will continue to positively impact net interest income and NIM through 2022.
- Pressure on deposit pricing so far has been limited.