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Dec 31, 2022
Horizon Bancorp Q4 2022 Earnings Report
Announced record earnings for 2022, driven by strong loan growth and solid asset quality.
Key Takeaways
Horizon Bancorp, Inc. reported net income of $21.2 million for Q4 2022, with diluted earnings per share of $0.48. The company's commercial and consumer loans grew, and asset quality remained solid. Net interest income was $48.8 million, and non-interest income increased by 4.8% from the previous quarter.
Total loans grew 13.4% year-to-date and 12.8% annualized during the fourth quarter.
Commercial loans grew to a record $2.42 billion, up 13.4% year-to-date and 10.8% annualized during the fourth quarter.
Consumer loans grew to a record $967.8 million, up 30.6% year-to-date and 21.0% annualized during the fourth quarter.
Asset quality remained solid with total loan delinquency at 0.26% of total loans.
Horizon Bancorp
Horizon Bancorp
Forward Guidance
Horizon's net interest income of approximately $48.8 million in the fourth quarter was a reduction from the third quarter due to rapidly rising short term interest rates, some lag in repricing adjustable rate loans and lower fee and non–interest related income. In addition, Horizon's deposit betas increased at a faster pace in the fourth quarter due to the magnitude and velocity of the Federal Reserve Bank's Open Market Committee raising the targeted federal funds rate. We expect funding costs to stabilize in 2023 as the Federal Reserve Bank tempers the velocity of future rate increases