NASDAQ$HBNC
Horizon Bancorp Inc · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Horizon Bancorp's financial performance for Q1 2020 was announced, revealing a solid quarter amidst the COVID-19 pandemic and the adoption of a new accounting standard for current expected credit losses.
Horizon Bancorp reported a net income of $11.7 million, or $0.26 diluted earnings per share, for the first quarter of 2020. The company's pre-tax, pre-provision net income totaled $21.8 million. The results reflect the adoption of the CECL accounting method and the impact of the COVID-19 pandemic.
- Horizon prioritized the safety and well-being of employees, customers, and the community.
- The company's balance sheet was well-positioned leading up to the COVID-19 National Health Emergency.
- Horizon Bank's strong liquidity position included approximately $1.1 billion in cash and investment securities.
- Horizon maintained stable asset quality metrics during the first quarter of 2020.
Headline financials
Revenue & EPS history
Horizon Bancorp · Revenue · Quarterly
$53M
Revenue by segment
Horizon Bancorp · $11.5M total across 8 segments · Q1 2020
- Gain on mortgage sales$3.47M+165.3%30.2%
- Fiduciary activities$2.53M+21.0%22.0%
- Deposit service charges$2.45M+30.3%21.3%
- Interchange fees$1.9M+39.3%16.5%
- BOLI cash value increase$554K+8.0%4.8%
- Other income$398K-51.7%3.5%
- Wire transfer fees$171K+44.9%1.5%
- Mortgage servicing$25K-95.9%0.2%
Forward guidance
Horizon's management expressed caution regarding future economic conditions, particularly concerning unemployment and consumer spending, and anticipated a better understanding of the health and economic emergency's impact over time.
Tailwinds
- Horizon's funding team has done an excellent job of lowering the Bank’s cost of funds related to the Federal Reserve Bank’s 150–basis–point reduction in its benchmark interest rate
- Horizon's net interest margin has remained fairly stable for the quarter
- Horizon's capital and liquidity positions are well-managed
- Horizon was well-positioned going into this economic challenge
- Horizon will continue to be dynamic in our monitoring and approach to managing the balance sheet
Headwinds
- Future headwinds are expected given that we are now close to the floors on our funding costs and assets will continue to reprice throughout the year.
- Losses are anticipated given the closure of our economy and non–essential businesses.
- The shelter in place rules has increased unemployment applications and is limiting consumer spending.
- The impact of this health and economic emergency to Horizon's financial statements is still uncertain.
- The actual impacts of COVID-19 may differ, possibly materially, from expectations due to uncertain factors and future developments.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
-0.0%
Avg return
Earnings day
+0.0%
Avg return
5 days after
+1.7%
Avg return
30 days after
55%
36 / 66 earnings
Positive
+7.4%
Q2 2023
Best reaction
-20.5%
Q3 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +1.4% | +4.8% | +4.4% | |
| Q4 2025 | +2.3% | -3.7% | -0.9% | |
| Q3 2025 | -2.3% | +1.4% | +2.6% | |
| Q2 2025 | -1.4% | -0.7% | +0.4% | |
| Q1 2025 | +4.6% | +4.7% | +3.7% | |
| Q4 2024 | +4.6% | +8.1% | +6.8% | |
| Q3 2024 | +5.8% | +7.4% | +22.3% | |
| Q2 2024 | +6.1% | +3.4% | +2.7% | |
| Q1 2024 | -3.3% | -5.9% | -0.2% | |
| Q4 2023 | -2.2% | -0.4% | -13.5% | |
| Q3 2023 | +0.8% | -1.6% | +16.1% | |
| Q2 2023 | +7.4% | +6.5% | -6.7% | |
| Q1 2023 | +4.9% | +0.5% | -6.7% | |
| Q4 2022 | -4.7% | -2.5% | -0.7% | |
| Q3 2022 | -20.5% | -25.5% | -19.4% | |
| Q2 2022 | +1.5% | +3.5% | +5.2% | |
| Q1 2022 | +0.4% | -2.8% | -1.8% | |
| Q4 2021 | -6.1% | -4.6% | -9.1% | |
| Q3 2021 | -2.7% | +2.1% | +4.5% | |
| Q2 2021 | +4.1% | +3.3% | +10.7% | |
| Q1 2021 | +1.1% | +1.5% | +1.1% | |
| Q4 2020 | -2.7% | -0.2% | +6.1% | |
| Q3 2020 | +1.2% | +3.7% | +25.2% | |
| Q2 2020 | +7.3% | +2.1% | +13.8% | |
| Q1 2020 | +1.9% | -3.4% | -8.1% | |
| Q4 2019 | -1.3% | -3.3% | -15.0% | |
| Q3 2019 | +2.9% | +3.3% | +5.0% | |
| Q2 2019 | +5.6% | +7.1% | -0.9% | |
| Q1 2019 | -2.3% | +3.2% | -0.1% | |
| Q4 2018 | -4.1% | -3.5% | +5.5% | |
| Q3 2018 | -1.1% | +1.6% | +2.4% | |
| Q2 2018 | +3.1% | +2.1% | +0.3% | |
| Q1 2018 | -1.4% | -4.5% | +3.5% | |
| Q4 2017 | +3.0% | +5.5% | +3.2% | |
| Q3 2017 | -0.7% | -5.1% | -6.3% | |
| Q2 2017 | -0.4% | -0.6% | -2.9% | |
| Q1 2017 | +1.5% | +0.4% | -5.9% | |
| Q4 2016 | -0.2% | -4.1% | +0.0% | |
| Q3 2016 | -5.5% | -5.8% | +16.6% | |
| Q2 2016 | +0.8% | +2.1% | +3.6% | |
| Q1 2016 | +0.7% | — | — | |
| Q4 2015 | -3.7% | — | — | |
| Q3 2015 | +2.2% | — | — | |
| Q2 2015 | -4.0% | — | — | |
| Q1 2015 | +0.9% | — | — | |
| Q4 2014 | +0.6% | — | — | |
| Q3 2014 | +0.9% | — | — | |
| Q2 2014 | -0.1% | — | — | |
| Q1 2014 | -2.4% | — | — | |
| Q4 2013 | -4.1% | — | — | |
| Q3 2013 | -1.4% | — | — | |
| Q2 2013 | +0.6% | — | — | |
| Q1 2013 | -1.3% | — | — | |
| Q4 2011 | -2.1% | — | — | |
| Q4 2012 | -8.5% | — | — | |
| Q3 2012 | -3.0% | — | — | |
| Q2 2012 | -0.5% | — | — | |
| Q1 2011 | +0.1% | — | — | |
| Q1 2012 | -3.1% | — | — | |
| Q4 2009 | +0.8% | — | — | |
| Q3 2010 | +1.0% | — | — | |
| Q3 2011 | +1.0% | — | — | |
| Q2 2011 | +4.7% | — | — | |
| Q4 2010 | +4.7% | — | — | |
| Q2 2010 | +4.7% | — | — | |
| Q1 2010 | +1.6% | — | — |
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