NASDAQ$HBNC

Horizon Bancorp Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported solid first quarter results with EPS of $0.32, net interest margin expansion, loan growth and well-managed operating expenses.

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.

Headline financials

Total Revenue

$53.2M

Previous: $54.9M-3.0%
EPS

$0.32

Previous: $0.43-25.6%
Net Interest Margin

2.5%

Previous: 2.7%-6.4%
Net Charge-Offs / Avg Loans

0.0%

No prior period
NPA / Total Assets

0.3%

No prior period
Return on Avg Assets

0.7%

No prior period
Return on Avg Equity

7.8%

No prior period
Equity / Total Assets

9.2%

No prior period
Loans to Deposit Ratio

82.8%

No prior period
Efficiency Ratio

69.7%

Previous: 62.9%+10.8%
ROATCE

10.1%

No prior period
Tangible Common Equity Ratio

7.2%

No prior period
Tangible Book Value / Share

$12.65

No prior period
Capital Expenditures

-$1.18M

Previous: -$567K-107.8%
Free Cash Flow

$12.8M

Previous: $17.7M-27.5%
Net Income

$14M

Previous: $18.2M-23.2%
Operating Income

$15.2M

Previous: $30.2M-49.7%
Gross Profit

$52.7M

Previous: $54.7M-3.6%
Stock-Based Comp

$907K

Previous: $758K+19.7%

Revenue & EPS history

Horizon Bancorp · Revenue · Quarterly

$53.2M

Q1 2024-3%vs Q1 2023
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Horizon Bancorp · $11.5M total across 8 segments · Q1 2020

  • Gain on mortgage sales
    $3.47M+165.3%
  • Fiduciary activities
    $2.53M+21.0%
  • Deposit service charges
    $2.45M+30.3%
  • Interchange fees
    $1.9M+39.3%
  • BOLI cash value increase
    $554K+8.0%
  • Other income
    $398K-51.7%
  • Wire transfer fees
    $171K+44.9%
  • Mortgage servicing
    $25K-95.9%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2024

Historical avgQ1 2024

-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

Earnings price reactions
QuarterReport dateReaction (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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