NASDAQ$HBNC

Horizon Bancorp Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record earnings driven by strong loan growth and higher interest rates.

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.

Headline financials

Total Revenue

$65.4M

Previous: $57.8M+13.1%
EPS (adj)

$0.56

Previous: $0.50+12.0%
Net Interest Margin

3.2%

Previous: 3.1%+1.6%
Return on Avg Assets

1.3%

Previous: 1.4%-8.3%
Efficiency Ratio

55.6%

Previous: 57.7%-3.7%
Capital Expenditures

$2.15M

No prior period
Free Cash Flow

$24.9M

Previous: $22.2M+12.1%
Net Income

$24.9M

Previous: $22.2M+12.1%
Operating Income

$55.4M

Previous: $47.8M+15.9%
Gross Profit

$64.6M

Previous: $57.3M+12.6%
Cash & Equivalents

$109M

Previous: $304M-64.2%
Total Assets

$7.64B

Previous: $6.11B+25.1%
Stock-Based Comp

$627K

Previous: -$320K+295.9%

Revenue & EPS history

Horizon Bancorp · Revenue · Quarterly

$65.4M

Q2 2022+13.1%vs Q2 2021
Beat estimate in 8 of 16 quarters(50%)
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

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.

Tailwinds

  • 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.

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 Q2 2022

Historical avgQ2 2022

-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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