NASDAQ$HBNC
Horizon Bancorp Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Reported earnings per share of $0.55 and experienced strong loan growth.
Horizon Bancorp reported a net income of $23.8 million, with EPS at $0.55. The company saw strong loan growth, particularly in commercial and consumer loans, which helped offset headwinds from lower non-interest income and increased cost of funds.
- Return on average assets was 1.24% for the third quarter.
- Total loans, excluding PPP loans and sold commercial participation loans, grew by an annualized rate of 7.8% quarter over quarter.
- Net interest income increased by $387,000 to $53.4 million during the third quarter compared to the previous quarter.
- Non-interest income decreased by $2.2 million due to lower residential mortgage loan volume and wealth management fees.
Headline financials
Revenue & EPS history
Horizon Bancorp · Revenue · Quarterly
$63.6M
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 Bancorp anticipates a reduction in non-interest expenses starting Q1 2023 due to branch closings and cost savings initiatives, expecting to maintain the annualized non-interest expense to average assets ratio below 2.00%.
Tailwinds
- Expect higher expense run rate incurred during Q3 2022 to be greatly reduced starting in Q1 2023.
- Expect to see benefit from a full year of seven additional branch closings and their related cost savings in 2023.
- The Bank’s capital position is still robust with leverage and risk based capital ratios of 8.84% and 13.65%, respectively.
- Solid loan growth.
Headwinds
- Economic environment is challenged by rising inflation and supply chain disruption.
- Non-interest income is down $2.2 million for the quarter due to lower residential mortgage loan volume.
- Deposit betas increased to 23% on total interest bearing deposits in the third quarter compared to a 3% beta during the previous quarter.
- Competitive pressure on deposit pricing is starting to accelerate as we see several smaller banks and credit unions aggressively seeking lower cost deposit funding.
- Current estimates for parallel rate shocks to the balance sheet, at 100 basis points and 200 basis points, decrease net interest income by approximately $3.3 million and $6.7 million, respectively.
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 Q3 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
| 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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