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HBNC Nasdaq· Horizon Bancorp Inc (IN)
Earnings report Q3 2023

Horizon Bancorp Reports Decrease in Net Income for Q3 2023

Segments of revenue

Horizon Bancorp reported a decrease in net income for the third quarter of 2023. Net income was $16.2 million, or $0.37 per diluted share, compared to $18.8 million, or $0.43 per diluted share, in the second quarter of 2023. It is important to note that the second quarter of 2023 included a non-recurring swap termination fee of approximately $1.1 million, or $0.02 per share, which impacted the comparison.

Strengths

Despite the decrease in net income, Horizon Bancorp experienced growth in its loan portfolio during the quarter. Loans totaled $4.36 billion at the end of the period, representing an annualized increase of 8.2% during the quarter and 6.4% compared to the same period last year. This growth in loans indicates the company's ability to attract borrowers and expand its lending activities.

Challenges

Horizon Bancorp faced challenges in its non-interest income during the nine months ended September 30, 2023. Total non-interest income was $4.3 million lower compared to the same period in 2022. This decrease was primarily driven by the net loss generated from the sale of available-for-sale investments, as well as a decline in income from the gain on sale of mortgage loans and mortgage servicing income. These factors contributed to the overall decrease in net income for the nine-month period.

Noteworthy

The company experienced a decrease in net interest income of $9.8 million during the nine-month period ended September 30, 2023, compared to the same period in 2022. This decrease was partially offset by an increase in non-interest income of $1.6 million and a decrease in non-interest expense of $648,000. The decrease in net interest income was primarily due to a decrease in interest income resulting from lower yields earned on interest-earning assets.

Summary

Horizon Bancorp reported a decrease in net income for the third quarter of 2023, primarily driven by lower non-interest income and net interest income. However, the company demonstrated strength in its loan portfolio, with significant growth in loans during the quarter. Horizon Bancorp will need to address the challenges in its non-interest income and manage interest rate fluctuations to improve its financial performance in the future.

Source documents

Form 10-Q  filed on Nov 09, 2023
88 pages scanned

Reference data

Company financials Q3 revenue 20.5M
Analyst estimates Q3 EPS beat by 7.84%
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