Horizon Bancorp, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, the company achieved a net income of $18.2 million, or $0.42 per share, an increase from $16.2 million, or $0.37 per share, in the same period of 2023. This growth was primarily driven by an increase in net interest income, which rose to $46.9 million, up $4.8 million year-over-year. The net interest margin improved to 2.66%, reflecting a favorable shift towards higher-yielding loans and lower-cost deposit liabilities.
However, for the nine months ended September 30, 2024, net income decreased to $46.3 million, or $1.06 per share, down from $53.2 million, or $1.22 per share, in the prior year. The decline was attributed to increased non-interest expenses and a higher provision for loan losses, despite a slight increase in net interest income to $135.5 million.
Total loans outstanding as of September 30, 2024, reached $4.8 billion, marking an increase of $383.5 million, or 8.8%, from the end of 2023. Total deposits also rose to $5.7 billion, up $62.1 million, or 1.1%. The allowance for credit losses stood at $52.9 million, representing 1.10% of period-end loans held for investment, slightly up from 1.09% at the end of 2023.
On the balance sheet, total assets decreased marginally to $7.9 billion, while total stockholders' equity increased to $754.8 million from $718.8 million at the end of 2023. The company’s capital ratios remained strong, exceeding regulatory requirements for being classified as "well capitalized."
Strategically, Horizon Bancorp signed a letter of intent to sell its mortgage warehouse business in October 2024, which is expected to generate a gain on sale. Additionally, the company has been actively managing its interest rate risk, utilizing earnings simulation models to assess net interest income sensitivity.
Overall, while Horizon Bancorp demonstrated growth in net interest income and maintained a solid capital position, challenges in net income and rising expenses were notable compared to the previous fiscal period.
About HORIZON BANCORP INC /IN/
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