Horizon Bancorp Profit Falls

(RTTNews) - Horizon Bancorp (HBNC) Monday reported first-quarter net income to stockholders of $3.4 million or $0.38 per share, compared with $5.2 million or $0.58 per share last year.

Excluding fees related to the acquisition of SCB Bancorp, net income for the recent quarter was $3.6 million or $0.40 per share.

On average, four analysts polled by Thomson Reuters projected earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.

The drop in net income for the quarter reflects the decline in mortgage warehouse activity as well as a reduction in interest income from Heartland loan valuation discounts.

Net interest income for the quarter was lower at $13.3 million, compared with $16 million a year ago. Net interest margin was 3.48%, down from 4.10% a year ago.

Non-interest income was $5.5 million for the quarter, compared with $7.5 million in the prior year.

Analysts estimated revenues of $20.15 million for the quarter.

Horizon did not record a loan-loss provision for the quarter, compared with a provision of $2.1 million last year.

Non-interest expense for the quarter climbed to $14.5 million from $14 million last year.

Total loans increased $34 million during the quarter to $1.1 billion at March 31, 2014.

Core deposits increased $67.7 million during the quarter or 6.7% to $1.1 billion at March 31, 2014.

Horizon Bank's capital ratios, including Tier 1 Capital to Average Assets of 9.51% and Total Capital to Risk Weighted Assets of 14.12% as of March 31, 2014, continue to be well above the regulatory standards for well-capitalized banks.