Horizon Bancorp is
reporting net income in the first quarter of 2014 of $3.4 million or 38
cents diluted earnings per share, compared to $5.3 million or 53 cents in
the year-ago period.
transaction expenses related to the acquisition of SCB Bancorp Inc. of
$311,000, net income would have been $3.6 million or 40 cents for the first
quarter of 2014,” Horizon said in a statement released today. “The decrease
in net income for the quarter primarily reflects the decline in mortgage
warehouse activity as well as a reduction in interest income from Heartland
loan valuation discounts recognized at the time of acquisition being
accreted and discounts recognized from loans paying off.”
income, after provisions for loan losses, for the first three months of 2014
was $13.3 million compared with $13.9 million for the same period in the
previously announced acquisition of SCB Bancorp Inc. and its wholly-owned
subsidiary, Summit Community Bank, headquartered in East Lansing, Mich.,
closed as scheduled on April 3.
was $5.5 million in first quarter 2014 compared with $7.5 million in the
year-ago, reflecting a decrease of $1.7 million in gain on sale of loans and
a decrease of $368,000 in gain on sale of investment securities.
increased $34.0 million during the quarter to $1.1 billion on March 31.
increased $23.4 million during the quarter or 4.6 percent to $528.6 million
on March 31.
“We are very
pleased to continue Horizon’s growth story this quarter by achieving solid
loan and core deposit growth despite the highly competitive environment and
tepid economic recovery,” Horizon Chair and CEO Craig Dwight said. “This
growth speaks to the quality and dedication of our team to expand existing
client relationships and source new business opportunities.”
noted the growth in commercial loans during the quarter, which on an
annualized basis amounts to an increase of 18.6 percent.
“The slowdown in
residential mortgage lending negatively impacted our results in the first
quarter of 2014, continuing to validate Horizon’s four balanced revenue
streams--business banking, retail banking, residential mortgage lending and
wealth and investment management,” Craig added. “In anticipation of the
residential mortgage lending slowdown, we made significant investments in
new market entries, employee talent, commitment to customer service
guarantees and technology to provide the best in class service to our
customers. Our results this quarter illustrate these investments are paying
off. At the same time, our continued asset quality improvement has enabled
the bank to significantly reduce our provision for loan losses, reflecting
the hard work of our collections and credit administration staff.”