☒ | QUARTERLY REPORT |
2019
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Indiana | 35-1562417 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
515 Franklin Street, Michigan City, Indiana | 46360 | |
(Address of principal executive offices) | (Zip Code) |
(219)(and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulationand post such files). Yes ☐ ☒Non-accelerated Filer ☐ (Do not check if smaller reporting company)
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June 30 2018 | December 31 2017 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Cash and due from banks | $ | 69,018 | $ | 76,441 | ||||
Investment securities, available for sale | 526,195 | 509,665 | ||||||
Investment securities, held to maturity (fair value of $206,730 and $201,085) | 209,767 | 200,448 | ||||||
Loans held for sale | 3,000 | 3,094 | ||||||
Loans, net of allowance for loan losses of $17,071 and $16,394 | 2,907,445 | 2,815,601 | ||||||
Premises and equipment, net | 75,063 | 75,529 | ||||||
Federal Home Loan Bank stock | 18,105 | 18,105 | ||||||
Goodwill | 119,880 | 119,880 | ||||||
Other intangible assets | 11,359 | 12,402 | ||||||
Interest receivable | 12,993 | 16,244 | ||||||
Cash value of life insurance | 76,576 | 75,931 | ||||||
Other assets | 47,210 | 40,963 | ||||||
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Total assets | $ | 4,076,611 | $ | 3,964,303 | ||||
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Liabilities | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 615,018 | $ | 601,805 | ||||
Interest bearing | 2,401,145 | 2,279,198 | ||||||
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Total deposits | 3,016,163 | 2,881,003 | ||||||
Borrowings | 524,846 | 564,157 | ||||||
Subordinated debentures | 37,745 | 37,653 | ||||||
Interest payable | 1,441 | 886 | ||||||
Other liabilities | 25,881 | 23,526 | ||||||
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Total liabilities | 3,606,076 | 3,507,225 | ||||||
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Commitments and contingent liabilities | ||||||||
Stockholders’ Equity | ||||||||
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares | — | — | ||||||
Common stock, no par value, Authorized 99,000,000 shares (Restated - See Note 1) | ||||||||
Issued 38,387,709 and 38,323,604 shares (Restated - See Note 1), Outstanding 38,362,640 and 38,294,729 shares (Restated - See Note 1) | — | — | ||||||
Additionalpaid-in capital | 275,587 | 275,059 | ||||||
Retained earnings | 205,535 | 185,570 | ||||||
Accumulated other comprehensive loss | (10,587 | ) | (3,551 | ) | ||||
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Total stockholders’ equity | 470,535 | 457,078 | ||||||
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Total liabilities and stockholders’ equity | $ | 4,076,611 | $ | 3,964,303 | ||||
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June 30 | December 31 | |||||||
2019 | 2018 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 94,686 | $ | 58,492 | ||||
Interest-earning time deposits | 8,090 | 15,744 | ||||||
Investment securities, available for sale | 673,419 | 600,348 | ||||||
Investment securities, held to maturity (fair value of $219,891 and $208,273) | 213,768 | 210,112 | ||||||
Loans held for sale | 3,185 | 1,038 | ||||||
Loans, net of allowance for loan losses of $18,305 and $17,820 | 3,646,363 | 2,995,512 | ||||||
Premises and equipment, net | 91,469 | 74,331 | ||||||
Federal Home Loan Bank stock | 22,447 | 18,073 | ||||||
Goodwill | 151,111 | 119,880 | ||||||
Other intangible assets | 28,665 | 10,390 | ||||||
Interest receivable | 19,015 | 14,239 | ||||||
Cash value of life insurance | 94,613 | 88,062 | ||||||
Other assets | 51,851 | 40,467 | ||||||
Total assets | $ | 5,098,682 | $ | 4,246,688 | ||||
Liabilities | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 810,350 | $ | 642,129 | ||||
Interest bearing | 3,120,425 | 2,497,247 | ||||||
Total deposits | 3,930,775 | 3,139,376 | ||||||
Borrowings | 436,233 | 550,384 | ||||||
Subordinated debentures | 56,194 | 37,837 | ||||||
Interest payable | 3,005 | 2,031 | ||||||
Other liabilities | 46,014 | 25,068 | ||||||
Total liabilities | 4,472,221 | 3,754,696 | ||||||
Commitments and contingent liabilities | ||||||||
Stockholders’ Equity | ||||||||
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares | — | — | ||||||
Common stock, no par value, Authorized 99,000,000 shares (Restated - See Note 1) | ||||||||
Issued 45,086,441 and 38,400,476 shares (Restated - See Note 1), Outstanding 45,061,372 and 38,375,407 shares (Restated - See Note 1) | — | — | ||||||
Additional paid-in capital | 380,735 | 276,101 | ||||||
Retained earnings | 241,519 | 224,035 | ||||||
Accumulated other comprehensive income (loss) | 4,207 | (8,144 | ) | |||||
Total stockholders’ equity | 626,461 | 491,992 | ||||||
Total liabilities and stockholders’ equity | $ | 5,098,682 | $ | 4,246,688 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest Income | ||||||||||||||||
Loans receivable | $ | 36,308 | $ | 26,795 | $ | 71,439 | $ | 51,586 | ||||||||
Investment securities | ||||||||||||||||
Taxable | 2,563 | 2,244 | 4,993 | 4,650 | ||||||||||||
Tax exempt | 1,870 | 1,766 | 3,735 | 3,403 | ||||||||||||
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Total interest income | 40,741 | 30,805 | 80,167 | 59,639 | ||||||||||||
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Interest Expense | ||||||||||||||||
Deposits | 3,920 | 1,721 | 6,791 | 3,474 | ||||||||||||
Borrowed funds | 2,679 | 1,338 | 5,251 | 2,275 | ||||||||||||
Subordinated debentures | 592 | 548 | 1,164 | 1,124 | ||||||||||||
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Total interest expense | 7,191 | 3,607 | 13,206 | 6,873 | ||||||||||||
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Net Interest Income | 33,550 | 27,198 | 66,961 | 52,766 | ||||||||||||
Provision for loan losses | 635 | 330 | 1,202 | 660 | ||||||||||||
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Net Interest Income after Provision for Loan Losses | 32,915 | 26,868 | 65,759 | 52,106 | ||||||||||||
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Non-interest Income | ||||||||||||||||
Service charges on deposit accounts | 1,907 | 1,566 | 3,795 | 2,966 | ||||||||||||
Wire transfer fees | 180 | 178 | 330 | 328 | ||||||||||||
Interchange fees | 1,555 | 1,382 | 2,883 | 2,558 | ||||||||||||
Fiduciary activities | 1,818 | 1,943 | 3,743 | 3,865 | ||||||||||||
Gains on sale of investment securities (includes $0 and $(3) for the three months ended June 30, 2018 and 2017, respectively, and $11 and $32 for the six months ended June 30, 2018 and 2017, respectively, related to accumulated other comprehensive earnings reclassifications) | — | (3 | ) | 11 | 32 | |||||||||||
Gain on sale of mortgage loans | 1,896 | 2,054 | 3,319 | 3,968 | ||||||||||||
Mortgage servicing income net of impairment | 511 | 359 | 860 | 806 | ||||||||||||
Increase in cash value of bank owned life insurance | 442 | 408 | 877 | 872 | ||||||||||||
Death benefit on bank owned life insurance | 154 | — | 154 | — | ||||||||||||
Other income | 469 | 325 | 1,278 | 376 | ||||||||||||
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Totalnon-interest income | 8,932 | 8,212 | 17,250 | 15,771 | ||||||||||||
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Non-interest Expense | ||||||||||||||||
Salaries and employee benefits | 13,809 | 12,466 | 28,182 | 24,175 | ||||||||||||
Net occupancy expenses | 2,520 | 2,196 | 5,486 | 4,648 | ||||||||||||
Data processing | 1,607 | 1,502 | 3,303 | 2,809 | ||||||||||||
Professional fees | 376 | 535 | 877 | 1,148 | ||||||||||||
Outside services and consultants | 1,267 | 1,265 | 2,531 | 2,487 | ||||||||||||
Loan expense | 1,525 | 1,250 | 2,782 | 2,357 | ||||||||||||
FDIC insurance expense | 345 | 243 | 655 | 506 | ||||||||||||
Other losses | 269 | 78 | 415 | 128 | ||||||||||||
Other expense | 3,224 | 2,953 | 6,548 | 5,751 | ||||||||||||
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Totalnon-interest expense | 24,942 | 22,488 | 50,779 | 44,009 | ||||||||||||
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Income Before Income Taxes | 16,905 | 12,592 | 32,230 | 23,868 | ||||||||||||
Income tax expense (includes $0 and $(1) for the three months ended June 30, 2018 and 2017, respectively, and $2 and $11 for the six months ended June 30, 2018 and 2017, respectively, related to income tax expense from reclassification items) | 2,790 | 3,520 | 5,311 | 6,572 | ||||||||||||
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Net Income | $ | 14,115 | $ | 9,072 | $ | 26,919 | $ | 17,296 | ||||||||
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Basic Earnings Per Share (Restated - See Note 1) | $ | 0.37 | $ | 0.27 | $ | 0.70 | $ | 0.52 | ||||||||
Diluted Earnings Per Share (Restated - See Note 1) | 0.37 | 0.27 | 0.70 | 0.51 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest Income | ||||||||||||||||
Loans receivable | $ | 47,784 | $ | 36,308 | $ | 87,407 | $ | 71,439 | ||||||||
Investment securities | ||||||||||||||||
Taxable | 3,273 | 2,563 | 6,395 | 4,993 | ||||||||||||
Tax exempt | 2,793 | 1,870 | 5,421 | 3,735 | ||||||||||||
Total interest income | 53,850 | 40,741 | 99,223 | 80,167 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 8,938 | 3,920 | 15,814 | 6,791 | ||||||||||||
Borrowed funds | 2,495 | 2,679 | 6,116 | 5,251 | ||||||||||||
Subordinated debentures | 888 | 592 | 1,484 | 1,164 | ||||||||||||
Total interest expense | 12,321 | 7,191 | 23,414 | 13,206 | ||||||||||||
Net Interest Income | 41,529 | 33,550 | 75,809 | 66,961 | ||||||||||||
Provision for loan losses | 896 | 635 | 1,260 | 1,202 | ||||||||||||
Net Interest Income after Provision for Loan Losses | 40,633 | 32,915 | 74,549 | 65,759 | ||||||||||||
Non-interest Income | ||||||||||||||||
Service charges on deposit accounts | 2,480 | 1,907 | 4,357 | 3,795 | ||||||||||||
Wire transfer fees | 167 | 180 | 285 | 330 | ||||||||||||
Interchange fees | 2,160 | 1,555 | 3,521 | 2,883 | ||||||||||||
Fiduciary activities | 2,063 | 1,818 | 4,152 | 3,743 | ||||||||||||
Gains (losses) on sale of investment securities (includes $(100) and $0 for the three months ended June 30, 2019 and 2018, respectively, and $(85) and $11 for the six months ended June 30, 2019 and six months ended June 30, 2018 related to accumulated other comprehensive earnings reclassifications) | (100 | ) | — | (85 | ) | 11 | ||||||||||
Gain on sale of mortgage loans | 2,078 | 1,896 | 3,387 | 3,319 | ||||||||||||
Mortgage servicing income net of impairment | 570 | 511 | 1,176 | 860 | ||||||||||||
Increase in cash value of bank owned life insurance | 555 | 442 | 1,068 | 877 | ||||||||||||
Death benefit on bank owned life insurance | 367 | 154 | 367 | 154 | ||||||||||||
Other income | 558 | 469 | 1,382 | 1,278 | ||||||||||||
Total non-interest income | 10,898 | 8,932 | 19,610 | 17,250 | ||||||||||||
Non-interest Expense | ||||||||||||||||
Salaries and employee benefits | 16,951 | 13,809 | 31,417 | 28,182 | ||||||||||||
Net occupancy expenses | 3,148 | 2,520 | 5,920 | 5,486 | ||||||||||||
Data processing | 2,139 | 1,607 | 4,105 | 3,303 | ||||||||||||
Professional fees | 598 | 376 | 1,091 | 877 | ||||||||||||
Outside services and consultants | 1,655 | 1,267 | 5,185 | 2,531 | ||||||||||||
Loan expense | 2,048 | 1,525 | 3,997 | 2,782 | ||||||||||||
FDIC insurance expense | 365 | 345 | 525 | 655 | ||||||||||||
Other losses | 169 | 269 | 273 | 415 | ||||||||||||
Other expense | 4,511 | 3,224 | 8,809 | 6,548 | ||||||||||||
Total non-interest expense | 31,584 | 24,942 | 61,322 | 50,779 | ||||||||||||
Income Before Income Taxes | 19,947 | 16,905 | 32,837 | 32,230 | ||||||||||||
Income tax expense (includes $(21) and $0 for the three months ended June 30, 2019 and 2018, respectively, and $(18) and $2 for the six months ended June 30, 2019 and six months ended June 30, 2018 related to income tax expense (benefit) from reclassification items) | 3,305 | 2,790 | 5,379 | 5,311 | ||||||||||||
Net Income | $ | 16,642 | $ | 14,115 | $ | 27,458 | $ | 26,919 | ||||||||
Basic Earnings Per Share (Restated - See Note 1) | $ | 0.37 | $ | 0.37 | $ | 0.65 | $ | 0.70 | ||||||||
Diluted Earnings Per Share (Restated - See Note 1) | 0.37 | 0.37 | 0.65 | 0.70 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net Income | $ | 14,115 | $ | 9,072 | $ | 26,919 | $ | 17,296 | ||||||||
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Other Comprehensive Income (Loss) | ||||||||||||||||
Change in fair value of derivative instruments: | ||||||||||||||||
Change in fair value of derivative instruments for the period | 354 | 46 | 1,113 | 446 | ||||||||||||
Income tax effect | (75 | ) | (16 | ) | (234 | ) | (156 | ) | ||||||||
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Changes from derivative instruments | 279 | 30 | 879 | 290 | ||||||||||||
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Change in securities: | ||||||||||||||||
Unrealized appreciation (depreciation) for the period on AFS securities | (829 | ) | 3,638 | (8,943 | ) | 6,235 | ||||||||||
Amortization from transfer of securities from available for sale to | (46 | ) | (58 | ) | (98 | ) | (146 | ) | ||||||||
Reclassification adjustment for securities (gains) losses realized in income | — | 3 | (11 | ) | (32 | ) | ||||||||||
Income tax effect | 187 | (1,252 | ) | 1,903 | (2,119 | ) | ||||||||||
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Unrealized gains (losses) on securities | (688 | ) | 2,331 | (7,149 | ) | 3,938 | ||||||||||
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Other Comprehensive Income (Loss), Net of Tax | (409 | ) | 2,361 | (6,270 | ) | 4,228 | ||||||||||
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Comprehensive Income | $ | 13,706 | $ | 11,433 | $ | 20,649 | $ | 21,524 | ||||||||
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Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Income | $ | 16,642 | $ | 14,115 | $ | 27,458 | $ | 26,919 | ||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||
Change in fair value of derivative instruments: | ||||||||||||||||
Change in fair value of derivative instruments for the period | (1,901 | ) | 354 | (3,007 | ) | 1,113 | ||||||||||
Income tax effect | 399 | (75 | ) | 631 | (234 | ) | ||||||||||
Changes from derivative instruments | (1,502 | ) | 279 | (2,376 | ) | 879 | ||||||||||
Change in securities: | ||||||||||||||||
Unrealized appreciation (depreciation) for the period on AFS securities | 6,933 | (829 | ) | 18,627 | (8,943 | ) | ||||||||||
Amortization from transfer of securities from available for sale to held to maturity securities | (30 | ) | (46 | ) | (68 | ) | (98 | ) | ||||||||
Reclassification adjustment for securities (gains) losses realized in income | 100 | — | 85 | (11 | ) | |||||||||||
Income tax effect | (1,472 | ) | 187 | (3,917 | ) | 1,903 | ||||||||||
Unrealized gains (losses) on securities | 5,531 | (688 | ) | 14,727 | (7,149 | ) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 4,029 | (409 | ) | 12,351 | (6,270 | ) | ||||||||||
Comprehensive Income | $ | 20,671 | $ | 13,706 | $ | 39,809 | $ | 20,649 |
HORIZON BANCORP,
Preferred Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||
Balances, January 1, 2018 | $ | — | $ | 275,059 | $ | 185,570 | $ | (3,551 | ) | $ | 457,078 | |||||||||
Net income | — | — | 26,919 | — | 26,919 | |||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (6,270 | ) | (6,270 | ) | |||||||||||||
Amortization of unearned compensation | — | (79 | ) | — | — | (79 | ) | |||||||||||||
Exercise of stock options | — | 444 | — | — | 444 | |||||||||||||||
Stock option expense | — | 163 | — | — | 163 | |||||||||||||||
Reclassification of tax adjustment on accumulated other comprehensive loss | — | — | 766 | (766 | ) | — | ||||||||||||||
Cash dividends on common stock ($0.20 per share) | — | — | (7,720 | ) | — | (7,720 | ) | |||||||||||||
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Balances, June 30, 2018 | $ | — | $ | 275,587 | $ | 205,535 | $ | (10,587 | ) | $ | 470,535 | |||||||||
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Three Months Ended | ||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
Balances, April 1, 2018 | $ | — | $ | — | $ | 275,302 | $ | 195,292 | $ | (10,178 | ) | $ | 460,416 | |||||||||||
Net income | — | — | — | 14,115 | — | 14,115 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (409 | ) | (409 | ) | ||||||||||||||||
Amortization of unearned compensation | — | — | (140 | ) | — | — | (140 | ) | ||||||||||||||||
Exercise of stock options | — | — | 344 | — | — | 344 | ||||||||||||||||||
Stock option expense | — | — | 81 | — | — | 81 | ||||||||||||||||||
Reclassification of tax adjustment on accumulated other comprehensive loss | — | — | — | — | — | — | ||||||||||||||||||
Cash dividends on common stock ($0.10 per share) | — | — | — | (3,872 | ) | — | (3,872 | ) | ||||||||||||||||
Balances, June 30, 2018 | $ | — | $ | — | $ | 275,587 | $ | 205,535 | $ | (10,587 | ) | $ | 470,535 | |||||||||||
Balances, April 1, 2019 | $ | — | $ | — | $ | 378,963 | $ | 230,327 | $ | 178 | $ | 609,468 | ||||||||||||
Net income | — | — | — | 16,642 | — | 16,642 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 4,029 | 4,029 | ||||||||||||||||||
Amortization of unearned compensation | — | — | 210 | — | — | 210 | ||||||||||||||||||
Exercise of stock options | — | — | 38 | — | — | 38 | ||||||||||||||||||
Stock option expense | — | — | 58 | — | — | 58 | ||||||||||||||||||
Stock issued stock plans | — | — | 1,466 | — | — | 1,466 | ||||||||||||||||||
Stock issued in Salin acquisition | — | — | — | — | — | — | ||||||||||||||||||
Cash dividends on common stock ($0.12 per share) | — | — | — | (5,450 | ) | — | (5,450 | ) | ||||||||||||||||
Balances, June 30, 2019 | $ | — | $ | — | $ | 380,735 | $ | 241,519 | $ | 4,207 | $ | 626,461 |
Six Months Ended | ||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
Balances, January 1, 2018 | $ | — | $ | — | $ | 275,059 | $ | 185,570 | $ | (3,551 | ) | $ | 457,078 | |||||||||||
Net income | — | — | — | 26,919 | — | 26,919 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (6,270 | ) | (6,270 | ) | ||||||||||||||||
Amortization of unearned compensation | — | — | (79 | ) | — | — | (79 | ) | ||||||||||||||||
Exercise of stock options | — | — | 444 | — | — | 444 | ||||||||||||||||||
Stock option expense | — | — | 163 | — | — | 163 | ||||||||||||||||||
Reclassification of tax adjustment on accumulated other comprehensive loss | — | — | — | 766 | (766 | ) | — | |||||||||||||||||
Cash dividends on common stock ($0.20 per share) | — | — | — | (7,720 | ) | — | (7,720 | ) | ||||||||||||||||
Balances, June 30, 2018 | $ | — | $ | — | $ | 275,587 | $ | 205,535 | $ | (10,587 | ) | $ | 470,535 | |||||||||||
Balances, January 1, 2019 | $ | — | $ | — | $ | 276,101 | $ | 224,035 | $ | (8,144 | ) | $ | 491,992 | |||||||||||
Net income | — | — | — | 27,458 | — | 27,458 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 12,351 | 12,351 | ||||||||||||||||||
Amortization of unearned compensation | — | — | 301 | — | — | 301 | ||||||||||||||||||
Exercise of stock options | — | — | 155 | — | — | 155 | ||||||||||||||||||
Stock option expense | — | — | 115 | — | — | 115 | ||||||||||||||||||
Stock issued stock plans | — | — | 1,341 | — | — | 1,341 | ||||||||||||||||||
Stock issued in Salin acquisition | — | — | 102,722 | — | — | 102,722 | ||||||||||||||||||
Cash dividends on common stock ($0.22 per share) | — | — | — | (9,974 | ) | — | (9,974 | ) | ||||||||||||||||
Balances, June 30, 2019 | $ | — | $ | — | $ | 380,735 | $ | 241,519 | $ | 4,207 | $ | 626,461 | ||||||||||||
Six Months Ended | ||||||||
June 30 | ||||||||
2018 | 2017 | |||||||
Operating Activities | ||||||||
Net income | $ | 26,919 | $ | 17,296 | ||||
Items not requiring (providing) cash | ||||||||
Provision for loan losses | 1,202 | 660 | ||||||
Depreciation and amortization | 3,300 | 2,820 | ||||||
Share based compensation | 163 | 158 | ||||||
Mortgage servicing rights, net impairment | 24 | 23 | ||||||
Premium amortization on securities, net | 2,985 | 2,945 | ||||||
Gain on sale of investment securities | (11 | ) | (32 | ) | ||||
Gain on sale of mortgage loans | (3,319 | ) | (3,968 | ) | ||||
Proceeds from sales of loans | 95,218 | 113,382 | ||||||
Loans originated for sale | (86,812 | ) | (107,473 | ) | ||||
Change in cash value life insurance | (877 | ) | (872 | ) | ||||
Death benefit on bank owned life insurance | (154 | ) | — | |||||
(Gain)/loss on sale of other real estate owned | (55 | ) | 83 | |||||
Net change in: | ||||||||
Interest receivable | 3,251 | (584 | ) | |||||
Interest payable | 555 | 81 | ||||||
Other assets | (4,220 | ) | 3,714 | |||||
Other liabilities | 7,211 | (1,794 | ) | |||||
|
|
|
| |||||
Net cash provided by operating activities | 45,380 | 26,439 | ||||||
|
|
|
| |||||
Investing Activities | ||||||||
Purchases of securities available for sale | (84,909 | ) | (97,482 | ) | ||||
Proceeds from sales, maturities, calls and principal repayments of securities available for sale | 55,723 | 44,223 | ||||||
Purchases of securities held to maturity | (14,207 | ) | (19,948 | ) | ||||
Proceeds from maturities of securities held to maturity | 5,517 | 4,853 | ||||||
Change in Federal Reserve and FHLB stock | — | 8,987 | ||||||
Net change in loans | (102,516 | ) | (128,271 | ) | ||||
Proceeds on the sale of OREO and repossessed assets | 794 | 1,057 | ||||||
Change in premises and equipment, net | (1,870 | ) | (1,052 | ) | ||||
Net cash received in acquisition of branch | — | 11,000 | ||||||
|
|
|
| |||||
Net cash used in investing activities | (141,468 | ) | (176,633 | ) | ||||
|
|
|
| |||||
Financing Activities | ||||||||
Net change in: | ||||||||
Deposits | 135,160 | (67,254 | ) | |||||
Borrowings | (39,219 | ) | 217,921 | |||||
Proceeds from issuance of stock | 444 | 34 | ||||||
Dividends paid on common stock | (7,720 | ) | (5,346 | ) | ||||
|
|
|
| |||||
Net cash provided by financing activities | 88,665 | 145,355 | ||||||
|
|
|
| |||||
Net Change in Cash and Cash Equivalents | (7,423 | ) | (4,839 | ) | ||||
Cash and Cash Equivalents, Beginning of Period | 76,441 | 70,832 | ||||||
|
|
|
| |||||
Cash and Cash Equivalents, End of Period | $ | 69,018 | $ | 65,993 | ||||
|
|
|
| |||||
Additional Supplemental Information | ||||||||
Interest paid | $ | 12,651 | $ | 6,786 | ||||
Income taxes paid | 3,966 | 6,350 | ||||||
Transfer of loans to other real estate | 733 | 1,416 | ||||||
Acquisition of LaPorte, measurement period adjustments | — | 704 |
Six Months Ended | ||||||||
June 30 | ||||||||
2019 | 2018 | |||||||
Operating Activities | ||||||||
Net income | $ | 27,458 | $ | 26,919 | ||||
Items not requiring (providing) cash | ||||||||
Provision for loan losses | 1,260 | 1,202 | ||||||
Depreciation and amortization | 4,380 | 3,300 | ||||||
Share based compensation | 115 | 163 | ||||||
Mortgage servicing rights, net impairment | (11 | ) | 24 | |||||
Premium amortization on securities, net | 2,589 | 2,985 | ||||||
Loss (gain) on sale of investment securities | 85 | (11 | ) | |||||
Gain on sale of mortgage loans | (3,387 | ) | (3,319 | ) | ||||
Proceeds from sales of loans | 92,314 | 95,218 | ||||||
Loans originated for sale | (91,074 | ) | (86,812 | ) | ||||
Change in cash value life insurance | (1,068 | ) | (877 | ) | ||||
Death benefit on bank owned life insurance | 367 | 154 | ||||||
Gain on sale of other real estate owned | (11 | ) | (55 | ) | ||||
Net change in: | ||||||||
Interest receivable | (2,288 | ) | 3,251 | |||||
Interest payable | 148 | 555 | ||||||
Other assets | 96,042 | (4,241 | ) | |||||
Other liabilities | 7,780 | 7,211 | ||||||
Net cash provided by operating activities | 134,699 | 45,667 | ||||||
Investing Activities | ||||||||
Purchases of securities available for sale | (176,629 | ) | (84,909 | ) | ||||
Proceeds from sales, maturities, calls and principal repayments of securities available for sale | 165,638 | 55,723 | ||||||
Purchases of securities held to maturity | — | (14,207 | ) | |||||
Proceeds from maturities of securities held to maturity | 4,551 | 5,517 | ||||||
Net change in interest-earning time deposits | 7,654 | (287 | ) | |||||
Change in FHLB stock | (803 | ) | — | |||||
Net change in loans | (84,406 | ) | (102,516 | ) | ||||
Proceeds on the sale of OREO and repossessed assets | 1,260 | 794 | ||||||
Change in premises and equipment, net | (1,538 | ) | (1,870 | ) | ||||
Net cash received in acquisition, Salin | 128,745 | — | ||||||
Net cash provided by (used in) investing activities | 44,472 | (141,755 | ) | |||||
Financing Activities | ||||||||
Net change in: | ||||||||
Deposits | 50,049 | 135,160 | ||||||
Borrowings | (184,548 | ) | (39,219 | ) | ||||
Proceeds from issuance of stock | 1,496 | 444 | ||||||
Dividends paid on common stock | (9,974 | ) | (7,720 | ) | ||||
Net cash provided by (used in) financing activities | (142,977 | ) | 88,665 | |||||
Net Change in Cash and Cash Equivalents | 36,194 | (7,423 | ) | |||||
Cash and Cash Equivalents, Beginning of Period | 58,492 | 76,441 | ||||||
Cash and Cash Equivalents, End of Period | $ | 94,686 | $ | 69,018 | ||||
Additional Supplemental Information | ||||||||
Interest paid | $ | 22,440 | $ | 12,651 | ||||
Income taxes paid | 1,300 | 3,966 | ||||||
Transfer of loans to other real estate and repossessed assets | 1,213 | 733 | ||||||
Transfer of premises to other real estate | 1,564 | — | ||||||
Right-of-use assets exchanged for lease obligations | 3,411 | — |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Basic earnings per share | ||||||||||||||||
Net income | $ | 14,115 | $ | 9,072 | $ | 26,919 | $ | 17,296 | ||||||||
Weighted average common shares outstanding(1) | 38,347,612 | 33,264,697 | 38,327,118 | 33,263,997 | ||||||||||||
Basic earnings per share | $ | 0.37 | $ | 0.27 | $ | 0.70 | $ | 0.52 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Diluted earnings per share | ||||||||||||||||
Net income available to common shareholders | $ | 14,115 | $ | 9,072 | $ | 26,919 | $ | 17,296 | ||||||||
Weighted average common shares outstanding(1) | 38,347,612 | 33,264,697 | 38,327,118 | 33,263,997 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Restricted stock | 47,307 | 45,136 | 37,383 | 49,807 | ||||||||||||
Stock options | 124,482 | 173,751 | 119,820 | 172,975 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Weighted average common shares outstanding | 38,519,401 | 33,483,584 | 38,484,321 | 33,486,779 | ||||||||||||
$ | 0.37 | $ | 0.27 | $ | 0.70 | $ | 0.51 | |||||||||
|
|
|
|
|
|
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Basic earnings per share | ||||||||||||||||
Net income | $ | 16,642 | $ | 14,115 | $ | 27,458 | $ | 26,919 | ||||||||
Weighted average common shares outstanding (1) | 45,055,117 | 38,347,612 | 41,956,047 | 38,327,118 | ||||||||||||
Basic earnings per share | $ | 0.37 | $ | 0.37 | $ | 0.65 | $ | 0.70 | ||||||||
Diluted earnings per share | ||||||||||||||||
Net income available to common shareholders | $ | 16,642 | $ | 14,115 | $ | 27,458 | $ | 26,919 | ||||||||
Weighted average common shares outstanding (1) | 45,055,117 | 38,347,612 | 41,956,047 | 38,327,118 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Restricted stock | — | 47,307 | — | 37,383 | ||||||||||||
Stock options | 75,291 | 124,482 | 76,924 | 119,820 | ||||||||||||
Weighted average common shares outstanding | 45,130,408 | 38,519,401 | 42,032,971 | 38,484,321 | ||||||||||||
$ | 0.37 | $ | 0.37 | $ | 0.65 | $ | 0.70 | |||||||||
(1) |
|
815), Targeted Improvements to Accounting for Hedging Activities
FASB ASUNo. 2016-01,Financial Instruments – Overall (Subtopic825-10):Recognition and Measurementthe consolidated financial statements.
The new guidance makes targeted improvements to existing U.S. GAAP by:
Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income;
Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes;
Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements;
Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities;
Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and
Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.
The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. In addition,Under the new guidance, permits early adoptionlessees will be required to recognize the following for all leases, with the exception of short-term leases, at the provisioncommencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a
FASB ASUNo. 2014-09,Revenue from Contracts with Customers (Topic 606)
The FASB has issued ASUNo. 2014-09 creating,Revenue from Contracts with Customers (Topic 606).The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contractsspecified asset for the transfer of nonfinancial assets unless those contracts are withinlease term. Under the scope of other standards (for example, insurance contracts or lease contracts). The core principle of thenew guidance, lessor accounting is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.largely unchanged. The amendments in this update becomebecame effective for annual periods and interim periods within those annual periods beginning after December 15, 2017.2018. The Company adopted this ASU2014-09 on as of January 1, 20182019 using the alternative transition method. In addition, the Company utilized the practical expedients provided by the ASU allowing it to retain the classifications of existing leases, not reassess initial direct costs for any existing leases, and did not identify any significant changes into use hindsight when determining the timinglease term and assessment of revenue recognition when considering the amended accounting guidance. Additional disclosures related to revenue recognition appear in “Note 1 – Accounting Policies.”
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
In May 2016, the FASB issued ASUNo. 2016-12,Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and some practical expedients.
In December 2016, the FASB issued ASUNo. 2016-20,Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements. The FASB board decided to issue a separate update for technical corrections and improvements to Topic 606 and other Topics amended by ASUNo. 2014-09 to increase awarenessimpairment of the proposalsright-of-use assets. Upon adoption, the Company capitalized $3.5 million for
existing straight-line lease liabilities. See Note 8, “Leases”.
20172018 condensed consolidated financial statements to be comparable to 2018.2019. These reclassifications hadWolverine Bancorp,October 17, 2017,March 26, 2019, Horizon completed the acquisition of Wolverine Bancorp,Salin Bancshares, Inc. (“Salin”), a Marylandan Indiana corporation, (“Wolverine”) and Horizon Bank’s acquisition of WolverineSalin Bank a federally chartered savingsand Trust Company (“Salin Bank”), an Indiana commercial bank and wholly-owned subsidiary of Wolverine,Salin, through mergers effective October 17, 2017.March 26, 2019. Under the terms of the Merger Agreement, shareholders of WolverineSalin received 1.5228 $14.00 $WolverineSalin common stock. WolverineSalin shares outstanding at the closing to be exchanged were 2,129,331,275, and the shares of Horizon common stock issued to WolverineSalin shareholders totaled 3,241,045.6,563,697. The Salin shareholders received cash in lieu of fractional shares. Based upon the October 16, 2017March 25, 2019 closing price of $19.37$15.65 per share of Horizon common stock immediately prior to the effectiveness of the merger less the consideration used to pay off Wolverine Bancorp’s ESOP loan receivable, the transaction has an implied valuation of approximately $93.8
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Assets | Liabilities | |||||||||
Cash and due from banks | $ | 44,450 | Deposits | |||||||
Non-interest bearing | $ | 25,221 | ||||||||
Loans | NOW accounts | 8,026 | ||||||||
Commercial | 276,167 | Savings and money market | 129,044 | |||||||
Residential mortgage | 30,603 | Certificates of deposit | 94,688 | |||||||
|
| |||||||||
Consumer | 3,897 | Total deposits | 256,979 | |||||||
|
| |||||||||
Total loans | 310,667 | |||||||||
Premises and equipment, net | 2,941 | Borrowings | 36,970 | |||||||
FRB and FHLB stock | 2,700 | Interest payable | 214 | |||||||
Goodwill | 26,827 | Other liabilities | 6,154 | |||||||
Core deposit intangible | 2,024 | |||||||||
Interest receivable | 584 | |||||||||
Other assets | 3,897 | |||||||||
|
|
|
| |||||||
Total assets purchased | $ | 394,090 | Total liabilities assumed | $ | 300,317 | |||||
|
|
|
| |||||||
Common shares issued | $ | 62,111 | ||||||||
Cash paid | 31,662 | |||||||||
|
| |||||||||
Total estimated purchase price | $ | 93,773 | ||||||||
|
|
if the accounting had been completed as of the acquisition date.
Assets | ||||
Cash and due from banks | $ | 152,745 | ||
Investment securities, available for sale | 54,319 | |||
Loans | ||||
Commercial | 352,798 | |||
Residential mortgage | 131,008 | |||
Consumer | 85,112 | |||
Total loans | 568,918 | |||
Premises and equipment, net | 19,700 | |||
FRB and FHLB stock | 3,571 | |||
Goodwill | 31,232 | |||
Core deposit intangible | 19,818 | |||
Interest receivable | 2,488 | |||
Other assets | 111,651 | |||
Total assets purchased | $ | 964,442 | ||
Common shares issued | $ | 102,722 | ||
Cash paid | 24,000 | |||
Total purchase price | $ | 126,722 | ||
Liabilities | ||||
Deposits | ||||
Non-interest bearing | $ | 188,744 | ||
NOW accounts | 207,567 | |||
Savings and money market | 274,504 | |||
Certificates of deposit | 70,535 | |||
Total deposits | 741,350 | |||
Borrowings | 70,495 | |||
Subordinated debentures | 18,259 | |||
Interest payable | 826 | |||
Other liabilities | 6,790 | |||
Total liabilities assumed | $ | 837,720 | ||
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table details an estimate of the acquired loans that are accounted for in accordance with ASCOctober 17, 2017.
Contractually required principal and interest at acquisition | $ | 21,912 | ||
Contractual cash flows not expected to be collected (nonaccretable differences) | 1,832 | |||
|
| |||
Expected cash flows at acquisition | 20,080 | |||
Interest component of expected cash flows (accretable discount) | 2,267 | |||
|
| |||
Fair value of acquired loans accounted for under ASC310-30 | $ | 17,813 | ||
|
|
March 26, 2019. Final valuation estimates have not yet been determined for acquired loans as of June 30, 2019. If information becomes available which would indicate adjustments to the purchase price allocation, such adjustments would be made prospectively.
Contractually required principal and interest at acquisition | $ | 22,672 | ||
Contractual cash flows not expected to be collected (nonaccretable differences) | 6,694 | |||
Expected cash flows at acquisition | 15,978 | |||
Interest component of expected cash flows (accretable discount) | 735 | |||
Fair value of acquired loans accounted for under ASC 310-30 | $ | 15,243 | ||
Lafayette Community Bancorp
On September 1, 2017, Horizon completed the acquisition
Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Lafayette acquisition is detailed in the following table.
Assets | Liabilities | |||||||||
Cash and due from banks | $ | 24,846 | Deposits | |||||||
Investment securities, available for sale | 6 | Non-interest bearing | $ | 34,990 | ||||||
NOW accounts | 30,174 | |||||||||
Loans | Savings and money market | 53,663 | ||||||||
Commercial | 116,258 | Certificates of deposit | 32,520 | |||||||
|
| |||||||||
Residential mortgage | 12,761 | Total deposits | 151,347 | |||||||
Consumer | 5,280 | |||||||||
|
| |||||||||
Total loans | 134,299 | |||||||||
Premises and equipment, net | 7,818 | Interest payable | 42 | |||||||
FHLB stock | 395 | Other liabilities | 990 | |||||||
Goodwill | 15,408 | |||||||||
Core deposit intangible | 2,085 | |||||||||
Interest receivable | 338 | |||||||||
Other assets | 1,649 | |||||||||
|
|
|
| |||||||
Total assets purchased | $ | 186,844 | Total liabilities assumed | $ | 152,379 | |||||
|
|
|
| |||||||
Common shares issued | $ | 30,044 | (1) | |||||||
Cash paid | 4,421 | |||||||||
|
| |||||||||
Total estimated purchase price | $ | 34,465 | ||||||||
|
|
|
Of the total estimated purchase price of $34.5 million, $2.1 million has been allocated to core deposit intangible. Additionally, $15.4 million has been allocated to goodwill and none of the purchase price is deductible. The core deposit intangible will be amortized over 10 years on a straight-line basis.
The Company acquired various loans in the acquisition that had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected.
Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such aspast-due andnon-accrual status, borrower credit scores and recentloan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds.
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table details an estimate of the acquired loans that are accounted for in accordance with ASC310-30 as of September 1, 2017.
Contractually required principal and interest at acquisition | $ | 6,128 | ||
Contractual cash flows not expected to be collected (nonaccretable differences) | 1,326 | |||
|
| |||
Expected cash flows at acquisition | 4,802 | |||
Interest component of expected cash flows (accretable discount) | 933 | |||
|
| |||
Fair value of acquired loans accounted for under ASC310-30 | $ | 3,869 | ||
|
|
Final estimates of certain loans, those for which specific credit-related deterioration, since origination, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition of these loans is based on reasonable expectation about the timing and amount of cash flows to be collected.
Bargersville Branch Purchase
On February 3, 2017, Horizon completed the purchase and assumption of certain assets and liabilities of a single branch of First Farmers Bank & Trust Company, in Bargersville, Indiana. Net cash of $11.0 million was received in the transaction, representing the deposit balances assumed at closing, net of amounts paid for loans acquired in the transaction of $3.4 million and a 3.0% premium on deposits. Customer deposit balances were recorded at $14.8 million and a core deposit intangible of $452,000 was recorded in the transaction, which will be amortized over 10 years on a straight line basis. There was no goodwill generated in the transaction.
Three Months Ended | Six Months Ended | |||||||
June 30 | June 30 | |||||||
2017 | 2017 | |||||||
Summary of Operations: | ||||||||
Net Interest Income | $ | 32,038 | $ | 62,164 | ||||
Provision for Loan Losses | (1,090 | ) | (1,337 | ) | ||||
|
|
|
| |||||
Net Interest Income after Provision for Loan Losses | 33,128 | 63,501 | ||||||
Non-interest Income | 8,662 | 16,565 | ||||||
Non-interest Expense | 26,714 | 51,398 | ||||||
|
|
|
| |||||
Income before Income Taxes | 15,076 | 28,668 | ||||||
Income Tax Expense | 4,549 | 8,412 | ||||||
|
|
|
| |||||
Net Income | 10,527 | 20,256 | ||||||
|
|
|
| |||||
Net Income Available to Common Shareholders | $ | 10,527 | $ | 20,256 | ||||
|
|
|
| |||||
Basic Earnings per Share | $ | 0.32 | $ | 0.61 | ||||
Diluted Earnings per Share | $ | 0.31 | $ | 0.60 |
periods.
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | June 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Summary of Operations: | ||||||||||||||||
Net Interest Income | $ | 41,529 | $ | 41,066 | $ | 83,711 | $ | 81,685 | ||||||||
Provision for Loan Losses | 896 | 835 | 1,560 | 2,002 | ||||||||||||
Net Interest Income after Provision for Loan Losses | 40,633 | 40,231 | 82,151 | 79,683 | ||||||||||||
Non-interest Income | 10,898 | 10,842 | 20,024 | 20,841 | ||||||||||||
Non-interest Expense | 31,584 | 32,410 | 73,736 | 65,579 | ||||||||||||
Income before Income Taxes | 19,947 | 18,663 | 28,439 | 34,945 | ||||||||||||
Income Tax Expense | 3,305 | 2,733 | 5,322 | 5,198 | ||||||||||||
Net Income | 16,642 | 15,930 | 23,117 | 29,747 | ||||||||||||
Net Income Available to Common Shareholders | $ | 16,642 | $ | 15,930 | $ | 23,117 | $ | 29,747 | ||||||||
Basic Earnings per Share | $ | 0.37 | $ | 0.42 | $ | 0.51 | $ | 0.78 | ||||||||
Diluted Earnings per Share | $ | 0.37 | $ | 0.41 | $ | 0.51 | $ | 0.77 |
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The
Note 3 – Securities
The fair value
June 30, 2019 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available for sale | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 9,915 | $ | 2 | $ | (16 | ) | $ | 9,901 | |||||||
State and municipal | 253,201 | 8,090 | (1,126 | ) | 260,165 | |||||||||||
Federal agency collateralized mortgage obligations | 229,166 | 2,878 | (522 | ) | 231,522 | |||||||||||
Federal agency mortgage-backed pools | 153,378 | 818 | (673 | ) | 153,523 | |||||||||||
Corporate notes | 17,608 | 700 | — | 18,308 | ||||||||||||
Total available for sale investment securities | $ | 663,268 | $ | 12,488 | $ | (2,337 | ) | $ | 673,419 | |||||||
Held to maturity | ||||||||||||||||
State and municipal | $ | 195,719 | $ | 6,196 | $ | (220 | ) | $ | 201,695 | |||||||
Federal agency collateralized mortgage obligations | 4,884 | 12 | (19 | ) | 4,877 | |||||||||||
Federal agency mortgage-backed pools | 13,165 | 167 | (13 | ) | 13,319 | |||||||||||
Total held to maturity investment securities | $ | 213,768 | $ | 6,375 | $ | (252 | ) | $ | 219,891 | |||||||
December 31, 2018 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available for sale | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 16,815 | $ | 1 | $ | (208 | ) | $ | 16,608 | |||||||
State and municipal | 210,386 | 1,495 | (2,578 | ) | 209,303 | |||||||||||
Federal agency collateralized mortgage obligations | 187,563 | 625 | (3,185 | ) | 185,003 | |||||||||||
Federal agency mortgage-backed pools | 183,479 | 80 | (4,823 | ) | 178,736 | |||||||||||
Corporate notes | 10,666 | 107 | (75 | ) | 10,698 | |||||||||||
Total available for sale investment securities | $ | 608,909 | $ | 2,308 | $ | (10,869 | ) | $ | 600,348 | |||||||
Held to maturity | ||||||||||||||||
State and municipal | $ | 191,269 | $ | 1,773 | $ | (3,366 | ) | $ | 189,676 | |||||||
Federal agency collateralized mortgage obligations | 5,144 | 6 | (120 | ) | 5,030 | |||||||||||
Federal agency mortgage-backed pools | 13,699 | 74 | (206 | ) | 13,567 | |||||||||||
Total held to maturity investment securities | $ | 210,112 | $ | 1,853 | $ | (3,692 | ) | $ | 208,273 | |||||||
2019.
June 30, 2018 | December 31, 2017 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Available for sale | ||||||||||||||||
Within one year | $ | 10,054 | $ | 10,013 | $ | 13,347 | $ | 13,326 | ||||||||
One to five years | 29,238 | 28,739 | 40,468 | 40,193 | ||||||||||||
Five to ten years | 80,973 | 79,937 | 50,473 | 51,156 | ||||||||||||
After ten years | 46,846 | 46,377 | 63,306 | 64,326 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
167,111 | 165,066 | 167,594 | 169,001 | |||||||||||||
Federal agency collateralized mortgage obligations | 168,382 | 164,134 | 132,871 | 130,365 | ||||||||||||
Federal agency mortgage-backed pools | 203,593 | 196,995 | 211,487 | 208,657 | ||||||||||||
Private labeled mortgage-backed pools | — | — | 1,650 | 1,642 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale investment securities | $ | 539,086 | $ | 526,195 | $ | 513,602 | $ | 509,665 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Held to maturity | ||||||||||||||||
Within one year | $ | 5,578 | $ | 5,546 | $ | 1,948 | $ | 1,934 | ||||||||
One to five years | 43,825 | 44,383 | 40,603 | 41,531 | ||||||||||||
Five to ten years | 103,804 | 103,252 | 89,801 | 91,249 | ||||||||||||
After ten years | 36,872 | 34,199 | 47,484 | 45,683 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
190,079 | 187,380 | 179,836 | 180,397 | |||||||||||||
Federal agency collateralized mortgage obligations | 5,409 | 5,260 | 5,734 | 5,682 | ||||||||||||
Federal agency mortgage-backed pools | 14,279 | 14,090 | 14,878 | 15,006 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total held to maturity investment securities | $ | 209,767 | $ | 206,730 | $ | 200,448 | $ | 201,085 | ||||||||
|
|
|
|
|
|
|
|
June 30, 2019 | December 31, 2018 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Available for sale | ||||||||||||||||
Within one year | $ | 26,850 | $ | 26,836 | $ | 20,532 | $ | 20,448 | ||||||||
One to five years | 40,560 | 40,333 | 42,476 | 41,705 | ||||||||||||
Five to ten years | 88,574 | 92,128 | 107,839 | 107,107 | ||||||||||||
After ten years | 124,740 | 129,077 | 67,020 | 67,349 | ||||||||||||
280,724 | 288,374 | 237,867 | 236,609 | |||||||||||||
Federal agency collateralized mortgage obligations | 229,166 | 231,522 | 187,563 | 185,003 | ||||||||||||
Federal agency mortgage-backed pools | 153,378 | 153,523 | 183,479 | 178,736 | ||||||||||||
Total available for sale investment securities | $ | 663,268 | $ | 673,419 | $ | 608,909 | $ | 600,348 | ||||||||
Held to maturity | ||||||||||||||||
Within one year | $ | 2,481 | $ | 2,499 | $ | 70 | $ | 70 | ||||||||
One to five years | 56,121 | 57,124 | 48,732 | 49,324 | ||||||||||||
Five to ten years | 101,195 | 104,168 | 101,809 | 101,533 | ||||||||||||
After ten years | 35,922 | 37,904 | 40,658 | 38,749 | ||||||||||||
195,719 | 201,695 | 191,269 | 189,676 | |||||||||||||
Federal agency collateralized mortgage obligations | 4,884 | 4,877 | 5,144 | 5,030 | ||||||||||||
Federal agency mortgage-backed pools | 13,165 | 13,319 | 13,699 | 13,567 | ||||||||||||
Total held to maturity investment securities | $ | 213,768 | $ | 219,891 | $ | 210,112 | $ | 208,273 | ||||||||
June 30, 2018 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 20,387 | $ | (352 | ) | $ | 3,832 | $ | (83 | ) | $ | 24,219 | $ | (435 | ) | |||||||||
State and municipal | 149,412 | (4,495 | ) | 37,546 | (1,865 | ) | 186,958 | (6,360 | ) | |||||||||||||||
Federal agency collateralized mortgage obligations | 67,216 | (1,507 | ) | 67,923 | (3,010 | ) | 135,139 | (4,517 | ) | |||||||||||||||
Federal agency mortgage-backed pools | 119,369 | (3,073 | ) | 84,772 | (3,797 | ) | 204,141 | (6,870 | ) | |||||||||||||||
Private labeled mortgage-backed pools | — | — | — | — | — | — | ||||||||||||||||||
Corporate notes | 971 | (4 | ) | — | — | 971 | (4 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total temporarily impaired securities | $ | 357,355 | $ | (9,431 | ) | $ | 194,073 | $ | (8,755 | ) | $ | 551,428 | $ | (18,186 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 15,882 | $ | (180 | ) | $ | 2,870 | $ | (45 | ) | $ | 18,752 | $ | (225 | ) | |||||||||
State and municipal | 54,312 | (2,758 | ) | 30,691 | (844 | ) | 85,003 | (3,602 | ) | |||||||||||||||
Federal agency collateralized mortgage obligations | 54,006 | (589 | ) | 73,462 | (2,031 | ) | 127,468 | (2,620 | ) | |||||||||||||||
Federal agency mortgage-backed pools | 103,926 | (1,019 | ) | 86,846 | (2,054 | ) | 190,772 | (3,073 | ) | |||||||||||||||
Private labeled mortgage-backed pools | 1,642 | (8 | ) | — | — | 1,642 | (8 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total temporarily impaired securities | $ | 229,768 | $ | (4,554 | ) | $ | 193,869 | $ | (4,974 | ) | $ | 423,637 | $ | (9,528 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | — | $ | — | $ | 3,399 | $ | (16 | ) | $ | 3,399 | $ | (16 | ) | ||||||||||
State and municipal | 72,943 | (1,039 | ) | 16,097 | (307 | ) | 89,040 | (1,346 | ) | |||||||||||||||
Federal agency collateralized mortgage obligations | 3,706 | (1 | ) | 52,991 | (540 | ) | 56,697 | (541 | ) | |||||||||||||||
Federal agency mortgage-backed pools | 1,671 | (1 | ) | 78,972 | (685 | ) | 80,643 | (686 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 78,320 | $ | (1,041 | ) | $ | 151,459 | $ | (1,548 | ) | $ | 229,779 | $ | (2,589 | ) | |||||||||
December 31, 2018 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | — | $ | — | $ | 9,707 | $ | (208 | ) | $ | 9,707 | $ | (208 | ) | ||||||||||
State and municipal | 75,163 | (1,628 | ) | 106,335 | (4,316 | ) | 181,498 | (5,944 | ) | |||||||||||||||
Federal agency collateralized mortgage obligations | 6,450 | (25 | ) | 106,257 | (3,280 | ) | 112,707 | (3,305 | ) | |||||||||||||||
Federal agency mortgage-backed pools | 5,739 | (39 | ) | 175,865 | (4,990 | ) | 181,604 | (5,029 | ) | |||||||||||||||
Corporate notes | 5,263 | (75 | ) | — | — | 5,263 | (75 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 92,615 | $ | (1,767 | ) | $ | 398,164 | $ | (12,794 | ) | $ | 490,779 | $ | (14,561 | ) | |||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Sales of securities available for sale | ||||||||||||||||
Proceeds | $ | — | $ | 3,013 | $ | 9,836 | $ | 5,103 | ||||||||
Gross gains | — | 110 | 37 | 145 | ||||||||||||
Gross losses | — | (113 | ) | (26 | ) | (113 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Sales of securities available for sale | ||||||||||||||||
Proceeds | $ | 74,048 | $ | — | $ | 91,635 | $ | 9,836 | ||||||||
Gross gains | 99 | — | 158 | 37 | ||||||||||||
Gross losses | (199 | ) | — | (243 | ) | (26 | ) |
June 30 | December 31 | |||||||
2018 | 2017 | |||||||
Commercial | ||||||||
Working capital and equipment | $ | 744,842 | $ | 720,477 | ||||
Real estate, including agriculture | 857,336 | 880,861 | ||||||
Tax exempt | 36,857 | 36,324 | ||||||
Other | 33,963 | 32,066 | ||||||
|
|
|
| |||||
Total | 1,672,998 | 1,669,728 | ||||||
Real estate | ||||||||
1-4 family | 627,137 | 599,217 | ||||||
Other | 7,499 | 7,543 | ||||||
|
|
|
| |||||
Total | 634,636 | 606,760 | ||||||
Consumer | ||||||||
Auto | 289,361 | 244,003 | ||||||
Recreation | 13,158 | 8,728 | ||||||
Real estate/home improvement | 38,096 | 37,052 | ||||||
Home equity | 161,047 | 165,240 | ||||||
Unsecured | 3,996 | 3,479 | ||||||
Other | 2,208 | 2,497 | ||||||
|
|
|
| |||||
Total | 507,866 | 460,999 | ||||||
Mortgage warehouse | 109,016 | 94,508 | ||||||
|
|
|
| |||||
Total loans | 2,924,516 | 2,831,995 | ||||||
Allowance for loan losses | (17,071 | ) | (16,394 | ) | ||||
|
|
|
| |||||
Loans, net | $ | 2,907,445 | $ | 2,815,601 | ||||
|
|
|
|
June 30 | December 31 | |||||||
2019 | 2018 | |||||||
Commercial | ||||||||
Working capital and equipment | $ | 917,533 | $ | 804,083 | ||||
Real estate, including agriculture | 1,017,138 | 834,037 | ||||||
Tax exempt | 61,015 | 48,975 | ||||||
Other | 66,937 | 34,495 | ||||||
Total | 2,062,623 | 1,721,590 | ||||||
Real estate | ||||||||
1-4 family | 806,390 | 659,754 | ||||||
Other | 7,675 | 8,387 | ||||||
Total | 814,065 | 668,141 | ||||||
Consumer | ||||||||
Auto | 343,876 | 327,413 | ||||||
Recreation | 16,257 | 13,975 | ||||||
Real estate/home improvement | 44,988 | 39,587 | ||||||
Home equity | 239,358 | 163,209 | ||||||
Unsecured | 7,455 | 4,043 | ||||||
Other | 2,618 | 1,254 | ||||||
Total | 654,552 | 549,481 | ||||||
Mortgage warehouse | 133,428 | 74,120 | ||||||
Total loans | 3,664,668 | 3,013,332 | ||||||
Allowance for loan losses | (18,305 | ) | (17,820 | ) | ||||
Loans, net | $ | 3,646,363 | $ | 2,995,512 | ||||
June 30, 2018 | ||||||||||||||||
Loan Balance | Interest Due | Deferred Fees/ (Costs) | Recorded Investment | |||||||||||||
Owner occupied real estate | $ | 591,273 | $ | 1,446 | $ | 2,000 | $ | 594,719 | ||||||||
Non-owner occupied real estate | 678,913 | 980 | 2,100 | 681,993 | ||||||||||||
Residential spec homes | 11,614 | 27 | 45 | 11,686 | ||||||||||||
Development & spec land | 34,384 | 97 | 28 | 34,509 | ||||||||||||
Commercial and industrial | 352,213 | 2,573 | 428 | 355,214 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total commercial | 1,668,397 | 5,123 | 4,601 | 1,678,121 | ||||||||||||
Residential mortgage | 610,871 | 1,827 | 2,180 | 614,878 | ||||||||||||
Residential construction | 21,585 | 40 | — | 21,625 | ||||||||||||
Mortgage warehouse | 109,016 | 480 | — | 109,496 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total real estate | 741,472 | 2,347 | 2,180 | 745,999 | ||||||||||||
Direct installment | 39,065 | 103 | (576 | ) | 38,592 | |||||||||||
Indirect installment | 276,317 | 607 | — | 276,924 | ||||||||||||
Home equity | 194,637 | 883 | (1,577 | ) | 193,943 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer | 510,019 | 1,593 | (2,153 | ) | 509,459 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans | 2,919,888 | 9,063 | 4,628 | 2,933,579 | ||||||||||||
Allowance for loan losses | (17,071 | ) | — | — | (17,071 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net loans | $ | 2,902,817 | $ | 9,063 | $ | 4,628 | $ | 2,916,508 | ||||||||
|
|
|
|
|
|
|
| |||||||||
December 31, 2017 | ||||||||||||||||
Loan Balance | Interest Due | Deferred Fees/ (Costs) | Recorded Investment | |||||||||||||
Owner occupied real estate | $ | 571,982 | $ | 1,511 | $ | 1,917 | $ | 575,410 | ||||||||
Non-owner occupied real estate | 678,945 | 1,138 | 2,478 | 682,561 | ||||||||||||
Residential spec homes | 16,431 | 63 | 80 | 16,574 | ||||||||||||
Development & spec land | 48,838 | 117 | 579 | 49,534 | ||||||||||||
Commercial and industrial | 347,871 | 2,572 | 607 | 351,050 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total commercial | 1,664,067 | 5,401 | 5,661 | 1,675,129 | ||||||||||||
Residential mortgage | 588,358 | 1,776 | 2,375 | 592,509 | ||||||||||||
Residential construction | 16,027 | 39 | — | 16,066 | ||||||||||||
Mortgage warehouse | 94,508 | 480 | — | 94,988 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total real estate | 698,893 | 2,295 | 2,375 | 703,563 | ||||||||||||
Direct installment | 37,841 | 113 | (552 | ) | 37,402 | |||||||||||
Indirect installment | 227,323 | 528 | 168 | 228,019 | ||||||||||||
Home equity | 197,578 | 889 | (1,359 | ) | 197,108 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer | 462,742 | 1,530 | (1,743 | ) | 462,529 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans | 2,825,702 | 9,226 | 6,293 | 2,841,221 | ||||||||||||
Allowance for loan losses | (16,394 | ) | — | — | (16,394 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net loans | $ | 2,809,308 | $ | 9,226 | $ | 6,293 | $ | 2,824,827 | ||||||||
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||
Loan Balance | Interest Due | Deferred Costs/(Fees) | Recorded Investment | |||||||||||||
Owner occupied real estate | $ | 709,597 | $ | 1,253 | $ | (1,584 | ) | $ | 709,266 | |||||||
Non-owner occupied real estate | 783,092 | 1,464 | (1,701 | ) | 782,855 | |||||||||||
Residential spec homes | 14,862 | 36 | (24 | ) | 14,874 | |||||||||||
Development & spec land | 41,102 | 179 | 71 | 41,352 | ||||||||||||
Commercial and industrial | 518,880 | 4,806 | (1,672 | ) | 522,014 | |||||||||||
Total commercial | 2,067,533 | 7,738 | (4,910 | ) | 2,070,361 | |||||||||||
Residential mortgage | 798,813 | 2,521 | (7,151 | ) | 794,183 | |||||||||||
Residential construction | 22,403 | 57 | — | 22,460 | ||||||||||||
Mortgage warehouse | 133,428 | 480 | — | 133,908 | ||||||||||||
Total real estate | 954,644 | 3,058 | (7,151 | ) | 950,551 | |||||||||||
Direct installment | 46,468 | 156 | 808 | 47,432 | ||||||||||||
Indirect installment | 329,773 | 806 | — | 330,579 | ||||||||||||
Home equity | 275,396 | 1,505 | 2,107 | 279,008 | ||||||||||||
Total consumer | 651,637 | 2,467 | 2,915 | 657,019 | ||||||||||||
Total loans | 3,673,814 | 13,263 | (9,146 | ) | 3,677,931 | |||||||||||
Allowance for loan losses | (18,305 | ) | — | — | (18,305 | ) | ||||||||||
Net loans | $ | 3,655,509 | $ | 13,263 | $ | (9,146 | ) | $ | 3,659,626 | |||||||
December 31, 2018 | ||||||||||||||||
Loan Balance | Interest Due | Deferred Costs/(Fees) | Recorded Investment | |||||||||||||
Owner occupied real estate | $ | 561,463 | $ | 1,240 | $ | (1,629 | ) | $ | 561,074 | |||||||
Non-owner occupied real estate | 717,814 | 1,063 | (1,839 | ) | 717,038 | |||||||||||
Residential spec homes | 5,199 | 13 | (2 | ) | 5,210 | |||||||||||
Development & spec land | 46,547 | 131 | (12 | ) | 46,666 | |||||||||||
Commercial and industrial | 394,346 | 3,149 | (297 | ) | 397,198 | |||||||||||
Total commercial | 1,725,369 | 5,596 | (3,779 | ) | 1,727,186 | |||||||||||
Residential mortgage | 646,136 | 1,861 | (2,025 | ) | 645,972 | |||||||||||
Residential construction | 24,030 | 42 | — | 24,072 | ||||||||||||
Mortgage warehouse | 74,120 | 480 | — | 74,600 | ||||||||||||
Total real estate | 744,286 | 2,383 | (2,025 | ) | 744,644 | |||||||||||
Direct installment | 38,173 | 103 | 566 | 38,842 | ||||||||||||
Indirect installment | 314,177 | 738 | — | 314,915 | ||||||||||||
Home equity | 194,766 | 973 | 1,799 | 197,538 | ||||||||||||
Total consumer | 547,116 | 1,814 | 2,365 | 551,295 | ||||||||||||
Total loans | 3,016,771 | 9,793 | (3,439 | ) | 3,023,125 | |||||||||||
Allowance for loan losses | (17,820 | ) | — | — | (17,820 | ) | ||||||||||
Net loans | $ | 2,998,951 | $ | 9,793 | $ | (3,439 | ) | $ | 3,005,305 | |||||||
June 30, 2018 | ||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Outstanding Balance | Allowance for Loan Losses | Carrying Amount | |||||||||||||||||||
Heartland | $ | 254 | $ | 193 | $ | — | $ | 447 | $ | — | $ | 447 | ||||||||||||
Summit | 3,301 | 592 | — | 3,893 | — | 3,893 | ||||||||||||||||||
Peoples | 296 | 112 | — | 408 | — | 408 | ||||||||||||||||||
Kosciusko | 791 | 207 | — | 998 | — | 998 | ||||||||||||||||||
LaPorte | 855 | 974 | 30 | 1,859 | — | 1,859 | ||||||||||||||||||
Lafayette | 3,481 | — | — | 3,481 | — | 3,481 | ||||||||||||||||||
Wolverine | 10,020 | — | — | 10,020 | — | 10,020 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 18,998 | $ | 2,078 | $ | 30 | $ | 21,106 | $ | — | $ | 21,106 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Outstanding Balance | Allowance for Loan Losses | Carrying Amount | |||||||||||||||||||
Heartland | $ | 390 | $ | 229 | $ | — | $ | 619 | $ | — | $ | 619 | ||||||||||||
Summit | 3,653 | 870 | — | 4,523 | — | 4,523 | ||||||||||||||||||
Peoples | 315 | 126 | — | 441 | — | 441 | ||||||||||||||||||
Kosciusko | 838 | 403 | — | 1,241 | — | 1,241 | ||||||||||||||||||
LaPorte | 1,034 | 1,004 | 33 | 2,071 | — | 2,071 | ||||||||||||||||||
Lafayette | 4,271 | — | — | 4,271 | — | 4,271 | ||||||||||||||||||
Wolverine | 16,697 | — | — | 16,697 | — | 16,697 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 27,198 | $ | 2,632 | $ | 33 | $ | 29,863 | $ | — | $ | 29,863 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Outstanding Balance | Allowance for Loan Losses | Carrying Amount | |||||||||||||||||||
Heartland | $ | 217 | $ | 152 | $ | — | $ | 369 | $ | — | $ | 369 | ||||||||||||
Summit | 213 | 515 | — | 728 | — | 728 | ||||||||||||||||||
Peoples | 249 | 40 | — | 289 | — | 289 | ||||||||||||||||||
Kosciusko | 672 | 148 | — | 820 | 195 | 625 | ||||||||||||||||||
LaPorte | 663 | 818 | 24 | 1,505 | — | 1,505 | ||||||||||||||||||
Lafayette | 2,002 | — | — | 2,002 | — | 2,002 | ||||||||||||||||||
Wolverine | 5,606 | — | — | 5,606 | 19 | 5,587 | ||||||||||||||||||
Salin | 8,075 | 1,855 | 1,096 | 11,026 | — | 11,026 | ||||||||||||||||||
Total | $ | 17,697 | $ | 3,528 | $ | 1,120 | $ | 22,345 | $ | 214 | $ | 22,131 | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Outstanding Balance | Allowance for Loan Losses | Carrying Amount | |||||||||||||||||||
Heartland | $ | 232 | $ | 175 | $ | — | $ | 407 | $ | — | $ | 407 | ||||||||||||
Summit | 323 | 555 | — | 878 | — | 878 | ||||||||||||||||||
Peoples | 270 | 58 | — | 328 | — | 328 | ||||||||||||||||||
Kosciusko | 746 | 155 | — | 901 | — | 901 | ||||||||||||||||||
LaPorte | 753 | 947 | 27 | 1,727 | 60 | 1,667 | ||||||||||||||||||
Lafayette | 3,080 | — | — | 3,080 | — | 3,080 | ||||||||||||||||||
Wolverine | 7,841 | — | — | 7,841 | — | 7,841 | ||||||||||||||||||
Total | $ | 13,245 | $ | 1,890 | $ | 27 | $ | 15,162 | $ | 60 | $ | 15,102 | ||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||||||||||||
Beginning balance | Additions | Accretion | Reclassification from nonaccretable difference | Disposals | Ending balance | |||||||||||||||||||
Heartland | $ | 452 | $ | — | $ | (68 | ) | $ | — | $ | (193 | ) | $ | 191 | ||||||||||
Summit | 147 | — | (34 | ) | — | (6 | ) | 107 | ||||||||||||||||
Kosciusko | 386 | — | (40 | ) | — | — | 346 | |||||||||||||||||
LaPorte | 980 | — | (75 | ) | — | (7 | ) | 898 | ||||||||||||||||
Lafayette | 933 | — | (176 | ) | — | (2 | ) | 755 | ||||||||||||||||
Wolverine | 2,267 | — | (538 | ) | — | (680 | ) | 1,049 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 5,165 | $ | — | $ | (931 | ) | $ | — | $ | (888 | ) | $ | 3,346 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Six Months Ended June 30, 2017 | ||||||||||||||||||||||||
Beginning balance | Additions | Accretion | Reclassification from nonaccretable difference | Disposals | Ending balance | |||||||||||||||||||
Heartland | $ | 557 | $ | — | $ | (67 | ) | $ | — | $ | (6 | ) | $ | 484 | ||||||||||
Summit | 502 | — | (182 | ) | — | (2 | ) | 318 | ||||||||||||||||
Peoples | 389 | — | (388 | ) | — | (1 | ) | — | ||||||||||||||||
Kosciusko | 530 | — | (58 | ) | — | (18 | ) | 454 | ||||||||||||||||
LaPorte | 1,479 | — | (150 | ) | — | (153 | ) | 1,176 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 3,457 | $ | — | $ | (845 | ) | $ | — | $ | (180 | ) | $ | 2,432 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019 | ||||||||||||||||||||||||
Beginning balance | Additions | Accretion | Reclassification from nonaccretable difference | Disposals | Ending balance | |||||||||||||||||||
Heartland | $ | 174 | $ | — | $ | (16 | ) | $ | — | $ | — | $ | 158 | |||||||||||
Summit | 42 | — | (5 | ) | — | (11 | ) | 26 | ||||||||||||||||
Kosciusko | 300 | — | (33 | ) | — | (1 | ) | 266 | ||||||||||||||||
LaPorte | 829 | — | (59 | ) | — | — | 770 | |||||||||||||||||
Lafayette | 609 | — | (67 | ) | — | (180 | ) | 362 | ||||||||||||||||
Wolverine | 698 | — | (212 | ) | — | (120 | ) | 366 | ||||||||||||||||
Salin | — | 735 | — | — | — | 735 | ||||||||||||||||||
Total | $ | 2,652 | $ | 735 | $ | (392 | ) | $ | — | $ | (312 | ) | $ | 2,683 | ||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||||||||||||
Beginning balance | Additions | Accretion | Reclassification from nonaccretable difference | Disposals | Ending balance | |||||||||||||||||||
Heartland | $ | 452 | $ | — | $ | (68 | ) | $ | — | $ | (193 | ) | $ | 191 | ||||||||||
Summit | 147 | — | (34 | ) | — | (6 | ) | 107 | ||||||||||||||||
Kosciusko | 386 | — | (40 | ) | — | — | 346 | |||||||||||||||||
LaPorte | 980 | — | (75 | ) | — | (7 | ) | 898 | ||||||||||||||||
Lafayette | 933 | — | (176 | ) | — | (2 | ) | 755 | ||||||||||||||||
Wolverine | 2,267 | — | (538 | ) | — | (680 | ) | 1,049 | ||||||||||||||||
Total | $ | 5,165 | $ | — | $ | (931 | ) | $ | — | $ | (888 | ) | $ | 3,346 | ||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Balance at beginning of the period | $ | 16,474 | $ | 15,054 | $ | 16,394 | $ | 14,837 | ||||||||
Loanscharged-off: | ||||||||||||||||
Commercial | ||||||||||||||||
Owner occupied real estate | — | — | 13 | — | ||||||||||||
Non-owner occupied real estate | — | — | — | — | ||||||||||||
Residential spec homes | — | — | — | — | ||||||||||||
Development & spec land | — | 1 | — | 1 | ||||||||||||
Commercial and industrial | — | 254 | — | 259 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total commercial | — | 255 | 13 | 260 | ||||||||||||
Real estate | ||||||||||||||||
Residential mortgage | 3 | 1 | 15 | 52 | ||||||||||||
Residential construction | — | — | — | — | ||||||||||||
Mortgage warehouse | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total real estate | 3 | 1 | 15 | 52 | ||||||||||||
Consumer | ||||||||||||||||
Direct installment | 49 | 9 | 104 | 29 | ||||||||||||
Indirect installment | 365 | 323 | 870 | 608 | ||||||||||||
Home equity | — | 21 | 131 | 71 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer | 414 | 353 | 1,105 | 708 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loanscharged-off | 417 | 609 | 1,133 | 1,020 | ||||||||||||
Recoveries of loans previouslycharged-off: | ||||||||||||||||
Commercial | ||||||||||||||||
Owner occupied real estate | — | 1 | 12 | 1 | ||||||||||||
Non-owner occupied real estate | 12 | 3 | 17 | 25 | ||||||||||||
Residential spec homes | 2 | 2 | 4 | 4 | ||||||||||||
Development & spec land | — | — | — | — | ||||||||||||
Commercial and industrial | 26 | 30 | 58 | 141 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total commercial | 40 | 36 | 91 | 171 | ||||||||||||
Real estate | ||||||||||||||||
Residential mortgage | 5 | 9 | 11 | 22 | ||||||||||||
Residential construction | — | — | — | — | ||||||||||||
Mortgage warehouse | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total real estate | 5 | 9 | 11 | 22 | ||||||||||||
Consumer | ||||||||||||||||
Direct installment | 21 | 16 | 32 | 32 | ||||||||||||
Indirect installment | 132 | 152 | 271 | 265 | ||||||||||||
Home equity | 181 | 39 | 203 | 60 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer | 334 | 207 | 506 | 357 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loan recoveries | 379 | 252 | 608 | 550 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net loanscharged-off | 38 | 357 | 525 | 470 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Provision charged to operating expense | ||||||||||||||||
Commercial | 985 | 41 | (306 | ) | 928 | |||||||||||
Real estate | (117 | ) | 93 | (369 | ) | (474 | ) | |||||||||
Consumer | (233 | ) | 196 | 1,877 | 206 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total provision charged to operating expense | 635 | 330 | 1,202 | 660 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Balance at the end of the period | $ | 17,071 | $ | 15,027 | $ | 17,071 | $ | 15,027 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Balance at beginning of the period | $ | 17,821 | $ | 16,474 | $ | 17,820 | $ | 16,394 | ||||||||
Loans charged-off: | ||||||||||||||||
Commercial | ||||||||||||||||
Owner occupied real estate | 336 | — | 337 | 13 | ||||||||||||
Non-owner occupied real estate | — | — | 64 | — | ||||||||||||
Residential spec homes | 3 | — | 3 | — | ||||||||||||
Development & spec land | — | — | — | — | ||||||||||||
Commercial and industrial | — | — | 12 | — | ||||||||||||
Total commercial | 339 | — | 416 | 13 | ||||||||||||
Real estate | ||||||||||||||||
Residential mortgage | 48 | 3 | 48 | 15 | ||||||||||||
Residential construction | — | — | — | — | ||||||||||||
Mortgage warehouse | — | — | — | — | ||||||||||||
Total real estate | 48 | 3 | 48 | 15 | ||||||||||||
Consumer | ||||||||||||||||
Direct installment | 37 | 49 | 65 | 104 | ||||||||||||
Indirect installment | 251 | 365 | 791 | 870 | ||||||||||||
Home equity | 39 | — | 55 | 131 | ||||||||||||
Total consumer | 327 | 414 | 911 | 1,105 | ||||||||||||
Total loans charged-off | 714 | 417 | 1,375 | 1,133 | ||||||||||||
Recoveries of loans previously charged-off: | ||||||||||||||||
Commercial | ||||||||||||||||
Owner occupied real estate | — | — | — | 12 | ||||||||||||
Non-owner occupied real estate | 4 | 12 | 10 | 17 | ||||||||||||
Residential spec homes | 1 | 2 | 3 | 4 | ||||||||||||
Development & spec land | — | — | — | — | ||||||||||||
Commercial and industrial | 69 | 26 | 77 | 58 | ||||||||||||
Total commercial | 74 | 40 | 90 | 91 | ||||||||||||
Real estate | ||||||||||||||||
Residential mortgage | 7 | 5 | 34 | 11 | ||||||||||||
Residential construction | — | — | — | — | ||||||||||||
Mortgage warehouse | — | — | — | — | ||||||||||||
Total real estate | 7 | 5 | 34 | 11 | ||||||||||||
Consumer | ||||||||||||||||
Direct installment | 75 | 21 | 86 | 32 | ||||||||||||
Indirect installment | 182 | 132 | 383 | 271 | ||||||||||||
Home equity | (36 | ) | 181 | 7 | 203 | |||||||||||
Total consumer | 221 | 334 | 476 | 506 | ||||||||||||
Total loan recoveries | 302 | 379 | 600 | 608 | ||||||||||||
Net loans charged-off | 412 | 38 | 775 | 525 | ||||||||||||
Provision charged to operating expense | ||||||||||||||||
Commercial | 590 | 985 | 1,712 | (306 | ) | |||||||||||
Real estate | 211 | (117 | ) | 104 | (369 | ) | ||||||||||
Consumer | 95 | (233 | ) | (556 | ) | 1,877 | ||||||||||
Total provision charged to operating expense | 896 | 635 | 1,260 | 1,202 | ||||||||||||
Balance at the end of the period | $ | 18,305 | $ | 17,071 | $ | 18,305 | $ | 17,071 | ||||||||
June 30, 2018 | ||||||||||||||||||||
Commercial | Real Estate | Mortgage Warehousing | Consumer | Total | ||||||||||||||||
Allowance For Loan Losses | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 184 | $ | — | $ | — | $ | — | $ | 184 | ||||||||||
Collectively evaluated for impairment | 8,681 | 1,761 | 1,084 | 5,361 | 16,887 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total ending allowance balance | $ | 8,865 | $ | 1,761 | $ | 1,084 | $ | 5,361 | $ | 17,071 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 8,999 | $ | — | $ | — | $ | — | $ | 8,999 | ||||||||||
Collectively evaluated for impairment | 1,669,122 | 636,503 | 109,496 | 509,459 | 2,924,580 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total ending loans balance | $ | 1,678,121 | $ | 636,503 | $ | 109,496 | $ | 509,459 | $ | 2,933,579 | ||||||||||
|
|
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||||||
Commercial | Real Estate | Mortgage Warehousing | Consumer | Total | ||||||||||||||||
Allowance For Loan Losses | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 787 | $ | — | $ | — | $ | — | $ | 787 | ||||||||||
Collectively evaluated for impairment | 11,094 | 1,732 | 1,040 | 3,652 | 17,518 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
Total ending allowance balance | $ | 11,881 | $ | 1,732 | $ | 1,040 | $ | 3,652 | $ | 18,305 | ||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 8,641 | $ | — | $ | — | $ | — | $ | 8,641 | ||||||||||
Collectively evaluated for impairment | 2,058,892 | 821,216 | 133,428 | 651,637 | 3,665,173 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
Total ending loans balance | $ | 2,067,533 | $ | 821,216 | $ | 133,428 | $ | 651,637 | $ | 3,673,814 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Commercial | Real Estate | Mortgage Warehousing | Consumer | Total | ||||||||||||||||
Allowance For Loan Losses | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 184 | $ | — | $ | — | $ | — | $ | 184 | ||||||||||
Collectively evaluated for impairment | 8,909 | 2,188 | 1,030 | 4,083 | 16,210 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total ending allowance balance | $ | 9,093 | $ | 2,188 | $ | 1,030 | $ | 4,083 | $ | 16,394 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 7,187 | $ | — | $ | — | $ | — | $ | 7,187 | ||||||||||
Collectively evaluated for impairment | 1,667,942 | 608,575 | 94,988 | 462,529 | 2,834,034 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total ending loans balance | $ | 1,675,129 | $ | 608,575 | $ | 94,988 | $ | 462,529 | $ | 2,841,221 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2018 | ||||||||||||||||||||
Commercial | Real Estate | Mortgage Warehousing | Consumer | Total | ||||||||||||||||
Allowance For Loan Losses | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,035 | $ | — | $ | — | $ | — | $ | 1,035 | ||||||||||
Collectively evaluated for impairment | 9,460 | 1,676 | 1,006 | 4,643 | 16,785 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
Total ending allowance balance | $ | 10,495 | $ | 1,676 | $ | 1,006 | $ | 4,643 | $ | 17,820 | ||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 6,708 | $ | — | $ | — | $ | — | $ | 6,708 | ||||||||||
Collectively evaluated for impairment | 1,718,661 | 670,166 | 74,120 | 547,116 | 3,010,063 | |||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | |||||||||||||||
Total ending loans balance | $ | 1,725,369 | $ | 670,166 | $ | 74,120 | $ | 547,116 | $ | 3,016,771 | ||||||||||
June 30, 2018 | ||||||||||||||||||||
Non-accrual | Loans Past Due Over 90 Days Still Accruing | Non-peforming TDRs | Performing TDRs | Total Non-performing Loans | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 5,629 | $ | — | $ | — | $ | — | $ | 5,629 | ||||||||||
Non-owner occupied real estate | 1,038 | — | 305 | — | 1,343 | |||||||||||||||
Residential spec homes | — | — | — | — | — | |||||||||||||||
Development & spec land | 72 | — | — | — | 72 | |||||||||||||||
Commercial and industrial | 1,943 | — | — | — | 1,943 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 8,682 | — | 305 | — | 8,987 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 1,823 | 11 | 440 | 1,641 | 3,915 | |||||||||||||||
Residential construction | — | — | — | — | — | |||||||||||||||
Mortgage warehouse | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total real estate | 1,823 | 11 | 440 | 1,641 | 3,915 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 54 | — | — | — | 54 | |||||||||||||||
Direct installment purchased | — | — | — | — | — | |||||||||||||||
Indirect installment | 619 | 38 | — | — | 657 | |||||||||||||||
Home equity | 1,377 | — | 149 | 270 | 1,796 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer | 2,050 | 38 | 149 | 270 | 2,507 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 12,555 | $ | 49 | $ | 894 | $ | 1,911 | $ | 15,409 | ||||||||||
|
|
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||||||
Non-accrual | Loans Past Due Over 90 Days Still Accruing | Non-peforming TDRs | Performing TDRs | Total Non-performing Loans | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 3,694 | $ | 63 | $ | 389 | $ | 139 | $ | 4,285 | ||||||||||
Non-owner occupied real estate | 616 | — | 635 | — | 1,251 | |||||||||||||||
Residential spec homes | — | — | — | — | — | |||||||||||||||
Development & spec land | 140 | — | — | — | 140 | |||||||||||||||
Commercial and industrial | 3,021 | — | — | — | 3,021 | |||||||||||||||
Total commercial | 7,471 | 63 | 1,024 | 139 | 8,697 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 4,219 | 77 | 416 | 1,732 | 6,444 | |||||||||||||||
Residential construction | — | — | — | — | — | |||||||||||||||
Mortgage warehouse | — | — | — | — | — | |||||||||||||||
Total real estate | 4,219 | 77 | 416 | 1,732 | 6,444 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 36 | — | — | — | 36 | |||||||||||||||
Indirect installment | 1,129 | 156 | — | — | 1,285 | |||||||||||||||
Home equity | 1,909 | 95 | 136 | 327 | 2,467 | |||||||||||||||
Total consumer | 3,074 | 251 | 136 | 327 | 3,788 | |||||||||||||||
Total | $ | 14,764 | $ | 391 | $ | 1,576 | $ | 2,198 | $ | 18,929 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Non-accrual | Loans Past Due Over 90 Days Still Accruing | Non-peforming TDRs | Performing TDRs | Total Non-performing Loans | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 4,877 | $ | — | $ | 11 | $ | 1 | $ | 4,889 | ||||||||||
Non-owner occupied real estate | 115 | — | 440 | — | 555 | |||||||||||||||
Residential spec homes | — | — | — | — | — | |||||||||||||||
Development & spec land | 176 | — | — | — | 176 | |||||||||||||||
Commercial and industrial | 1,734 | — | — | — | 1,734 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 6,902 | — | 451 | 1 | 7,354 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 3,693 | — | 351 | 1,450 | 5,494 | |||||||||||||||
Residential construction | — | — | — | 222 | 222 | |||||||||||||||
Mortgage warehouse | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total real estate | 3,693 | — | 351 | 1,672 | 5,716 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 160 | — | — | — | 160 | |||||||||||||||
Direct installment purchased | — | — | — | — | — | |||||||||||||||
Indirect installment | 1,041 | 167 | — | — | 1,208 | |||||||||||||||
Home equity | 1,480 | — | 211 | 285 | 1,976 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer | 2,681 | 167 | 211 | 285 | 3,344 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 13,276 | $ | 167 | $ | 1,013 | $ | 1,958 | $ | 16,414 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2018 | ||||||||||||||||||||
Non-accrual | Loans Past Due Over 90 Days Still Accruing | Non-peforming TDRs | Performing TDRs | Total Non-performing Loans | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 3,413 | $ | — | $ | — | $ | 109 | $ | 3,522 | ||||||||||
Non-owner occupied real estate | 554 | — | 492 | — | 1,046 | |||||||||||||||
Residential spec homes | — | — | — | — | — | |||||||||||||||
Development & spec land | 68 | — | — | — | 68 | |||||||||||||||
Commercial and industrial | 2,059 | 208 | — | — | 2,267 | |||||||||||||||
Total commercial | 6,094 | 208 | 492 | 109 | 6,903 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 2,846 | 180 | 423 | 1,558 | 5,007 | |||||||||||||||
Residential construction | — | — | — | — | — | |||||||||||||||
Mortgage warehouse | — | — | — | — | — | |||||||||||||||
Total real estate | 2,846 | 180 | 423 | 1,558 | 5,007 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 35 | — | — | — | 35 | |||||||||||||||
Indirect installment | 916 | 173 | — | — | 1,089 | |||||||||||||||
Home equity | 1,657 | 7 | 142 | 335 | 2,141 | |||||||||||||||
Total consumer | 2,608 | 180 | 142 | 335 | 3,265 | |||||||||||||||
Total | $ | 11,548 | $ | 568 | $ | 1,057 | $ | 2,002 | $ | 15,175 | ||||||||||
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
June 30, 2018 | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Loss Allocated | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | ||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | $ | 4,765 | $ | 4,762 | $ | — | $ | 5,271 | $ | 59 | $ | 5,303 | $ | 96 | ||||||||||||||
Non-owner occupied real estate | 1,344 | 1,360 | — | 1,591 | 5 | 1,559 | 10 | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | 72 | 70 | — | 71 | — | 73 | — | |||||||||||||||||||||
Commercial and industrial | 1,943 | 1,943 | — | 1,916 | 7 | 1,886 | 7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total commercial | 8,124 | 8,135 | — | 8,849 | 71 | 8,821 | 113 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | 864 | 864 | 184 | 871 | — | 885 | — | |||||||||||||||||||||
Non-owner occupied real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total commercial | 864 | 864 | 184 | 871 | — | 885 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 8,988 | $ | 8,999 | $ | 184 | $ | 9,720 | $ | 71 | $ | 9,706 | $ | 113 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
June 30, 2017 | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Loss Allocated | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | ||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | $ | 1,591 | $ | 1,592 | $ | — | $ | 1,538 | $ | 22 | $ | 1,233 | $ | 22 | ||||||||||||||
Non-owner occupied real estate | 467 | 467 | — | 471 | 2 | 432 | 2 | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | 107 | 107 | — | 230 | — | 234 | — | |||||||||||||||||||||
Commercial and industrial | 1,474 | 1,474 | — | 1,023 | 16 | 619 | 16 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total commercial | 3,639 | 3,640 | — | 3,262 | 40 | 2,518 | 40 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Non-owner occupied real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 3,639 | $ | 3,640 | $ | — | $ | 3,262 | $ | 40 | $ | 2,518 | $ | 40 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Loss Allocated | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | ||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | $ | 3,851 | $ | 3,851 | $ | — | $ | 5,987 | $ | 76 | $ | 6,005 | $ | 130 | ||||||||||||||
Non-owner occupied real estate | 1,116 | 1,143 | — | 1,260 | 33 | 1,293 | 64 | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | 140 | 139 | — | 226 | 2 | 224 | 2 | |||||||||||||||||||||
Commercial and industrial | 1,797 | 1,778 | — | 2,073 | 15 | 2,078 | 22 | |||||||||||||||||||||
Total commercial | 6,904 | 6,911 | — | 9,546 | 126 | 9,600 | 218 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | 371 | 371 | 3 | 372 | 10 | 365 | 10 | |||||||||||||||||||||
Non-owner occupied real estate | 135 | 135 | 40 | 135 | — | 135 | — | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | 1,224 | 1,224 | 744 | 1,252 | 25 | 1,258 | 25 | |||||||||||||||||||||
Total commercial | 1,730 | 1,730 | 787 | 1,759 | 35 | 1,758 | 35 | |||||||||||||||||||||
Total | $ | 8,634 | $ | 8,641 | $ | 787 | $ | 11,305 | $ | 161 | $ | 11,358 | $ | 253 | ||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Loss Allocated | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | Average Balance in Impaired Loans | Cash/Accrual Interest Income Recognized | ||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | $ | 4,765 | $ | 4,762 | $ | — | $ | 5,271 | $ | 59 | $ | 5,303 | $ | 96 | ||||||||||||||
Non-owner occupied real estate | 1,344 | 1,360 | — | 1,591 | 5 | 1,559 | 10 | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | 72 | 70 | — | 71 | — | 73 | — | |||||||||||||||||||||
Commercial and industrial | 1,943 | 1,943 | — | 1,916 | 7 | 1,886 | 7 | |||||||||||||||||||||
Total commercial | 8,124 | 8,135 | — | 8,849 | 71 | 8,821 | 113 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | 864 | 864 | 184 | 871 | — | 885 | — | |||||||||||||||||||||
Non-owner occupied real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Residential spec homes | — | — | — | — | — | — | — | |||||||||||||||||||||
Development & spec land | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total commercial | 864 | 864 | 184 | 871 | — | 885 | — | |||||||||||||||||||||
Total | $ | 8,988 | $ | 8,999 | $ | 184 | $ | 9,720 | $ | 71 | $ | 9,706 | $ | 113 | ||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Loans Not Past Due | Total | |||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Owner occupied real estate | $ | 897 | $ | 138 | $ | — | $ | 1,035 | $ | 590,238 | $ | 591,273 | ||||||||||||
Non-owner occupied real estate | 42 | 895 | — | 937 | 677,976 | 678,913 | ||||||||||||||||||
Residential spec homes | — | — | — | — | 11,614 | 11,614 | ||||||||||||||||||
Development & spec land | — | — | — | — | 34,384 | 34,384 | ||||||||||||||||||
Commercial and industrial | 175 | 966 | — | 1,141 | 351,072 | 352,213 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total commercial | 1,114 | 1,999 | — | 3,113 | 1,665,284 | 1,668,397 | ||||||||||||||||||
Real estate | ||||||||||||||||||||||||
Residential mortgage | 822 | 302 | 11 | 1,135 | 609,736 | 610,871 | ||||||||||||||||||
Residential construction | — | — | — | — | 21,585 | 21,585 | ||||||||||||||||||
Mortgage warehouse | — | — | — | — | 109,016 | 109,016 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total real estate | 822 | 302 | 11 | 1,135 | 740,337 | 741,472 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Direct installment | 78 | 26 | — | 104 | 38,961 | 39,065 | ||||||||||||||||||
Indirect installment | 1,513 | 256 | 38 | 1,807 | 274,510 | 276,317 | ||||||||||||||||||
Home equity | 451 | 30 | — | 481 | 194,156 | 194,637 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total consumer | 2,042 | 312 | 38 | 2,392 | 507,627 | 510,019 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 3,978 | $ | 2,613 | $ | 49 | $ | 6,640 | $ | 2,913,248 | $ | 2,919,888 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Percentage of total loans | 0.14 | % | 0.09 | % | 0.00 | % | 0.23 | % | 99.77 | % | ||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Loans Not Past Due | Total | |||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Owner occupied real estate | $ | 1,613 | $ | 1,950 | $ | — | $ | 3,563 | $ | 568,419 | $ | 571,982 | ||||||||||||
Non-owner occupied real estate | 512 | 122 | — | 634 | 678,311 | 678,945 | ||||||||||||||||||
Residential spec homes | — | — | — | — | 16,431 | 16,431 | ||||||||||||||||||
Development & spec land | 31 | — | — | 31 | 48,807 | 48,838 | ||||||||||||||||||
Commercial and industrial | 520 | 1 | — | 521 | 347,350 | 347,871 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total commercial | 2,676 | 2,073 | — | 4,749 | 1,659,318 | 1,664,067 | ||||||||||||||||||
Real estate | ||||||||||||||||||||||||
Residential mortgage | 1,248 | 49 | — | 1,297 | 587,061 | 588,358 | ||||||||||||||||||
Residential construction | 63 | — | — | 63 | 15,964 | 16,027 | ||||||||||||||||||
Mortgage warehouse | — | — | — | — | 94,508 | 94,508 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total real estate | 1,311 | 49 | — | 1,360 | 697,533 | 698,893 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Direct installment | 78 | 10 | — | 88 | 37,753 | 37,841 | ||||||||||||||||||
Indirect installment | 1,859 | 244 | 167 | 2,270 | 225,053 | 227,323 | ||||||||||||||||||
Home equity | 502 | 527 | — | 1,029 | 196,549 | 197,578 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total consumer | 2,439 | 781 | 167 | 3,387 | 459,355 | 462,742 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 6,426 | $ | 2,903 | $ | 167 | $ | 9,496 | $ | 2,816,206 | $ | 2,825,702 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Percentage of total loans | 0.23 | % | 0.10 | % | 0.01 | % | 0.34 | % | 99.66 | % |
June 30, 2019 | ||||||||||||||||||||||||||||
Current | 30-59 DaysPast Due | 60-89 DaysPast Due | 90 Days or Greater Past Due | Non-accrual | Total Past Due & Non-accrual Loans | Total | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | $ | 705,186 | $ | 265 | $ | — | $ | 63 | $ | 4,083 | $ | 4,411 | $ | 709,597 | ||||||||||||||
Non-owner occupied real estate | 781,012 | 829 | — | — | 1,251 | 2,080 | 783,092 | |||||||||||||||||||||
Residential spec homes | 14,862 | — | — | — | — | — | 14,862 | |||||||||||||||||||||
Development & spec land | 40,509 | 453 | — | — | 140 | 593 | 41,102 | |||||||||||||||||||||
Commercial and industrial | 513,126 | 2,234 | 499 | — | 3,021 | 5,754 | 518,880 | |||||||||||||||||||||
Total commercial | 2,054,695 | 3,781 | 499 | 63 | 8,495 | 12,838 | 2,067,533 | |||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||
Residential mortgage | 791,704 | 2,272 | 125 | 77 | 4,635 | 7,109 | 798,813 | |||||||||||||||||||||
Residential construction | 22,403 | — | — | — | — | — | 22,403 | |||||||||||||||||||||
Mortgage warehouse | 133,428 | — | — | — | — | — | 133,428 | |||||||||||||||||||||
Total real estate | 947,535 | 2,272 | 125 | 77 | 4,635 | 7,109 | 954,644 | |||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Direct installment | 46,203 | 180 | 49 | — | 36 | 265 | 46,468 | |||||||||||||||||||||
Indirect installment | 326,970 | 1,268 | 250 | 156 | 1,129 | 2,803 | 329,773 | |||||||||||||||||||||
Home equity | 272,047 | 640 | 569 | 95 | 2,045 | 3,349 | 275,396 | |||||||||||||||||||||
Total consumer | 645,220 | 2,088 | 868 | 251 | 3,210 | 6,417 | 651,637 | |||||||||||||||||||||
Total | $ | 3,647,450 | $ | 8,141 | $ | 1,492 | $ | 391 | $ | 16,340 | $ | 26,364 | $ | 3,673,814 | ||||||||||||||
Percentage of total loans | 99.28 | % | 0.22 | % | 0.04 | % | 0.01 | % | 0.44 | % | 0.72 | % | 100.00 | % |
December 31, 2018 | ||||||||||||||||||||||||||||
Current | 30-59 DaysPast Due | 60-89 DaysPast Due | 90 Days or Greater Past Due | Non-accrual | Total Past Due & Non-accrual Loans | Total | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Owner occupied real estate | $ | 556,516 | $ | 537 | $ | 997 | $ | — | $ | 3,413 | $ | 4,947 | $ | 561,463 | ||||||||||||||
Non-owner occupied real estate | 716,574 | 175 | 19 | — | 1,046 | 1,240 | 717,814 | |||||||||||||||||||||
Residential spec homes | 4,707 | 492 | — | — | — | 492 | 5,199 | |||||||||||||||||||||
Development & spec land | 46,479 | — | — | — | 68 | 68 | 46,547 | |||||||||||||||||||||
Commercial and industrial | 390,828 | 515 | 736 | 208 | 2,059 | 3,518 | 394,346 | |||||||||||||||||||||
Total commercial | 1,715,104 | 1,719 | 1,752 | 208 | 6,586 | 10,265 | 1,725,369 | |||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||
Residential mortgage | 641,500 | 1,131 | 56 | 180 | 3,269 | 4,636 | 646,136 | |||||||||||||||||||||
Residential construction | 24,030 | — | — | — | — | — | 24,030 | |||||||||||||||||||||
Mortgage warehouse | 74,120 | — | — | — | — | — | 74,120 | |||||||||||||||||||||
Total real estate | 739,650 | 1,131 | 56 | 180 | 3,269 | 4,636 | 744,286 | |||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Direct installment | 38,027 | 93 | 18 | — | 35 | 146 | 38,173 | |||||||||||||||||||||
Indirect installment | 311,494 | 1,396 | 198 | 173 | 916 | 2,683 | 314,177 | |||||||||||||||||||||
Home equity | 192,162 | 761 | 37 | 7 | 1,799 | 2,604 | 194,766 | |||||||||||||||||||||
Total consumer | 541,794 | 2,250 | 253 | 180 | 2,750 | 5,433 | 547,116 | |||||||||||||||||||||
Total | $ | 2,996,548 | $ | 5,100 | $ | 2,061 | $ | 568 | $ | 12,605 | $ | 20,334 | $ | 3,016,771 | ||||||||||||||
Percentage of total loans | 99.33 | % | 0.17 | % | 0.07 | % | 0.02 | % | 0.42 | % | 0.67 | % | 100.00 | % |
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
|
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
June 30, 2018 | ||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 569,089 | $ | 5,772 | $ | 16,412 | $ | — | $ | 591,273 | ||||||||||
Non-owner occupied real estate | 667,031 | 5,888 | 5,994 | — | 678,913 | |||||||||||||||
Residential spec homes | 11,614 | — | — | — | 11,614 | |||||||||||||||
Development & spec land | 34,168 | 144 | 72 | — | 34,384 | |||||||||||||||
Commercial and industrial | 335,442 | 4,719 | 12,052 | — | 352,213 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 1,617,344 | 16,523 | 34,530 | — | 1,668,397 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 606,967 | — | 3,904 | — | 610,871 | |||||||||||||||
Residential construction | 21,585 | — | — | — | 21,585 | |||||||||||||||
Mortgage warehouse | 109,016 | — | — | — | 109,016 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total real estate | 737,568 | — | 3,904 | — | 741,472 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 39,011 | — | 54 | — | 39,065 | |||||||||||||||
Indirect installment | 275,660 | — | 657 | — | 276,317 | |||||||||||||||
Home equity | 192,841 | — | 1,796 | — | 194,637 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer | 507,512 | — | 2,507 | — | 510,019 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,862,424 | $ | 16,523 | $ | 40,941 | $ | — | $ | 2,919,888 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Percentage of total loans | 98.03 | % | 0.57 | % | 1.40 | % | 0.00 | % |
June 30, 2019 | ||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 686,630 | $ | 5,711 | $ | 17,256 | $ | — | $ | 709,597 | ||||||||||
Non-owner occupied real estate | 764,517 | 13,002 | 5,573 | — | 783,092 | |||||||||||||||
Residential spec homes | 14,862 | — | — | — | 14,862 | |||||||||||||||
Development & spec land | 37,847 | 97 | 3,158 | — | 41,102 | |||||||||||||||
Commercial and industrial | 482,043 | 25,214 | 11,623 | — | 518,880 | |||||||||||||||
Total commercial | 1,985,899 | 44,024 | 37,610 | — | 2,067,533 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 792,446 | — | 6,367 | — | 798,813 | |||||||||||||||
Residential construction | 22,403 | — | — | — | 22,403 | |||||||||||||||
Mortgage warehouse | 133,428 | — | — | — | 133,428 | |||||||||||||||
Total real estate | 948,277 | — | 6,367 | — | 954,644 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 46,433 | — | 35 | — | 46,468 | |||||||||||||||
Indirect installment | 328,488 | — | 1,285 | — | 329,773 | |||||||||||||||
Home equity | 272,929 | — | 2,467 | — | 275,396 | |||||||||||||||
Total consumer | 647,850 | — | 3,787 | — | 651,637 | |||||||||||||||
Total | $ | 3,582,026 | $ | 44,024 | $ | 47,764 | $ | — | $ | 3,673,814 | ||||||||||
Percentage of total loans | 97.50 | % | 1.20 | % | 1.30 | % | 0.00 | % | 100.00 | % | ||||||||||
December 31, 2018 | ||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 538,177 | $ | 6,618 | $ | 16,668 | $ | — | $ | 561,463 | ||||||||||
Non-owner occupied real estate | 702,269 | 9,682 | 5,863 | — | 717,814 | |||||||||||||||
Residential spec homes | 5,199 | — | — | — | 5,199 | |||||||||||||||
Development & spec land | 46,382 | 97 | 68 | — | 46,547 | |||||||||||||||
Commercial and industrial | 379,607 | 6,655 | 8,084 | — | 394,346 | |||||||||||||||
Total commercial | 1,671,634 | 23,052 | 30,683 | — | 1,725,369 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 641,309 | — | 4,827 | — | 646,136 | |||||||||||||||
Residential construction | 24,030 | — | — | — | 24,030 | |||||||||||||||
Mortgage warehouse | 74,120 | — | — | — | 74,120 | |||||||||||||||
Total real estate | 739,459 | — | 4,827 | — | 744,286 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 38,138 | — | 35 | — | 38,173 | |||||||||||||||
Indirect installment | 313,088 | — | 1,089 | — | 314,177 | |||||||||||||||
Home equity | 192,625 | — | 2,141 | — | 194,766 | |||||||||||||||
Total consumer | 543,851 | — | 3,265 | — | 547,116 | |||||||||||||||
Total | $ | 2,954,944 | $ | 23,052 | $ | 38,775 | $ | — | $ | 3,016,771 | ||||||||||
Percentage of total loans | 97.95 | % | 0.76 | % | 1.29 | % | 0.00 | % | 100.00 | % |
December 31, 2017 | ||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
Commercial | ||||||||||||||||||||
Owner occupied real estate | $ | 545,158 | $ | 8,622 | $ | 18,202 | $ | — | $ | 571,982 | ||||||||||
Non-owner occupied real estate | 670,074 | 3,864 | 5,007 | — | 678,945 | |||||||||||||||
Residential spec homes | 16,431 | — | — | — | 16,431 | |||||||||||||||
Development & spec land | 47,726 | 886 | 226 | — | 48,838 | |||||||||||||||
Commercial and industrial | 326,756 | 7,448 | 13,667 | — | 347,871 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 1,606,145 | 20,820 | 37,102 | — | 1,664,067 | |||||||||||||||
Real estate | ||||||||||||||||||||
Residential mortgage | 582,864 | — | 5,494 | — | 588,358 | |||||||||||||||
Residential construction | 15,805 | — | 222 | — | 16,027 | |||||||||||||||
Mortgage warehouse | 94,508 | — | — | — | 94,508 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total real estate | 693,177 | — | 5,716 | — | 698,893 | |||||||||||||||
Consumer | ||||||||||||||||||||
Direct installment | 37,681 | — | 160 | — | 37,841 | |||||||||||||||
Indirect installment | 226,115 | — | 1,208 | — | 227,323 | |||||||||||||||
Home equity | 195,602 | — | 1,976 | — | 197,578 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer | 459,398 | — | 3,344 | — | 462,742 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,758,720 | $ | 20,820 | $ | 46,162 | $ | — | $ | 2,825,702 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Percentage of total loans | 97.63 | % | 0.74 | % | 1.63 | % | 0.00 | % |
Year | Amount | |||
2019 | $ | 240 | ||
2020 | 476 | |||
2021 | 476 | |||
2022 | 504 | |||
2023 and thereafter | 1,609 | |||
Total lease payments | $ | 3,305 | ||
Less: Interest | (175 | ) | ||
Present value of lease liabilities | $ | 3,130 | ||
June 30, 2018 | ||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||||||||||
Overnight and Continuous | Up to one year | One to three years | Three to five years | Five to ten years | Beyond ten years | Total | ||||||||||||||||||||||
Repurchase Agreements andrepurchase-to-maturity transactions | ||||||||||||||||||||||||||||
Repurchase Agreements | $ | 43,702 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 43,702 | ||||||||||||||
Securities pledged for Repurchase Agreements | ||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | $ | 34,344 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 34,344 | ||||||||||||||
Federal agency mortgage-backed pools | 31,208 | — | — | — | — | — | 31,208 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 65,552 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 65,552 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||||||||||
Overnight and Continuous | Up to one year | One to three years | Three to five years | Five to ten years | Beyond ten years | Total | ||||||||||||||||||||||
Repurchase Agreements and repurchase-to-maturity transactions | ||||||||||||||||||||||||||||
Repurchase Agreements | $ | 92,256 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 92,256 | ||||||||||||||
Securities pledged for Repurchase Agreements | ||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | $ | 36,183 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 36,183 | ||||||||||||||
Federal agency mortgage-backed pools | 68,684 | — | — | — | — | — | 68,684 | |||||||||||||||||||||
Total | $ | 104,867 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 104,867 | ||||||||||||||
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
–
2018.
Asset Derivatives | Liability Derivatives | |||||||||||||||
June 30, 2018 | June 30, 2018 | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Interest rate contracts | Loans | $ | — | Other liabilities | $ | 3,579 | ||||||||||
Interest rate contracts | Other Assets | 3,579 | Other liabilities | 969 | ||||||||||||
|
|
|
| |||||||||||||
Total derivatives desginated as hedging instruments | 3,579 | 4,548 | ||||||||||||||
|
|
|
| |||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Mortgage loan contracts | Other assets | 257 | Other liabilities | 4 | ||||||||||||
|
|
|
| |||||||||||||
Total derivatives not designated as hedging instruments | 257 | 4 | ||||||||||||||
|
|
|
| |||||||||||||
Total derivatives | $ | 3,836 | $ | 4,552 | ||||||||||||
|
|
|
| |||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Interest rate contracts | Loans | $ | — | Other liabilities | $ | 811 | ||||||||||
Interest rate contracts | Other Assets | 811 | Other liabilities | 1,728 | ||||||||||||
|
|
|
| |||||||||||||
Total derivatives desginated as hedging instruments | 811 | 2,539 | ||||||||||||||
|
|
|
| |||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Mortgage loan contracts | Other assets | 143 | Other liabilities | 3 | ||||||||||||
|
|
|
| |||||||||||||
Total derivatives not designated as hedging instruments | 143 | 3 | ||||||||||||||
|
|
|
| |||||||||||||
Total derivatives | $ | 954 | $ | 2,542 | ||||||||||||
|
|
|
|
Asset Derivatives | Liability Derivatives | |||||||||||||||
June 30, 2019 | June 30, 2019 | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Interest rate contracts | Loans | $ | 11,622 | Loans | $ | — | ||||||||||
Interest rate contracts | Other Assets | — | Other liabilities | 16,389 | ||||||||||||
Total derivatives desginated as hedging instruments | 11,622 | 16,389 | ||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Mortgage loan contracts | Other assets | 467 | Other liabilities | — | ||||||||||||
Total derivatives not designated as hedging instruments | 467 | — | ||||||||||||||
Total derivatives | $ | 12,089 | $ | 16,389 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
December 31, 2018 | December 31, 2018 | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Interest rate contracts | Loans | $ | — | Loans | $ | 42 | ||||||||||
Interest rate contracts | Other Assets | 42 | Other liabilities | 1,760 | ||||||||||||
Total derivatives desginated as hedging instruments | 42 | 1,802 | ||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Mortgage loan contracts | Other assets | 135 | Other liabilities | — | ||||||||||||
Total derivatives not designated as hedging instruments | 135 | — | ||||||||||||||
Total derivatives | $ | 177 | $ | 1,802 | ||||||||||||
Amount of Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||
Derivatives in cash flow hedging relationship | ||||||||||||||||
Interest rate contracts | $ | 279 | $ | 30 | $ | 879 | $ | 290 |
Amount of Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||
Derivatives in cash flow hedging relationship | ||||||||||||||||
Interest rate contracts | $ | (1,502 | ) | $ | 279 | $ | (2,376 | ) | $ | 879 |
35
Location of gain (loss) | Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||||
Derivative in fair value hedging relationship | ||||||||||||||||||
Interest rate contracts | Interest income - loans | $ | 2,768 | $ | 679 | $ | 574 | $ | 426 | |||||||||
Interest rate contracts | Interest income - loans | (2,768 | ) | (679 | ) | (574 | ) | (426 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $ | — | $ | — | $ | — | $ | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Location of gain (loss) | Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||||
Derivative not designated as hedging relationship | ||||||||||||||||||
Mortgage contracts | Other income - gain on sale of loans | $ | 112 | $ | (153 | ) | $ | 195 | $ | (212 | ) |
Location of gain (loss) recognized on derivative | Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||
Derivative in fair value hedging relationship | ||||||||||||||||||
Interest rate contracts | Interest income - loans | $ | (7,529 | ) | $ | 2,768 | $ | (11,580 | ) | $ | 574 | |||||||
Interest rate contracts | Interest income - loans | 7,529 | (2,768 | ) | 11,580 | (574 | ) | |||||||||||
Total | $ | — | $ | — | $ | — | $ | — | ||||||||||
Location of gain (loss) recognized on derivative | Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||
Derivative not designated as hedging relationship | ||||||||||||||||||
Mortgage contracts | Other income - gain on sale of loans | $ | 75 | $ | 112 | $ | 332 | $ | 195 |
Level 1 | Quoted prices in active markets for identical assets or liabilities |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
June 30, 2018 | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Available for sale securities | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 24,219 | $ | — | $ | 24,219 | $ | — | ||||||||
State and municipal | 134,981 | — | 134,981 | — | ||||||||||||
Federal agency collateralized mortgage obligations | 164,134 | — | 164,134 | — | ||||||||||||
Federal agency mortgage-backed pools | 196,995 | — | 196,995 | — | ||||||||||||
Private labeled mortgage-backed pools | — | — | — | — | ||||||||||||
Corporate notes | 5,866 | — | 5,866 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | 526,195 | — | 526,195 | — | ||||||||||||
Hedged loans | 155,742 | — | 155,742 | — | ||||||||||||
Forward sale commitments | 344 | — | 344 | — | ||||||||||||
Interest rate swap agreements | 3,939 | — | 3,939 | — | ||||||||||||
Commitments to originate loans | (21 | ) | — | (21 | ) | — |
June 30, 2019 | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Available for sale securities | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 9,901 | $ | — | $ | 9,901 | $ | — | ||||||||
State and municipal | 260,165 | — | 260,165 | — | ||||||||||||
Federal agency collateralized mortgage obligations | 231,522 | — | 231,522 | — | ||||||||||||
Federal agency mortgage-backed pools | 153,523 | — | 153,523 | — | ||||||||||||
Corporate notes | 18,308 | — | 18,308 | — | ||||||||||||
Total available for sale securities | 673,419 | — | 673,419 | — | ||||||||||||
Hedged loans | 258,180 | — | 258,180 | — | ||||||||||||
Forward sale commitments | 467 | — | 467 | — | ||||||||||||
Interest rate swap agreements | (16,389 | ) | — | (16,389 | ) | — | ||||||||||
Commitments to originate loans | — | — | — | — | ||||||||||||
December 31, 2018 | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Available for sale securities | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 16,608 | $ | — | $ | 16,608 | $ | — | ||||||||
State and municipal | 209,303 | — | 209,303 | — | ||||||||||||
Federal agency collateralized mortgage obligations | 185,003 | — | 185,003 | — | ||||||||||||
Federal agency mortgage-backed pools | 178,736 | — | 178,736 | — | ||||||||||||
Corporate notes | 10,698 | — | 10,698 | — | ||||||||||||
Total available for sale securities | 600,348 | — | 600,348 | — | ||||||||||||
Hedged loans | 209,161 | — | 209,161 | — | ||||||||||||
Forward sale commitments | 135 | — | 135 | — | ||||||||||||
Interest rate swap agreements | (1,801 | ) | — | (1,801 | ) | — | ||||||||||
Commitments to originate loans | — | — | — | — |
December 31, 2017 | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Available for sale securities | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 19,052 | $ | — | $ | 19,052 | $ | — | ||||||||
State and municipal | 149,564 | — | 149,564 | — | ||||||||||||
Federal agency collateralized mortgage obligations | 130,365 | — | 130,365 | — | ||||||||||||
Federal agency mortgage-backed pools | 208,657 | — | 208,657 | — | ||||||||||||
Private labeled mortgage-backed pools | 1,642 | — | 1,642 | — | ||||||||||||
Corporate notes | 385 | — | 385 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | 509,665 | — | 509,665 | — | ||||||||||||
Hedged loans | 154,575 | — | 154,575 | — | ||||||||||||
Forward sale commitments | 143 | — | 143 | — | ||||||||||||
Interest rate swap agreements | (917 | ) | — | (917 | ) | — | ||||||||||
Commitments to originate loans | (3 | ) | — | (3 | ) | — |
Non-interest Income | Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||
Total gains and losses from: | ||||||||||||||||
Hedged loans | $ | 976 | $ | 679 | $ | 3,744 | $ | 426 | ||||||||
Fair value interest rate swap agreements | (976 | ) | (679 | ) | (3,744 | ) | (426 | ) | ||||||||
Derivative loan commitments | 71 | (153 | ) | 183 | (212 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 71 | $ | (153 | ) | $ | 183 | $ | (212 | ) | |||||||
|
|
|
|
|
|
|
|
Non-interest Income | Three Months Ended | Six Months Ended | ||||||||||||||
Total gains and losses from: | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Hedged loans | $ | (7,529 | ) | $ | 976 | $ | (11,580 | ) | $ | 3,744 | ||||||
Fair value interest rate swap agreements | 7,529 | (976 | ) | 11,580 | (3,744 | ) | ||||||||||
Derivative loan commitments | 75 | 71 | 332 | 183 | ||||||||||||
$ | 75 | $ | 71 | $ | 332 | $ | 183 | |||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
June 30, 2019 | ||||||||||||||||
Impaired loans | $ | 7,847 | $ | — | $ | — | $ | 7,847 | ||||||||
Mortgage servicing rights | 13,652 | — | — | 13,652 | ||||||||||||
December 31, 2018 | ||||||||||||||||
Impaired loans | $ | 5,661 | $ | — | $ | — | $ | 5,661 | ||||||||
Mortgage servicing rights | 12,349 | — | — | 12,349 |
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
June 30, 2018 | ||||||||||||||||
Impaired loans | $ | 8,804 | $ | — | $ | — | $ | 8,804 | ||||||||
Mortgage servicing rights | 11,670 | — | — | 11,670 | ||||||||||||
December 31, 2017 | ||||||||||||||||
Impaired loans | $ | 6,957 | $ | — | $ | — | $ | 6,957 | ||||||||
Mortgage servicing rights | 11,602 | — | — | 11,602 |
June 30, 2018 | ||||||||||
Fair | Valuation | Unobservable | Range | |||||||
Value | Technique | Inputs | (Weighted Average) | |||||||
Impaired loans | $ | 8,804 | Collateral based measurement | Discount to reflect current market conditions and ultimate collectability | 0%-54.8% (2.0%) | |||||
Mortgage servicing rights | 11,670 | Discounted cash flows | Discount rate, Constant prepayment rate, Probability of default | 10.3%-11.3% (10.3%), 8.3%-16.5% (8.6%), 0.1%-1.7% (0.6%) | ||||||
December 31, 2017 | ||||||||||
Fair | Valuation | Unobservable | Range | |||||||
Value | Technique | Inputs | (Weighted Average) | |||||||
Impaired loans | $ | 6,957 | Collateral based measurement | Discount to reflect current market conditions and ultimate collectability | 0%-46.8% (2.6%) | |||||
Mortgage servicing rights | 11,602 | Discounted cash flows | Discount rate, Constant prepayment rate, Probability of default | 9.6%-10.8% (9.7%), 9.2%-27.7% (10.5%), 0%-1.5% (0.2%) |
June 30, 2019 | ||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | |||||||||
Impaired loans | $ | 7,847 | Collateral based measurement | Discount to reflect current market conditions and ultimate collectability | 0 %-100 %9.1 %) | |||||||
Mortgage servicing rights | 13,652 | Discounted cash flows | Discount rate, Constant prepayment rate, Probability of default | 9.7 %-10.0 %9.8 %),9.6 %-19.3 %11.0 %),0.0 %-1.7 %0.7 %) | ||||||||
December 31, 2018 | ||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | |||||||||
Impaired loans | $ | 5,661 | Collateral based measurement | Discount to reflect current market conditions and ultimate collectability | 0 %-100 %15.5 %) | |||||||
Mortgage servicing rights | 12,349 | Discounted cash flows | Discount rate, Constant prepayment rate, Probability of default | 10.2 %-11.0 %10.3 %),9.1 %-21.9 %9.3 %),0.1 %-2.8 %0.6 %) |
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
and FRB Stock and FRB stock is based on the price at which it may be resold to the FHLB and FRB.
FHLB.
June 30, 2018 | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 69,018 | $ | 69,018 | $ | — | $ | — | ||||||||
Investment securities, held to maturity | 209,767 | — | 206,730 | — | ||||||||||||
Loans held for sale | 3,000 | — | — | 3,000 | ||||||||||||
Loans (excluding loan level hedges), net | 2,751,703 | — | — | 2,585,501 | ||||||||||||
Stock in FHLB | 18,105 | — | 18,105 | — | ||||||||||||
Interest receivable | 12,993 | — | 12,993 | — | ||||||||||||
Liabilities | ||||||||||||||||
Non-interest bearing deposits | $ | 615,018 | $ | 615,018 | $ | — | $ | — | ||||||||
Interest bearing deposits | 2,401,145 | — | 2,263,817 | — | ||||||||||||
Borrowings | 524,846 | — | 520,701 | — | ||||||||||||
Subordinated debentures | 37,745 | — | 35,682 | — | ||||||||||||
Interest payable | 1,441 | — | 1,441 | — |
June 30, 2019 | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 94,686 | $ | 94,686 | $ | — | $ | — | ||||||||
Interest-earning time deposits | 8,090 | — | 8,107 | — | ||||||||||||
Investment securities, held to maturity | 213,768 | — | 219,891 | — | ||||||||||||
Loans held for sale | 3,185 | — | — | 3,185 | ||||||||||||
Loans (excluding loan level hedges), net | 3,388,183 | — | — | 3,247,837 | ||||||||||||
Stock in FHLB | 22,447 | — | 22,447 | — | ||||||||||||
Interest receivable | 19,015 | — | 19,015 | — | ||||||||||||
Liabilities | ||||||||||||||||
Non-interest bearing deposits | $ | 810,350 | $ | 810,350 | $ | — | $ | — | ||||||||
Interest bearing deposits | 3,120,425 | — | 3,068,227 | — | ||||||||||||
Borrowings | 436,233 | — | 433,258 | — | ||||||||||||
Subordinated debentures | 56,194 | — | 50,603 | — | ||||||||||||
Interest payable | 3,005 | — | 3,005 | — | ||||||||||||
December 31, 2018 | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 58,492 | $ | 58,492 | $ | — | $ | — | ||||||||
Interest-earning time deposits | 15,744 | — | 15,542 | — | ||||||||||||
Investment securities, held to maturity | 210,112 | — | 208,273 | — | ||||||||||||
Loans held for sale | 1,038 | — | — | 1,038 | ||||||||||||
Loans (excluding loan level hedges), net | 2,786,351 | — | — | 2,681,741 | ||||||||||||
Stock in FHLB | 18,073 | — | 18,073 | — | ||||||||||||
Interest receivable | 14,239 | — | 14,239 | — | ||||||||||||
Liabilities | ||||||||||||||||
Non-interest bearing deposits | $ | 642,129 | $ | 642,129 | $ | — | $ | — | ||||||||
Interest bearing deposits | 2,497,247 | — | 2,377,274 | — | ||||||||||||
Borrowings | 550,384 | — | 542,311 | — | ||||||||||||
Subordinated debentures | 37,837 | — | 35,711 | — | ||||||||||||
Interest payable | 2,031 | — | 2,031 | — |
December 31, 2017 | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 76,441 | $ | 76,441 | $ | — | $ | — | ||||||||
Investment securities, held to maturity | 200,448 | — | 201,085 | — | ||||||||||||
Loans held for sale | 3,094 | — | — | 3,094 | ||||||||||||
Loans (excluding loan level hedges), net | 2,661,026 | — | — | 2,585,879 | ||||||||||||
Stock in FHLB | 18,105 | — | 18,105 | — | ||||||||||||
Interest receivable | 16,244 | — | 16,244 | — | ||||||||||||
Liabilities | ||||||||||||||||
Non-interest bearing deposits | $ | 601,805 | $ | 601,805 | $ | — | $ | — | ||||||||
Interest bearing deposits | 2,279,198 | — | 2,156,487 | — | ||||||||||||
Borrowings | 564,157 | — | 560,057 | — | ||||||||||||
Subordinated debentures | 37,653 | — | 35,994 | — | ||||||||||||
Interest payable | 886 | — | 886 | — |
June 30 | December 31 | |||||||
2018 | 2017 | |||||||
Unrealized loss on securities available for sale | $ | (12,891 | ) | $ | (3,937 | ) | ||
Unamortized gain on securities held to maturity, previously transferred from AFS | 102 | 200 | ||||||
Unrealized loss on derivative instruments | (615 | ) | (1,728 | ) | ||||
Tax effect | 2,817 | 1,914 | ||||||
|
|
|
| |||||
Total accumulated other comprehensive loss | $ | (10,587 | ) | $ | (3,551 | ) | ||
|
|
|
|
June 30 2019 | December 31 2018 | |||||||
Unrealized gain (loss) on securities available for sale | $ | 10,151 | $ | (8,561 | ) | |||
Unamortized gain (loss) on securities held to maturity, previously transferred from AFS | (58 | ) | 10 | |||||
Unrealized loss on derivative instruments | (4,767 | ) | (1,760 | ) | ||||
Tax effect | (1,119 | ) | 2,167 | |||||
Total accumulated other comprehensive income (loss) | $ | 4,207 | $ | (8,144 | ) | |||
Quantitative measures established by regulation
To The minimum regulatory capital requirements are set forth in the table below.
Actual | Required for Capital1 Adequacy Purposes | Required For Capital1 Adequacy Purposes with Capital Buffer | Well Capitalized Under Prompt1 Corrective Action Provisions | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||||||
Total capital1(to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | $ | 403,480 | 13.07 | % | 246,952 | 8.00 | % | 285,539 | 9.25 | % | N/A | N/A | ||||||||||||||||||||
Bank | 392,814 | 12.77 | % | 246,109 | 8.00 | % | 284,563 | 9.25 | % | $ | 307,636 | 10.00 | % | |||||||||||||||||||
Tier 1 capital1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 386,409 | 12.52 | % | 185,214 | 6.00 | % | 223,800 | 7.25 | % | N/A | N/A | |||||||||||||||||||||
Bank | 375,684 | 12.21 | % | 184,581 | 6.00 | % | 223,035 | 7.25 | % | 246,108 | 8.00 | % | ||||||||||||||||||||
Common equity tier 1 capital1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 347,946 | 11.27 | % | 138,910 | 4.50 | % | 177,497 | 5.75 | % | N/A | N/A | |||||||||||||||||||||
Bank | 375,684 | 12.21 | % | 138,436 | 4.50 | % | 176,890 | 5.75 | % | 199,963 | 6.50 | % | ||||||||||||||||||||
Tier 1 capital1 (to average assets) | ||||||||||||||||||||||||||||||||
Consolidated | 386,409 | 9.94 | % | 155,556 | 4.00 | % | 155,556 | 4.00 | % | N/A | N/A | |||||||||||||||||||||
Bank | 375,684 | 9.65 | % | 155,805 | 4.00 | % | 155,805 | 4.00 | % | 194,756 | 5.00 | % | ||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||
Total capital1(to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | $ | 384,800 | 12.91 | % | $ | 238,543 | 8.00 | % | $ | 275,816 | 9.25 | % | N/A | N/A | ||||||||||||||||||
Bank | 382,788 | 12.85 | % | 238,386 | 8.00 | % | 275,634 | 9.25 | % | $ | 297,982 | 10.00 | % | |||||||||||||||||||
Tier 1 capital1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 368,355 | 12.35 | % | 178,907 | 6.00 | % | 216,180 | 7.25 | % | N/A | N/A | |||||||||||||||||||||
Bank | 366,343 | 12.29 | % | 178,790 | 6.00 | % | 216,038 | 7.25 | % | 238,386 | 8.00 | % | ||||||||||||||||||||
Common equity tier 1 capital1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 329,892 | 11.06 | % | 134,181 | 4.50 | % | 171,454 | 5.75 | % | N/A | N/A | |||||||||||||||||||||
Bank | 366,343 | 12.29 | % | 134,092 | 4.50 | % | 171,340 | 5.75 | % | 193,689 | 6.50 | % | ||||||||||||||||||||
Tier 1 capital1 (to average assets) | ||||||||||||||||||||||||||||||||
Consolidated | 368,355 | 9.92 | % | 148,503 | 4.00 | % | 148,503 | 4.00 | % | N/A | N/A | |||||||||||||||||||||
Bank | 366,343 | 9.89 | % | 148,116 | 4.00 | % | 148,116 | 4.00 | % | 185,145 | 5.00 | % |
Actual | Required for Capital 1 Adequacy Purposes | Required For Capital 1 Adequacy Purposes with Capital Buffer | Well Capitalized Under Prompt 1 Corrective Action Provisions | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||
Total capital 1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | $ | 519,613 | 13.23 | % | $ | 314,113 | 8.00 | % | $ | 412,273 | 10.50 | % | N/A | N/A | ||||||||||||||||||
Bank | 480,366 | 12.23 | % | 314,242 | 8.00 | % | 412,443 | 10.50 | % | $ | 392,802 | 10.00 | % | |||||||||||||||||||
Tier 1 capital 1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 501,272 | 12.77 | % | 235,586 | 6.00 | % | 333,747 | 8.50 | % | N/A | N/A | |||||||||||||||||||||
Bank | 462,025 | 11.76 | % | 235,681 | 6.00 | % | 333,881 | 8.50 | % | 314,241 | 8.00 | % | ||||||||||||||||||||
Common equity tier 1 capital 1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 443,779 | 11.30 | % | 176,689 | 4.50 | % | 274,849 | 7.00 | % | N/A | N/A | |||||||||||||||||||||
Bank | 462,025 | 11.76 | % | 176,761 | 4.50 | % | 274,961 | 7.00 | % | 255,321 | 6.50 | % | ||||||||||||||||||||
Tier 1 capital 1 (to average assets) | ||||||||||||||||||||||||||||||||
Consolidated | 501,272 | 10.33 | % | 194,081 | 4.00 | % | 194,081 | 4.00 | % | N/A | N/A | |||||||||||||||||||||
Bank | 462,025 | 9.52 | % | 194,081 | 4.00 | % | 194,081 | 4.00 | % | 242,602 | 5.00 | % | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Total capital 1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | $ | 427,616 | 13.39 | % | $ | 255,419 | 8.00 | % | $ | 315,283 | 9.875 | % | N/A | N/A | ||||||||||||||||||
Bank | 396,755 | 12.43 | % | 255,419 | 8.00 | % | 315,283 | 9.875 | % | $ | 319,274 | 10.00 | % | |||||||||||||||||||
Tier 1 capital 1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 409,760 | 12.83 | % | 191,565 | 6.00 | % | 251,429 | 7.875 | % | N/A | N/A | |||||||||||||||||||||
Bank | 378,899 | 11.87 | % | 191,565 | 6.00 | % | 251,429 | 7.875 | % | 255,420 | 8.00 | % | ||||||||||||||||||||
Common equity tier 1 capital 1 (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 371,297 | 11.63 | % | 143,673 | 4.50 | % | 203,537 | 6.375 | % | N/A | N/A | |||||||||||||||||||||
Bank | 378,899 | 11.87 | % | 143,674 | 4.50 | % | 203,537 | 6.375 | % | 207,528 | 6.50 | % | ||||||||||||||||||||
Tier 1 capital 1 (to average assets) | ||||||||||||||||||||||||||||||||
Consolidated | 409,760 | 10.12 | % | 162,033 | 4.00 | % | 162,033 | 4.000 | % | N/A | N/A | |||||||||||||||||||||
Bank | 378,899 | 9.34 | % | 162,327 | 4.00 | % | 162,327 | 4.000 | % | 202,908 | 5.00 | % |
Fair Value Measurement
our accounting and disclosures.
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. Early adoption will be permitted beginning after December 15, 2018. We have formedexpect a cross functional committee that is assessing our data and system needs and are evaluating the impact of adopting the new guidance. This committee has developed a timeline associated with the Company’s adoption of this ASU. We expect to recognize a
FASB Accounting Standards UpdatesNo. 2016-02,Leases(Topic 842)
The FASB has issued Accounting Standards Update (ASU)No. 2016-02,Leases. Under the new guidance, lessees willcondition or results of operations cannot yet be required to recognize the following for all leases, with the exception of short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) aright-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. Based on leases outstanding as of December 31, 2017, we do not expect the new standard to have a material impact on our balance sheet or income statement.
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
administration, including the potential for additional changes in tax laws, particularly corporate income tax reform, that may affect current returns, Horizon’s deferred tax assets2018 Economic Growth, Regulatory Relief, and liabilities, the ability to utilize federal and state net operating loss carryforwards, and the market’s perception on overall value;
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
an
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
|
Return on average equity was 12.15%1.39% for the second quarter of 2018 compared2018. (Please refer to 10.24%the section captioned “Use of
Total loans increased by an annualized rate of 6.6%, or $92.4 million, during the first six months of 2018.
Consumer loans increased by an annualized rate of 20.5%, or $46.9 million, during the first six months of 2018.
Residential mortgage loans increased by an annualized rate of 9.3%, or $27.9 million, during the first six months of 2018.
Total deposits increased by an annualized rate of 9.5%, or $135.2 million, during the first six months of 2018.
Net interest income increased $6.4 million, or 23.4%, to $33.6 million for the three months ended June 30, 2018 compared to $27.2 million for the three months ended June 30, 2017. Net interest income increased $14.2 million, or 26.9%, to $67.0 million for the six months ended June 30, 2018 compared to $52.8 million for the six months ended June 30, 2017.
Net interest margin was 3.78% for the three months ended June 30, 2018 compared to 3.84% for the three months ended June 30, 2017. Net interest margin for the six months ended June 30, 2018 and 2017 was 3.81%.
Horizon’s tangible book value per share increased to $8.84$9.91 at June 30, 20182019 compared to $8.48$9.60 and $8.13$8.84 at DecemberMarch 31, 20172019 and June 30, 2017,2018, respectively. This represents the highest tangible book value per share in the Company’s145-year history.
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
its amortized book value. Future changes in management’s assessment of the impairment of these servicing assets, as a result of changes in observable market data relating to market interest rates, loan prepayment speeds, and other factors, could impact Horizon’s financial condition and results of operations either positively or negatively.
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
Financial Condition
$17.1 million due to the acquisition of Salin Bancshares, Inc.
June 30, 2018 | December 31, 2017 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Available for sale | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 24,654 | $ | 24,219 | $ | 19,277 | $ | 19,052 | ||||||||
State and municipal | 136,732 | 134,981 | 148,045 | 149,564 | ||||||||||||
Federal agency collateralized mortgage obligations | 168,382 | 164,134 | 132,871 | 130,365 | ||||||||||||
Federal agency mortgage-backed pools | 203,593 | 196,995 | 211,487 | 208,657 | ||||||||||||
Private labeled mortgage-backed pools | — | — | 1,650 | 1,642 | ||||||||||||
Corporate notes | 5,725 | 5,866 | 272 | 385 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale investment securities | $ | 539,086 | $ | 526,195 | $ | 513,602 | $ | 509,665 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Held to maturity | ||||||||||||||||
State and municipal | $ | 190,079 | $ | 187,380 | $ | 179,836 | $ | 180,397 | ||||||||
Federal agency collateralized mortgage obligations | 5,409 | 5,260 | 5,734 | 5,682 | ||||||||||||
Federal agency mortgage-backed pools | 14,279 | 14,090 | 14,878 | 15,006 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total held to maturity investment securities | $ | 209,767 | $ | 206,730 | $ | 200,448 | $ | 201,085 | ||||||||
|
|
|
|
|
|
|
|
Total loans
June 30, 2019 | December 31, 2018 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Available for sale | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 9,915 | $ | 9,901 | $ | 16,815 | $ | 16,608 | ||||||||
State and municipal | 253,201 | 260,165 | 210,386 | 209,303 | ||||||||||||
Federal agency collateralized mortgage obligations | 229,166 | 231,522 | 187,563 | 185,003 | ||||||||||||
Federal agency mortgage-backed pools | 153,378 | 153,523 | 183,479 | 178,736 | ||||||||||||
Private labeled mortgage-backed pools | — | — | — | — | ||||||||||||
Corporate notes | 17,608 | 18,308 | 10,666 | 10,698 | ||||||||||||
Total available for sale investment securities | $ | 663,268 | $ | 673,419 | $ | 608,909 | $ | 600,348 | ||||||||
Held to maturity | ||||||||||||||||
State and municipal | $ | 195,719 | $ | 201,695 | $ | 191,269 | $ | 189,676 | ||||||||
Federal agency collateralized mortgage obligations | 4,884 | 4,877 | 5,144 | 5,030 | ||||||||||||
Federal agency mortgage-backed pools | 13,165 | 13,319 | 13,699 | 13,567 | ||||||||||||
Total held to maturity investment securities | $ | 213,768 | $ | 219,891 | $ | 210,112 | $ | 208,273 | ||||||||
work within these expanding and robust communities.
Salin.
the sale of the investment portfolio.
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And
For the Three and Six Months ended June 30, 2018 and 2017
Results of Operations
2018.
2018.
2018
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Federal funds sold | $ | 3,367 | $ | 15 | 1.79 | % | $ | 1,728 | $ | 6 | 1.39 | % | ||||||||||||
Interest-earning deposits | 25,946 | 107 | 1.65 | % | 27,677 | 83 | 1.20 | % | ||||||||||||||||
Investment securities - taxable | 416,182 | 2,441 | 2.35 | % | 423,815 | 2,155 | 2.04 | % | ||||||||||||||||
Investment securities -non-taxable(1) | 307,219 | 1,870 | 3.15 | % | 290,494 | 1,766 | 3.40 | % | ||||||||||||||||
Loans receivable(2)(3) | 2,886,087 | 36,308 | 5.08 | % | 2,199,913 | 26,795 | 4.94 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-earning assets(1) | 3,638,801 | 40,741 | 4.57 | % | 2,943,627 | 30,805 | 4.33 | % | ||||||||||||||||
Non-interest-earning assets | ||||||||||||||||||||||||
Cash and due from banks | 44,213 | 42,331 | ||||||||||||||||||||||
Allowance for loan losses | (16,617 | ) | (15,131 | ) | ||||||||||||||||||||
Other assets | 351,154 | 279,024 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total average assets | $ | 4,017,551 | $ | 3,249,851 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 2,403,780 | $ | 3,920 | 0.65 | % | $ | 1,980,025 | $ | 1,721 | 0.35 | % | ||||||||||||
Borrowings | 489,608 | 2,679 | 2.19 | % | 359,462 | 1,338 | 1.49 | % | ||||||||||||||||
Subordinated debentures | 36,525 | 592 | 6.50 | % | 36,340 | 548 | 6.05 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-bearing liabilities | 2,929,913 | 7,191 | 0.98 | % | 2,375,827 | 3,607 | 0.61 | % | ||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | 605,188 | 499,446 | ||||||||||||||||||||||
Accrued interest payable and other liabilities | 16,482 | 19,143 | ||||||||||||||||||||||
Stockholders’ equity | 465,968 | 355,435 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 4,017,551 | $ | 3,249,851 | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net interest income/spread | $ | 33,550 | 3.59 | % | $ | 27,198 | 3.73 | % | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income as a percent of average interest-earning assets(1) | 3.78 | % | 3.84 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Federal funds sold | $ | 18,251 | $ | 120 | 2.64 | % | $ | 3,367 | $ | 15 | 1.79 | % | ||||||||||||
Interest-earning deposits | 18,516 | 83 | 1.80 | % | 25,946 | 107 | 1.65 | % | ||||||||||||||||
Investment securities - taxable | 480,036 | 3,070 | 2.57 | % | 416,182 | 2,441 | 2.35 | % | ||||||||||||||||
Investment securities - non-taxable (1) | 411,944 | 2,793 | 3.44 | % | 307,219 | 1,870 | 3.15 | % | ||||||||||||||||
Loans receivable (2)(3) | 3,637,927 | 47,784 | 5.29 | % | 2,886,087 | 36,308 | 5.08 | % | ||||||||||||||||
Total interest-earning assets (1) | 4,566,674 | 53,850 | 4.81 | % | 3,638,801 | 40,741 | 4.57 | % | ||||||||||||||||
Non-interest-earning assets | ||||||||||||||||||||||||
Cash and due from banks | 67,537 | 44,213 | ||||||||||||||||||||||
Allowance for loan losses | (18,036 | ) | (16,617 | ) | ||||||||||||||||||||
Other assets | 431,190 | 351,154 | ||||||||||||||||||||||
Total average assets | $ | 5,047,365 | $ | 4,017,551 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 3,118,821 | $ | 8,938 | 1.15 | % | $ | 2,403,780 | $ | 3,920 | 0.65 | % | ||||||||||||
Borrowings | 398,320 | 2,495 | 2.51 | % | 489,608 | 2,679 | 2.19 | % | ||||||||||||||||
Subordinated debentures | 53,572 | 888 | 6.65 | % | 36,525 | 592 | 6.50 | % | ||||||||||||||||
Total interest-bearing liabilities | 3,570,713 | 12,321 | 1.38 | % | 2,929,913 | 7,191 | 0.98 | % | ||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | 818,872 | 605,188 | ||||||||||||||||||||||
Accrued interest payable and other liabilities | 35,752 | 16,482 | ||||||||||||||||||||||
Stockholders’ equity | 622,028 | 465,968 | ||||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 5,047,365 | $ | 4,017,551 | ||||||||||||||||||||
Net interest income/spread | $ | 41,529 | 3.43 | % | $ | 33,550 | 3.59 | % | ||||||||||||||||
Net interest income as a percent of average interest-earning assets (1) | 3.73 | % | 3.78 | % |
(1) | Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis. |
(2) | Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate. |
(3) |
|
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
Excluding the interest income recognized from the acquisition-related purchase accounting adjustments (“core net interest margin”), the margin would have been 3.60%3.55% for the three-month
Net interest income during the six months ended June 30, 2018 was $67.0 million, an increase of $14.2 million from the $52.8 million earned during the same period in 2017. Yields on the Company’s interest-earning assets increased by 26 basis points to 4.55% for the six months ending June 30, 2018 from 4.29% for the six months ended June 30, 2017. Interest income increased $20.5 million from $59.6 million for the six months ended June 30, 2017 to $80.2 million3.61% for the same period in 2018. This was due to an increase in average interest-earning assets through organic
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Federal funds sold | $ | 3,560 | $ | 29 | 1.64 | % | $ | 2,377 | $ | 11 | 0.93 | % | ||||||||||||
Interest-earning deposits | 24,749 | 197 | 1.61 | % | 26,220 | 152 | 1.17 | % | ||||||||||||||||
Investment securities - taxable | 409,669 | 4,767 | 2.35 | % | 411,417 | 4,487 | 2.20 | % | ||||||||||||||||
Investment securities -non-taxable(1) | 307,462 | 3,735 | 3.13 | % | 280,563 | 3,403 | 3.40 | % | ||||||||||||||||
Loans receivable(2)(3) | 2,855,236 | 71,439 | 5.05 | % | 2,150,307 | 51,586 | 4.85 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-earning assets(1) | 3,600,676 | 80,167 | 4.55 | % | 2,870,884 | 59,639 | 4.29 | % | ||||||||||||||||
Non-interest-earning assets | ||||||||||||||||||||||||
Cash and due from banks | 43,984 | 41,788 | ||||||||||||||||||||||
Allowance for loan losses | (16,480 | ) | (15,035 | ) | ||||||||||||||||||||
Other assets | 352,684 | 279,497 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total average assets | $ | 3,980,864 | $ | 3,177,134 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 2,354,578 | $ | 6,791 | 0.58 | % | $ | 1,970,235 | $ | 3,474 | 0.36 | % | ||||||||||||
Borrowings | 508,731 | 5,251 | 2.08 | % | 305,116 | 2,275 | 1.50 | % | ||||||||||||||||
Subordinated debentures | 37,695 | 1,164 | 6.23 | % | 36,315 | 1,124 | 6.24 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-bearing liabilities | 2,901,004 | 13,206 | 0.92 | % | 2,311,666 | 6,873 | 0.60 | % | ||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | 600,214 | 495,262 | ||||||||||||||||||||||
Accrued interest payable and other liabilities | 16,490 | 19,901 | ||||||||||||||||||||||
Stockholders’ equity | 463,156 | 350,305 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 3,980,864 | $ | 3,177,134 | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net interest income/spread | $ | 66,961 | 3.64 | % | $ | 52,766 | 3.69 | % | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income as a percent of average | 3.81 | % | 3.81 | % |
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Federal funds sold | $ | 13,072 | $ | 224 | 3.46 | % | $ | 3,560 | $ | 29 | 1.64 | % | ||||||||||||
Interest-earning deposits | 22,414 | 191 | 1.72 | % | 24,749 | 197 | 1.61 | % | ||||||||||||||||
Investment securities - taxable | 464,544 | 5,980 | 2.60 | % | 409,669 | 4,767 | 2.35 | % | ||||||||||||||||
Investment securities - non-taxable (1) | 402,883 | 5,421 | 3.43 | % | 307,462 | 3,735 | 3.13 | % | ||||||||||||||||
Loans receivable (2)(3) | 3,346,731 | 87,407 | 5.28 | % | 2,855,236 | 71,439 | 5.05 | % | ||||||||||||||||
Total interest-earning assets (1) | 4,249,644 | 99,223 | 4.79 | % | 3,600,676 | 80,167 | 4.55 | % | ||||||||||||||||
Non-interest-earning assets | ||||||||||||||||||||||||
Cash and due from banks | 56,160 | 43,984 | ||||||||||||||||||||||
Allowance for loan losses | (17,939 | ) | (16,480 | ) | ||||||||||||||||||||
Other assets | 391,558 | 352,684 | ||||||||||||||||||||||
Total average assets | $ | 4,679,423 | $ | 3,980,864 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 2,818,496 | $ | 15,814 | 1.13 | % | $ | 2,354,578 | $ | 6,791 | 0.58 | % | ||||||||||||
Borrowings | 487,266 | 6,116 | 2.53 | % | 508,731 | 5,251 | 2.08 | % | ||||||||||||||||
Subordinated debentures | 45,735 | 1,484 | 6.54 | % | 37,695 | 1,164 | 6.23 | % | ||||||||||||||||
Total interest-bearing liabilities | 3,351,497 | 23,414 | 1.41 | % | 2,901,004 | 13,206 | 0.92 | % | ||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | 731,556 | 600,214 | ||||||||||||||||||||||
Accrued interest payable and other liabilities | 32,508 | 16,490 | ||||||||||||||||||||||
Stockholders’ equity | 563,862 | 463,156 | ||||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 4,679,423 | $ | 3,980,864 | ||||||||||||||||||||
Net interest income/spread | $ | 75,809 | 3.38 | % | $ | 66,961 | 3.64 | % | ||||||||||||||||
Net interest income as a percent of average interest-earning assets (1) | 3.68 | % | 3.81 | % |
(1) | Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis. |
(2) | Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate. |
(3) |
|
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
Rates paid on interest-bearing liabilities increased by 32 basis points for thesix-month period ended June 30, 2018 compared to the same period in 2017 due to increases in the cost of interest-bearing deposits and borrowings. Interest expense increased $6.3 million compared to thesix-month period ended June 30, 2017 to $13.2 million for the same period in 2018. This increase was due to higher average balances of interest-bearing deposits and borrowings in addition to the higher rates paid on both. Average balances of interest-bearing deposits increased $384.3 million and were due to the acquisitions of Lafayette and Wolverine during the third and fourth quarters of 2017, as well as organic growth during the first six months of 2018.
The net interest margin remained at 3.81% for thesix-month periods ended June 30, 2018 and 2017, respectively. The increase in the cost of interest-bearing liabilities and the impact of the lower income tax rate onnon-taxable interest-earning assets was offset by an increase in the yield of taxable interest-earning assets when comparing thesix-month periods ended June 30, 2017 and 2018. Excluding the interest income recognized from the acquisition-related purchase accounting adjustments, the margin would have been 3.61% for thesix-month period ending June 30, 2018 compared to 3.67% for the same period in 2017.
experienced from June 30, 2018 to June 30, 2019.
2019.
2019
Pre-discount Loan Balance | Allowance for Loan Losses (ALLL) | Loan Discount | ALLL + Loan Discount | Loans, net | ALLL/ Pre-discount Loan Balance | Loan Discount/ Pre-discount Loan Balance | ALLL+Loan Discount/ Pre-discount Loan Balance | |||||||||||||||||||||||||
Horizon Legacy | $ | 2,280,089 | $ | 17,071 | N/A | $ | 17,071 | $ | 2,263,018 | 0.75 | % | 0.00 | % | 0.75 | % | |||||||||||||||||
Heartland | 10,290 | — | 725 | 725 | 9,565 | 0.00 | % | 7.05 | % | 7.05 | % | |||||||||||||||||||||
Summit | 31,357 | — | 1,858 | 1,858 | 29,499 | 0.00 | % | 5.93 | % | 5.93 | % | |||||||||||||||||||||
Peoples | 99,586 | — | 2,259 | 2,259 | 97,327 | 0.00 | % | 2.27 | % | 2.27 | % | |||||||||||||||||||||
Kosciusko | 46,070 | — | 700 | 700 | 45,370 | 0.00 | % | 1.52 | % | 1.52 | % | |||||||||||||||||||||
LaPorte | 108,429 | — | 3,283 | 3,283 | 105,146 | 0.00 | % | 3.03 | % | 3.03 | % | |||||||||||||||||||||
CNB | 5,293 | — | 144 | 144 | 5,149 | 0.00 | % | 2.72 | % | 2.72 | % | |||||||||||||||||||||
Lafayette | 112,352 | — | 2,036 | 2,036 | 110,316 | 0.00 | % | 1.81 | % | 1.81 | % | |||||||||||||||||||||
Wolverine | 234,050 | — | 3,447 | 3,447 | 230,603 | 0.00 | % | 1.47 | % | 1.47 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total | $ | 2,927,516 | $ | 17,071 | $ | 14,452 | $ | 31,523 | $ | 2,895,993 | 0.58 | % | 0.49 | % | 1.08 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Pre-discount Loan Balance | Allowance for Loan Losses (ALLL) | Loan Discount | ALLL + Loan Discount | Loans, net | ALLL/ Pre-discount Loan Balance | Loan Discount/ Pre-discount Loan Balance | ALLL+Loan Discount/ Pre-discount Loan Balance | |||||||||||||||||||||||||
Horizon Legacy | $ | 2,677,923 | $ | 18,091 | N/A | $ | 18,091 | $ | 2,659,832 | 0.68 | % | 0.00 | % | 0.68 | % | |||||||||||||||||
Heartland | 6,044 | — | 621 | 621 | 5,423 | 0.00 | % | 10.27 | % | 10.27 | % | |||||||||||||||||||||
Summit | 17,194 | — | 1,003 | 1,003 | 16,191 | 0.00 | % | 5.83 | % | 5.83 | % | |||||||||||||||||||||
Peoples | 75,918 | — | 1,732 | 1,732 | 74,186 | 0.00 | % | 2.28 | % | 2.28 | % | |||||||||||||||||||||
Kosciusko | 34,056 | 195 | 567 | 762 | 33,294 | 0.57 | % | 1.66 | % | 2.24 | % | |||||||||||||||||||||
LaPorte | 73,228 | — | 2,651 | 2,651 | 70,577 | 0.00 | % | 3.62 | % | 3.62 | % | |||||||||||||||||||||
CNB | 3,701 | — | 94 | 94 | 3,607 | 0.00 | % | 2.54 | % | 2.54 | % | |||||||||||||||||||||
Lafayette | 71,707 | 19 | 652 | 671 | 71,036 | 0.03 | % | 0.91 | % | 0.94 | % | |||||||||||||||||||||
Wolverine | 161,066 | — | 2,120 | 2,120 | 158,946 | 0.00 | % | 1.32 | % | 1.32 | % | |||||||||||||||||||||
Salin | 547,016 | — | 14,230 | 14,230 | 532,786 | 0.00 | % | 2.60 | % | 2.60 | % | |||||||||||||||||||||
Total | $ | 3,667,853 | $ | 18,305 | $ | 23,670 | $ | 41,975 | $ | 3,625,878 | 0.50 | % | 0.65 | % | 1.14 | % | ||||||||||||||||
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
2019.
Three and Six Months ended June 30, 2019 and 2018
Three Months Ended | ||||||||||||||||
Non-interest Income | June 30 2018 | June 30 2017 | Amount Change | Percent Change | ||||||||||||
Service charges on deposit accounts | $ | 1,907 | $ | 1,566 | $ | 341 | 21.8 | % | ||||||||
Wire transfer fees | 180 | 178 | 2 | 1.1 | % | |||||||||||
Interchange fees | 1,555 | 1,382 | 173 | 12.5 | % | |||||||||||
Fiduciary activities | 1,818 | 1,943 | (125 | ) | -6.4 | % | ||||||||||
Gain on sale of investment securities | — | (3 | ) | 3 | -100.0 | % | ||||||||||
Gain on sale of mortgage loans | 1,896 | 2,054 | (158 | ) | -7.7 | % | ||||||||||
Mortgage servicing net of impairment | 511 | 359 | 152 | 42.3 | % | |||||||||||
Increase in cash surrender value of bank owned life insurance | 442 | 408 | 34 | 8.3 | % | |||||||||||
Death benefit on bank owned life insurance | 154 | — | 154 | 0.0 | % | |||||||||||
Other income | 469 | 325 | 144 | 44.3 | % | |||||||||||
|
|
|
|
|
| |||||||||||
Totalnon-interest income | $ | 8,932 | $ | 8,212 | $ | 720 | 8.8 | % | ||||||||
|
|
|
|
|
|
Three Months Ended | ||||||||||||||||
June 30 2019 | June 30 2018 | Amount Change | Percent Change | |||||||||||||
Non-interest Income | ||||||||||||||||
Service charges on deposit accounts | $ | 2,480 | $ | 1,907 | $ | 573 | 30.0 | % | ||||||||
Wire transfer fees | 167 | 180 | (13 | ) | -7.2 | % | ||||||||||
Interchange fees | 2,160 | 1,555 | 605 | 38.9 | % | |||||||||||
Fiduciary activities | 2,063 | 1,818 | 245 | 13.5 | % | |||||||||||
Gain on sale of investment securities | (100 | ) | — | (100 | ) | 0.0 | % | |||||||||
Gain on sale of mortgage loans | 2,078 | 1,896 | 182 | 9.6 | % | |||||||||||
Mortgage servicing net of impairment | 570 | 511 | 59 | 11.5 | % | |||||||||||
Increase in cash surrender value of bank owned life insurance | 555 | 442 | 113 | 25.6 | % | |||||||||||
Death benefit on bank owned life insurance | 367 | 154 | 213 | 138.3 | % | |||||||||||
Other income | 558 | 469 | 89 | 19.0 | % | |||||||||||
Total non-interest income | $ | 10,898 | $ | 8,932 | $ | 1,966 | 22.0 | % | ||||||||
Six Months Ended | ||||||||||||||||
June 30 2019 | June 30 2018 | Amount Change | Percent Change | |||||||||||||
Non-interest Income | ||||||||||||||||
Service charges on deposit accounts | $ | 4,357 | $ | 3,795 | $ | 562 | 14.8 | % | ||||||||
Wire transfer fees | 285 | 330 | (45 | ) | -13.6 | % | ||||||||||
Interchange fees | 3,521 | 2,883 | 638 | 22.1 | % | |||||||||||
Fiduciary activities | 4,152 | 3,743 | 409 | 10.9 | % | |||||||||||
Gain on sale of investment securities | (85 | ) | 11 | (96 | ) | -872.7 | % | |||||||||
Gain on sale of mortgage loans | 3,387 | 3,319 | 68 | 2.0 | % | |||||||||||
Mortgage servicing net of impairment | 1,176 | 860 | 316 | 36.7 | % | |||||||||||
Increase in cash surrender value of bank owned life insurance | 1,068 | 877 | 191 | 21.8 | % | |||||||||||
Death benefit on bank owned life insurance | 367 | 154 | 213 | 138.3 | % | |||||||||||
Other income | 1,382 | 1,278 | 104 | 8.1 | % | |||||||||||
Total non-interest income | $ | 19,610 | $ | 17,250 | $ | 2,360 | 13.7 | % | ||||||||
The following is a summary of changes in2018
Six Months Ended | ||||||||||||||||
Non-interest Income | June 30 2018 | June 30 2017 | Amount Change | Percent Change | ||||||||||||
Service charges on deposit accounts | $ | 3,795 | $ | 2,966 | $ | 829 | 28.0 | % | ||||||||
Wire transfer fees | 330 | 328 | 2 | 0.6 | % | |||||||||||
Interchange fees | 2,883 | 2,558 | 325 | 12.7 | % | |||||||||||
Fiduciary activities | 3,743 | 3,865 | (122 | ) | -3.2 | % | ||||||||||
Gain on sale of investment securities | 11 | 32 | (21 | ) | -65.6 | % | ||||||||||
Gain on sale of mortgage loans | 3,319 | 3,968 | (649 | ) | -16.4 | % | ||||||||||
Mortgage servicing net of impairment | 860 | 806 | 54 | 6.7 | % | |||||||||||
Increase in cash surrender value of bank | 877 | 872 | 5 | 0.6 | % | |||||||||||
Death benefit on bank owned life insurance | 154 | — | 154 | 0.0 | % | |||||||||||
Other income | 1,278 | 376 | 902 | 239.9 | % | |||||||||||
|
|
|
|
|
| |||||||||||
Totalnon-interest income | $ | 17,250 | $ | 15,771 | $ | 1,479 | 9.4 | % | ||||||||
|
|
|
|
|
|
Totalnon-interest
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30 | June 30 | |||||||||||||||||||||||||||||||
2019 | 2018 | Adjusted | ||||||||||||||||||||||||||||||
Actual | Merger Expenses | Adjusted | Actual | Merger Expenses | Adjusted | Amount Change | Percent Change | |||||||||||||||||||||||||
Non-interest Expense | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 16,951 | $ | (482 | ) | $ | 16,469 | $ | 13,809 | $ | — | $ | 13,809 | $ | 2,660 | 19.3 | % | |||||||||||||||
Net occupancy expenses | 3,148 | (75 | ) | 3,073 | 2,520 | — | 2,520 | 553 | 21.9 | % | ||||||||||||||||||||||
Data processing | 2,139 | (68 | ) | 2,071 | 1,607 | — | 1,607 | 464 | 28.9 | % | ||||||||||||||||||||||
Professional fees | 598 | (153 | ) | 445 | 376 | — | 376 | 69 | 18.4 | % | ||||||||||||||||||||||
Outside services and consultants | 1,655 | (176 | ) | 1,479 | 1,267 | — | 1,267 | 212 | 16.7 | % | ||||||||||||||||||||||
Loan expense | 2,048 | (2 | ) | 2,046 | 1,525 | — | 1,525 | 521 | 34.2 | % | ||||||||||||||||||||||
FDIC deposit insurance | 365 | — | 365 | 345 | — | 345 | 20 | 5.8 | % | |||||||||||||||||||||||
Other losses | 169 | (69 | ) | 100 | 269 | — | 269 | (169 | ) | -62.8 | % | |||||||||||||||||||||
Other expenses | 4,511 | (507 | ) | 4,004 | 3,224 | — | 3,224 | 780 | 24.2 | % | ||||||||||||||||||||||
Total non-interest expense | $ | 31,584 | $ | (1,532 | ) | $ | 30,052 | $ | 24,942 | $ | — | $ | 24,942 | $ | 5,110 | 20.5 | % | |||||||||||||||
Annualized Non-interest Exp. to Avg. Assets | 2.51 | % | 2.39 | % | 2.49 | % | 2.49 | % |
Six Months Ended | ||||||||||||||||||||||||||||||||
June 30 | June 30 | Adjusted | ||||||||||||||||||||||||||||||
2019 | 2018 | Amount Change | Percent Change | |||||||||||||||||||||||||||||
Actual | Merger Expenses | Adjusted | Actual | Merger Expenses | Adjusted | |||||||||||||||||||||||||||
Non-interest Expense | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 31,417 | $ | (484 | ) | $ | 30,933 | $ | 28,182 | $ | — | $ | 28,182 | $ | 2,751 | 9.8 | % | |||||||||||||||
Net occupancy expenses | 5,920 | (75 | ) | 5,845 | 5,486 | — | 5,486 | 359 | 6.5 | % | ||||||||||||||||||||||
Data processing | 4,105 | (360 | ) | 3,745 | 3,303 | — | 3,303 | 442 | 13.4 | % | ||||||||||||||||||||||
Professional fees | 1,091 | (392 | ) | 699 | 877 | — | 877 | (178 | ) | -20.3 | % | |||||||||||||||||||||
Outside services and consultants | 5,185 | (2,466 | ) | 2,719 | 2,531 | — | 2,531 | 188 | 7.4 | % | ||||||||||||||||||||||
Loan expense | 3,997 | (2 | ) | 3,995 | 2,782 | — | 2,782 | 1,213 | 43.6 | % | ||||||||||||||||||||||
FDIC deposit insurance | 525 | — | 525 | 655 | — | 655 | (130 | ) | -19.8 | % | ||||||||||||||||||||||
Other losses | 273 | (71 | ) | 202 | 415 | — | 415 | (213 | ) | -51.3 | % | |||||||||||||||||||||
Other expenses | 8,809 | (1,800 | ) | 7,009 | 6,548 | — | 6,548 | 461 | 7.0 | % | ||||||||||||||||||||||
Total non-interest expense | $ | 61,322 | $ | (5,650 | ) | $ | 55,672 | $ | 50,779 | $ | — | $ | 50,779 | $ | 4,893 | 9.6 | % | |||||||||||||||
Annualized Non-interest Exp. to Avg. Assets | 2.64 | % | 2.40 | % | 2.57 | % | 2.57 | % |
Non-interest Expense
The following is a summary of changes innon-interest 2018 as the Company has been able to leverage its expense (table dollar amounts in thousands):
Three Months Ended | ||||||||||||||||
Non-interest Expense | June 30 2018 | June 30 2017 | Amount Change | Percent Change | ||||||||||||
Salaries | $ | 10,043 | $ | 9,116 | $ | 927 | 10.2 | % | ||||||||
Commission and bonuses | 1,509 | 1,389 | 120 | 8.6 | % | |||||||||||
Employee benefits | 2,257 | 1,961 | 296 | 15.1 | % | |||||||||||
Net occupancy expenses | 2,520 | 2,196 | 324 | 14.8 | % | |||||||||||
Data processing | 1,607 | 1,502 | 105 | 7.0 | % | |||||||||||
Professional fees | 376 | 535 | (159 | ) | -29.7 | % | ||||||||||
Outside services and consultants | 1,267 | 1,265 | 2 | 0.2 | % | |||||||||||
Loan expense | 1,525 | 1,250 | 275 | 22.0 | % | |||||||||||
FDIC deposit insurance | 345 | 243 | 102 | 42.0 | % | |||||||||||
Other losses | 269 | 78 | 191 | 244.9 | % | |||||||||||
Other expenses | 3,224 | 2,953 | 271 | 9.2 | % | |||||||||||
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| |||||||||||
Totalnon-interest expense | $ | 24,942 | $ | 22,488 | $ | 2,454 | 10.9 | % | ||||||||
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|
Totalnon-interestbase.
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
2017. Loan expense increased due to a higher level of loan originations and loan collection expenses when compared to the second quarter of 2017. Other losses increased primarily due to write-downs on other bank owned properties and an accrual for a potential loss on a fiduciary account recorded during the second quarter of 2018.
The following is a summary of changes innon-interest
Six Months Ended | ||||||||||||||||
Non-interest Expense | June 30 2018 | June 30 2017 | Amount Change | Percent Change | ||||||||||||
Salaries | $ | 20,117 | $ | 17,622 | $ | 2,495 | 14.2 | % | ||||||||
Commission and bonuses | 2,856 | 2,450 | 406 | 16.6 | % | |||||||||||
Employee benefits | 5,209 | 4,103 | 1,106 | 27.0 | % | |||||||||||
Net occupancy expenses | 5,486 | 4,648 | 838 | 18.0 | % | |||||||||||
Data processing | 3,303 | 2,809 | 494 | 17.6 | % | |||||||||||
Professional fees | 877 | 1,148 | (271 | ) | -23.6 | % | ||||||||||
Outside services and consultants | 2,531 | 2,487 | 44 | 1.8 | % | |||||||||||
Loan expense | 2,782 | 2,357 | 425 | 18.0 | % | |||||||||||
FDIC deposit insurance | 655 | 506 | 149 | 29.4 | % | |||||||||||
Other losses | 415 | 128 | 287 | 224.2 | % | |||||||||||
Other expenses | 6,548 | 5,751 | 797 | 13.9 | % | |||||||||||
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| |||||||||||
Totalnon-interest expense | $ | 50,779 | $ | 44,009 | $ | 6,770 | 15.4 | % | ||||||||
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|
Totalnon-interest expense was $6.8totaled $5.4 million higher for the first six months ended June 30, 2018 when compared to the six months ended June 30, 2017. Theof 2019, an increase was primarily due to increases in salaries and employee benefits of $4.0 million, net occupancy expenses of $838,000, other expense of $797,000, data processing of $494,000 and loan expense of $425,000. The increase in salaries and employee benefits, net occupancy expense, other expense and data processing expense reflect overall company growth and recent acquisitions. Loan expense increased due to a higher level of loan originations and collection expenses during the six months ended June 30, 2018$68,000 when compared to the same period of 2017. Offsetting these increasesin 2018. The increase was a decrease of $271,000 in professional fees primarily due to a lack of acquisition-related expenses in 2018.
Income Taxes
Income tax expense totaled $2.8 million for the second quarter of 2018, a decrease of $730,000 when compared to the second quarter of 2017. The decrease was primarily due to the impact of the new corporate tax rate which was signed into law at the end of 2017 reducing the effective federal tax rate from 35% to 21% and the benefits from the exercising of stock options. This decrease was offset by an increase in income before income taxestax of $4.3 million when comparing the second quarter of 2018 to the same period of 2017.
Income tax expense totaled $5.3 million for the six months ended June 30, 2018, a decrease of $1.3 million$607,000 when compared to the six months ended June 30, 2017. The decrease was primarily due to the impact of the new corporate tax rate which was signed into law at the end of 2017 reducing the effective federal tax rate from 35% to 21% and the benefits from the exercising of stock options. This decrease was offset by an increase in income before income taxes of $8.4 million when comparing the first six months of 2018 to the same period of 2017.
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Six Months ended June 30, 2018 and 2017
2018.
2018
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Non-GAAP Reconciliation of Net Interest Margin | ||||||||||||||||||||
Net interest income as reported | $ | 33,550 | $ | 33,411 | $ | 27,198 | $ | 66,961 | $ | 52,766 | ||||||||||
Average interest-earning assets | 3,638,801 | 3,580,143 | 2,943,627 | 3,600,676 | 2,870,884 | |||||||||||||||
Net interest income as a percentage of average interest-earning assets (“Net Interest Margin”) | 3.78 | % | 3.81 | % | 3.84 | % | 3.81 | % | 3.81 | % | ||||||||||
Acquisition-related purchase accounting adjustments (“PAUs”) | $ | (1,634 | ) | $ | (2,037 | ) | $ | (939 | ) | (3,671 | ) | (1,955 | ) | |||||||
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| |||||||||||
Core net interest income | $ | 31,916 | $ | 31,374 | $ | 26,259 | 63,290 | 50,811 | ||||||||||||
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| |||||||||||
Core net interest margin | 3.60 | % | 3.55 | % | 3.71 | % | 3.61 | % | 3.67 | % | ||||||||||
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Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Non-GAAP Reconciliation of Net Interest Margin | ||||||||||||||||||||
Net interest income as reported | $ | 41,529 | $ | 34,280 | $ | 33,550 | $ | 75,809 | $ | 66,961 | ||||||||||
Average interest-earning assets | 4,566,674 | 3,929,296 | 3,638,801 | 4,249,644 | 3,600,676 | |||||||||||||||
Net interest income as a percentage of average interest-earning assets (“Net Interest Margin”) | 3.73 | % | 3.62 | % | 3.78 | % | 3.68 | % | 3.81 | % | ||||||||||
Acquisition-related purchase accounting adjustments (“PAUs”) | $ | (1,299 | ) | $ | (1,510 | ) | $ | (1,634 | ) | $ | (2,809 | ) | $ | (3,671 | ) | |||||
Core net interest income | $ | 40,230 | $ | 32,770 | $ | 31,916 | $ | 73,000 | $ | 63,290 | ||||||||||
Core net interest margin | 3.61 | % | 3.46 | % | 3.60 | % | 3.55 | % | 3.61 | % | ||||||||||
2018
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Non-GAAP Reconciliation of Net Income | ||||||||||||||||||||
Net income as reported | $ | 14,115 | $ | 12,804 | $ | 9,072 | $ | 26,919 | $ | 17,296 | ||||||||||
Merger expenses | — | — | 200 | — | 200 | |||||||||||||||
Tax effect | — | — | (70 | ) | — | (70 | ) | |||||||||||||
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Net income excluding merger expenses | 14,115 | 12,804 | 9,202 | 26,919 | 17,426 | |||||||||||||||
Gain on sale of investment securities | — | (11 | ) | 3 | (11 | ) | (32 | ) | ||||||||||||
Tax effect | — | 2 | (1 | ) | 2 | 11 | ||||||||||||||
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Net income excluding gain on sale of investment securities | 14,115 | 12,795 | 9,204 | 26,910 | 17,405 | |||||||||||||||
Death benefit on bank owned life insurance (“BOLI”) | (154 | ) | — | — | (154 | ) | — | |||||||||||||
Tax effect | 32 | — | — | 32 | — | |||||||||||||||
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Net income excluding death benefit on BOLI | 13,993 | 12,795 | 9,204 | 26,788 | 17,405 | |||||||||||||||
Acquisition-related purchase accounting adjustments (“PAUs”) | (1,634 | ) | (2,037 | ) | (939 | ) | (3,671 | ) | (1,955 | ) | ||||||||||
Tax effect | 343 | 428 | 329 | 771 | 684 | |||||||||||||||
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Core Net Income | $ | 12,702 | $ | 11,186 | $ | 8,594 | $ | 23,888 | $ | 16,134 | ||||||||||
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Non-GAAP Reconciliation of Diluted Earnings per Share | ||||||||||||||||||||
Diluted earnings per share (“EPS”) as reported | $ | 0.37 | $ | 0.33 | $ | 0.27 | $ | 0.70 | $ | 0.51 | ||||||||||
Merger expenses | — | — | 0.01 | — | 0.01 | |||||||||||||||
Tax effect | — | — | — | — | — | |||||||||||||||
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Diluted EPS excluding merger expenses | 0.37 | 0.33 | 0.28 | 0.70 | 0.52 | |||||||||||||||
Gain on sale of investment securities | — | — | — | — | — | |||||||||||||||
Tax effect | — | — | — | — | — | |||||||||||||||
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Diluted EPS excluding gain on sale of investment securities | 0.37 | 0.33 | 0.28 | 0.70 | 0.52 | |||||||||||||||
Death benefit on BOLI | — | — | — | — | — | |||||||||||||||
Tax effect | — | — | — | — | — | |||||||||||||||
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Diluted EPS excluding death benefit on BOLI | 0.37 | 0.33 | 0.28 | 0.70 | 0.52 | |||||||||||||||
Acquisition-related PAUs | (0.04 | ) | (0.05 | ) | (0.03 | ) | (0.10 | ) | (0.06 | ) | ||||||||||
Tax effect | — | 0.01 | 0.01 | 0.02 | 0.01 | |||||||||||||||
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Core Diluted EPS | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.62 | $ | 0.47 | ||||||||||
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Non-GAAP Reconciliation
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Non-GAAP Reconciliation of Net Income | ||||||||||||||||||||
Net income as reported | $ | 16,642 | $ | 10,816 | $ | 14,115 | $ | 27,458 | $ | 26,919 | ||||||||||
Merger expenses | 1,532 | 4,118 | — | 5,650 | — | |||||||||||||||
Tax effect | (295 | ) | (692 | ) | — | (987 | ) | — | ||||||||||||
Net income excluding merger expenses | 17,879 | 14,242 | 14,115 | 32,121 | 26,919 | |||||||||||||||
Loss (gain) on sale of investment securities | 100 | (15 | ) | — | 85 | (11 | ) | |||||||||||||
Tax effect | (21 | ) | 3 | — | (18 | ) | 2 | |||||||||||||
Net income excluding gain on sale of investment securities | 17,958 | 14,230 | 14,115 | 32,188 | 26,910 | |||||||||||||||
Death benefit on bank owned life insurance (“BOLI”) | (367 | ) | — | (154 | ) | (367 | ) | (154 | ) | |||||||||||
Net income excluding death benefit on BOLI | 17,591 | 14,230 | 13,961 | 31,821 | 26,756 | |||||||||||||||
Core Net Income | $ | 17,591 | $ | 14,230 | $ | 13,961 | $ | 31,821 | $ | 26,756 | ||||||||||
Non-GAAP Reconciliation of Diluted Earnings per Share | ||||||||||||||||||||
Diluted earnings per share (“EPS”) as reported | $ | 0.37 | $ | 0.28 | $ | 0.37 | $ | 0.65 | $ | 0.70 | ||||||||||
Merger expenses | 0.03 | 0.11 | — | 0.13 | — | |||||||||||||||
Tax effect | — | (0.02 | ) | — | (0.02 | ) | — | |||||||||||||
Diluted EPS excluding merger expenses | 0.40 | 0.37 | 0.37 | 0.76 | 0.70 | |||||||||||||||
Loss (gain) on sale of investment securities | — | — | — | — | — | |||||||||||||||
Tax effect | — | — | — | — | — | |||||||||||||||
Diluted EPS excluding gain on sale of investment securities | 0.40 | 0.37 | 0.37 | 0.76 | 0.70 | |||||||||||||||
Death benefit on BOLI | (0.01 | ) | — | — | (0.01 | ) | — | |||||||||||||
Diluted EPS excluding death benefit on BOLI | 0.39 | 0.37 | 0.37 | 0.75 | 0.70 | |||||||||||||||
Core Diluted EPS | $ | 0.39 | $ | 0.37 | $ | 0.37 | $ | 0.75 | $ | 0.70 | ||||||||||
2018
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Non-GAAP Reconciliation of Return on Average Assets | ||||||||||||||||||||
Average assets | $ | 4,017,551 | $ | 3,942,837 | $ | 3,249,851 | $ | 3,980,864 | $ | 3,177,134 | ||||||||||
Return on average assets (“ROAA”) as reported | 1.41 | % | 1.32 | % | 1.12 | % | 1.36 | % | 1.10 | % | ||||||||||
Merger expenses | 0.00 | % | 0.00 | % | 0.02 | % | 0.00 | % | 0.01 | % | ||||||||||
Tax effect | 0.00 | % | 0.00 | % | -0.01 | % | 0.00 | % | 0.00 | % | ||||||||||
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ROAA excluding merger expenses | 1.41 | % | 1.32 | % | 1.13 | % | 1.36 | % | 1.11 | % | ||||||||||
Gain on sale of investment securities | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Tax effect | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
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ROAA excluding gain on sale of investment securities | 1.41 | % | 1.32 | % | 1.13 | % | 1.36 | % | 1.11 | % | ||||||||||
Death benefit on bank owned life insurance (“BOLI”) | -0.02 | % | 0.00 | % | 0.00 | % | -0.01 | % | 0.00 | % | ||||||||||
Tax effect | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
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ROAA excluding death benefit on BOLI | 1.39 | % | 1.32 | % | 1.13 | % | 1.35 | % | 1.11 | % | ||||||||||
Acquisition-related purchase accounting adjustments (“PAUs”) | -0.16 | % | -0.21 | % | -0.12 | % | -0.19 | % | -0.12 | % | ||||||||||
Tax effect | 0.03 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | ||||||||||
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Core ROAA | 1.26 | % | 1.15 | % | 1.05 | % | 1.20 | % | 1.03 | % | ||||||||||
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Non-GAAP Reconciliation of Return on Average Common Equity | ||||||||||||||||||||
Average Common Equity | $ | 465,968 | $ | 460,076 | $ | 355,435 | $ | 463,156 | $ | 350,305 | ||||||||||
Return on average common equity (“ROACE”) as reported | 12.15 | % | 11.29 | % | 10.24 | % | 11.72 | % | 9.96 | % | ||||||||||
Merger expenses | 0.00 | % | 0.00 | % | 0.23 | % | 0.00 | % | 0.12 | % | ||||||||||
Tax effect | 0.00 | % | 0.00 | % | -0.08 | % | 0.00 | % | -0.04 | % | ||||||||||
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ROACE excluding merger expenses | 12.15 | % | 11.29 | % | 10.39 | % | 11.72 | % | 10.04 | % | ||||||||||
Gain on sale of investment securities | 0.00 | % | -0.01 | % | 0.00 | % | 0.00 | % | -0.02 | % | ||||||||||
Tax effect | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | % | ||||||||||
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ROACE excluding gain on sale of investment securities | 12.15 | % | 11.28 | % | 10.39 | % | 11.72 | % | 10.03 | % | ||||||||||
Death benefit on bank owned life insurance (“BOLI”) | -0.13 | % | 0.00 | % | 0.00 | % | -0.07 | % | 0.00 | % | ||||||||||
Tax effect | 0.03 | % | 0.00 | % | 0.00 | % | 0.01 | % | 0.00 | % | ||||||||||
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ROACE excluding death benefit on BOLI | 12.05 | % | 11.28 | % | 10.39 | % | 11.66 | % | 10.03 | % | ||||||||||
Acquisition-related purchase accounting adjustments (“PAUs”) | -1.41 | % | -1.80 | % | -1.06 | % | -1.60 | % | -1.13 | % | ||||||||||
Tax effect | 0.30 | % | 0.38 | % | 0.37 | % | 0.34 | % | 0.39 | % | ||||||||||
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Core ROACE | 10.94 | % | 9.86 | % | 9.70 | % | 10.40 | % | 9.29 | % | ||||||||||
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Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Non-GAAP Reconciliation of Return on Average Assets | ||||||||||||||||||||
Average assets | $ | 5,047,365 | $ | 4,307,189 | $ | 4,017,551 | $ | 4,679,423 | $ | 3,980,864 | ||||||||||
Return on average assets (“ROAA”) as reported | 1.32 | % | 1.02 | % | 1.41 | % | 1.18 | % | 1.36 | % | ||||||||||
Merger expenses | 0.12 | % | 0.39 | % | 0.00 | % | 0.24 | % | 0.00 | % | ||||||||||
Tax effect | -0.02 | % | -0.07 | % | 0.00 | % | -0.04 | % | 0.00 | % | ||||||||||
ROAA excluding merger expenses | 1.42 | % | 1.34 | % | 1.41 | % | 1.38 | % | 1.36 | % | ||||||||||
Loss (gain) on sale of investment securities | 0.01 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Tax effect | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
ROAA excluding gain on sale of investment securities | 1.43 | % | 1.34 | % | 1.41 | % | 1.38 | % | 1.36 | % | ||||||||||
Death benefit on bank owned life insurance (“BOLI”) | -0.03 | % | 0.00 | % | -0.02 | % | -0.02 | % | -0.01 | % | ||||||||||
ROAA excluding death benefit on BOLI | 1.40 | % | 1.34 | % | 1.39 | % | 1.36 | % | 1.35 | % | ||||||||||
Core ROAA | 1.40 | % | 1.34 | % | 1.39 | % | 1.36 | % | 1.35 | % | ||||||||||
Non-GAAP Reconciliation of Return on Average Common Equity | ||||||||||||||||||||
Average Common Equity | $ | 622,028 | $ | 506,449 | $ | 465,968 | $ | 563,862 | $ | 463,156 | ||||||||||
Return on average common equity (“ROACE”) as reported | 10.73 | % | 8.66 | % | 12.15 | % | 9.82 | % | 11.72 | % | ||||||||||
Merger expenses | 0.99 | % | 3.30 | % | 0.00 | % | 2.02 | % | 0.00 | % | ||||||||||
Tax effect | -0.19 | % | -0.55 | % | 0.00 | % | -0.35 | % | 0.00 | % | ||||||||||
ROACE excluding merger expenses | 11.53 | % | 11.41 | % | 12.15 | % | 11.49 | % | 11.72 | % | ||||||||||
Loss (gain) on sale of investment securities | 0.06 | % | -0.01 | % | 0.00 | % | 0.03 | % | 0.00 | % | ||||||||||
Tax effect | -0.01 | % | 0.00 | % | 0.00 | % | -0.01 | % | 0.00 | % | ||||||||||
ROACE excluding gain on sale of investment securities | 11.58 | % | 11.40 | % | 12.15 | % | 11.51 | % | 11.72 | % | ||||||||||
Death benefit on bank owned life insurance (“BOLI”) | -0.24 | % | 0.00 | % | -0.13 | % | -0.13 | % | -0.07 | % | ||||||||||
ROACE excluding death benefit on BOLI | 11.34 | % | 11.40 | % | 12.02 | % | 11.38 | % | 11.65 | % | ||||||||||
Core ROACE | 11.34 | % | 11.40 | % | 12.02 | % | 11.38 | % | 11.65 | % | ||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||||||
Total stockholders’ equity | $ | 626,461 | $ | 609,468 | $ | 491,992 | $ | 477,594 | $ | 470,535 | ||||||||||
Less: Intangible assets | 179,776 | 176,864 | 130,270 | 130,755 | 131,239 | |||||||||||||||
Total tangible stockholders’ equity | $ | 446,685 | $ | 432,604 | $ | 361,722 | $ | 346,839 | $ | 339,296 | ||||||||||
Common shares outstanding | 45,061,372 | 45,052,747 | 38,375,407 | 38,367,890 | 38,362,640 | |||||||||||||||
Tangible book value per common share | $ | 9.91 | $ | 9.60 | $ | 9.43 | $ | 9.04 | $ | 8.84 |
Quantitative and Qualitative Disclosures About Market Risk
For the Three and Six Months ended June 30, 2018 and 2017
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
2018,2019, Horizon’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of Horizon’s disclosure controls (as defined in Exchange Act Rule2018,2019, there have been no changes in Horizon’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, Horizon’s internal control over financial reporting.
For the Three and Six Months ended June 30, 2018 and 2017
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Not Applicable
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
For the Three and Six Months ended June 30, 2018 and 2017
ITEM 6. | EXHIBITS |
Exhibit No. | Description | Location | ||
| ||||
31.1 | ||||
Attached | ||||
| ||||
31.2 | Attached | |||
| ||||
32 | Attached | |||
101 | Interactive Data Files | Attached |
HORIZON BANCORP, INC. | ||||||||
Dated: August | /s/ Craig M. Dwight | |||||||
Craig M. Dwight | ||||||||
Chief Executive Officer | ||||||||
Dated: August | /s/ Mark E. Secor | |||||||
Mark E. Secor | ||||||||
Chief Financial Officer |
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