Exhibit 99.1
Contact: Mark E. Secor
Chief Financial Officer
Phone: (219) 873-2611
Fax: (219) 874-9280
Date: July 23, 2015
FOR IMMEDIATE RELEASE
Horizon Bancorp Announces its 2015 Second Quarter Earnings
Michigan City, Indiana (NASDAQ GS: HBNC) – Horizon Bancorp today announced its unaudited financial results for the three and six-month periods ended June 30, 2015.
SUMMARY:
| · | On July 1, 2015, Horizon closed the acquisition of Peoples Bancorp and its wholly-owned subsidiary, Peoples Federal Savings Bank of DeKalb County, headquartered in Auburn, Indiana. Peoples’ results are not included in Horizon’s June 30, 2015 financial results. |
| · | Total loans increased 16.2% on an annualized basis during the second quarter of 2015. |
| · | Commercial loans increased 8.2% on an annualized basis during the second quarter of 2015. |
| · | Second quarter 2015 net income was $4.7 million or $.49 diluted earnings per share. |
| · | Excluding merger expenses, net income for the second quarter of 2015 was $5.2 million or $.53 diluted earnings per share. |
| · | Pre-tax, pre-provision income for the second quarter of 2015 was $8.4 million, an increase of 19.7% compared to the same period of 2014 and 6.4% compared to the previous quarter. |
| · | Net income for the first six months of 2015 increased 23.1% compared to the same period of 2014 to $10.1 million or $1.04 diluted earnings per share. |
| · | Excluding merger expenses, gain on sale of investment securities and the death benefit on bank owned life insurance, net income for the first six months of 2015 was $10.4 million or $1.08 diluted earnings per share. |
| · | Pre-tax, pre-provision income for the first six months of 2015 was $16.3 million, an increase of 44.1% compared to the first six months of 2014. |
| · | Net interest income for the first six months of 2015 increased 15.6% or $4.7 million compared to the same period in 2014. |
| · | The net interest margin, excluding the impact of acquisitions (“core net interest margin”), increased 4 basis points from the linked quarter and 5 basis points in the first six months of 2015 compared to the same period of 2014. |
| · | Non-interest income for the first six months of 2015 increased 17.3% or $2.1 million compared to the same period in 2014. |
| · | Horizon’s tangible book value per share rose to $17.06 at June 30, 2015, compared to $16.26 at December 31, 2014 and $15.47 at June 30, 2014. |
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Pg. 2 cont. Horizon Bancorp Announces 2015 Second Quarter Earnings
Craig Dwight, Chairman and CEO, commented: “Horizon’s 2015 second quarter and year-to-date results showed our continued ability to generate organic growth and solid returns across all four revenue streams - retail banking, business banking, mortgage banking and wealth management. Previous investments in people, resources and market expansion, coupled with our strategic partnership through the Peoples Bancorp acquisition, has created a strong foundation to continue our successful growth story in the future.”
Mr. Dwight continued, “Horizon’s net income of $4.7 million for the second quarter of 2015 was down from $5.4 million in the previous quarter and $4.8 million in the same period of 2014. An increase in the provision for loan losses due to a $1.3 million commercial loan charge-off was the primary reason for this decline. However, pre-tax, pre-provision income for the second quarter of 2015 increased 19.7% from the same period in 2014 and 6.4% from the previous quarter. This increase in pre-tax, pre-provision income demonstrates the earnings power garnered from our organic and strategic growth strategy.”
| Non-GAAP Reconciliation of Net Income and Diluted Earnings per Share | ||||||||||||||||
| (Dollar in Thousands Except per Share Data, Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| Non-GAAP Reconciliation of Net Income | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net income as reported | $ | 4,728 | $ | 4,778 | $ | 10,086 | $ | 8,195 | ||||||||
| Merger expenses | 570 | 900 | 716 | 1,211 | ||||||||||||
| Tax effect | (132 | ) | (315 | ) | (183 | ) | (424 | ) | ||||||||
| Net income excluding merger expenses | 5,166 | 5,363 | 10,619 | 8,982 | ||||||||||||
| Gain on sale of investment securities | - | - | (124 | ) | - | |||||||||||
| Tax effect | - | - | 43 | - | ||||||||||||
| Net income excluding gain on sale of investment securities | 5,166 | 5,363 | 10,538 | 8,982 | ||||||||||||
| Death benefit on bank owned life insurance ("BOLI") | - | - | (145 | ) | - | |||||||||||
| Tax effect | - | - | 51 | - | ||||||||||||
| Net income excluding death benefit on BOLI | 5,166 | 5,363 | 10,444 | 8,982 | ||||||||||||
| Acquisition-related purchase accounting adjustments ("PAUs") | (797 | ) | (1,199 | ) | (1,880 | ) | (1,588 | ) | ||||||||
| Tax effect | 279 | 420 | 658 | 556 | ||||||||||||
| Net income excluding PAUs | $ | 4,648 | $ | 4,584 | $ | 9,222 | $ | 7,950 | ||||||||
| Non-GAAP Reconciliation of Diluted Earnings per Share | ||||||||||||||||
| Diluted earnings per share as reported | $ | 0.49 | $ | 0.50 | $ | 1.04 | $ | 0.88 | ||||||||
| Merger expenses | 0.06 | 0.09 | 0.07 | 0.13 | ||||||||||||
| Tax effect | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.05 | ) | ||||||||
| Diluted earnings per share excluding merger expenses | 0.53 | 0.56 | 1.10 | 0.96 | ||||||||||||
| Gain on sale of investment securities | - | - | (0.01 | ) | - | |||||||||||
| Tax effect | - | - | 0.00 | - | ||||||||||||
| Net income excluding gain on sale of investment securities | 0.53 | 0.56 | 1.09 | 0.96 | ||||||||||||
| Death benefit on BOLI | - | - | (0.02 | ) | - | |||||||||||
| Tax effect | - | - | 0.01 | - | ||||||||||||
| Net income excluding death benefit on BOLI | 0.53 | 0.56 | 1.08 | 0.96 | ||||||||||||
| Acquisition-related PAUs | (0.08 | ) | (0.13 | ) | (0.20 | ) | (0.17 | ) | ||||||||
| Tax effect | 0.03 | 0.04 | 0.07 | 0.06 | ||||||||||||
| Diluted earnings per share excluding PAUs | $ | 0.48 | $ | 0.48 | $ | 0.95 | $ | 0.85 | ||||||||
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Pg. 3 cont. Horizon Bancorp Announces 2015 Second Quarter Earnings
| Non-GAAP Reconciliation of Pre-tax, Pre-Provision Income | ||||||||||||||||||||
| (Dollar in Thousands, Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30 | March 31 | June 30 | June 30 | |||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| Net income as reported | $ | 4,728 | $ | 5,358 | $ | 4,778 | $ | 10,086 | $ | 8,195 | ||||||||||
| Income tax expense | 1,752 | 1,912 | 1,890 | 3,664 | 2,753 | |||||||||||||||
| Provision for loan losses | 1,906 | 614 | 339 | 2,520 | 339 | |||||||||||||||
| Pre-tax, pre-provision income | $ | 8,386 | $ | 7,884 | $ | 7,007 | $ | 16,270 | $ | 11,287 | ||||||||||
| Loan Growth by Type | ||||||||||||||||||||
| Three Months Ended June 30, 2015 | ||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||
| Annualized | ||||||||||||||||||||
| June 30 | March 31 | Amount | Percent | Percent | ||||||||||||||||
| 2015 | 2015 | Change | Change | Change | ||||||||||||||||
| Commercial loans | $ | 709,946 | $ | 695,736 | $ | 14,210 | 2.0 | % | 8.2 | % | ||||||||||
| Residential mortgage loans | 277,407 | 260,390 | 17,017 | 6.5 | % | 26.2 | % | |||||||||||||
| Consumer loans | 336,006 | 326,334 | 9,672 | 3.0 | % | 11.9 | % | |||||||||||||
| Held for sale loans | 7,677 | 6,229 | 1,448 | 23.2 | % | 93.2 | % | |||||||||||||
| Subtotal | 1,331,036 | 1,288,689 | 42,347 | 3.3 | % | 13.2 | % | |||||||||||||
| Mortgage warehouse loans | 195,924 | 178,899 | 17,025 | 9.5 | % | 38.2 | % | |||||||||||||
| Total loans | $ | 1,526,960 | $ | 1,467,588 | $ | 59,372 | 4.0 | % | 16.2 | % | ||||||||||
| Loan Growth by Type | ||||||||||||||||||||
| Six Months Ended June 30, 2015 | ||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| Annualized | ||||||||||||||||||||
| June 30 | December 31 | Amount | Percent | Percent | ||||||||||||||||
| 2015 | 2014 | Change | Change | Change | ||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Commercial loans | $ | 709,946 | $ | 674,314 | $ | 35,632 | 5.3 | % | 10.7 | % | ||||||||||
| Residential mortgage loans | 277,407 | 254,625 | 22,782 | 8.9 | % | 18.0 | % | |||||||||||||
| Consumer loans | 336,006 | 320,459 | 15,547 | 4.9 | % | 9.8 | % | |||||||||||||
| Held for sale loans | 7,677 | 6,143 | 1,534 | 25.0 | % | 50.4 | % | |||||||||||||
| Subtotal | 1,331,036 | 1,255,541 | 75,495 | 6.0 | % | 12.1 | % | |||||||||||||
| Mortgage warehouse loans | 195,924 | 129,156 | 66,768 | 51.7 | % | 104.2 | % | |||||||||||||
| Total loans | $ | 1,526,960 | $ | 1,384,697 | $ | 142,263 | 10.3 | % | 20.7 | % | ||||||||||
“Once again, our continued loan growth in the second quarter was critical in combatting persistent margin pressure,” Mr. Dwight commented. “Horizon’s core net interest margin, excluding income from acquisition-related purchase accounting adjustments, increased 4 basis points from the linked quarter and 5 basis points in the first six months of 2015 compared to the same period of 2014.”
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Pg. 4 cont. Horizon Bancorp Announces 2015 Second Quarter Earnings
| Non-GAAP Reconciliation of Net Interest Margin | ||||||||||||||||||||
(Dollar Amounts in Thousands, Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30 | March 31 | June 30 | June 30 | |||||||||||||||||
| Net Interest Margin As Reported | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| Net interest income | $ | 17,850 | $ | 16,886 | $ | 16,788 | $ | 34,736 | $ | 30,060 | ||||||||||
| Average interest-earning assets | 2,008,191 | 1,899,870 | 1,832,576 | 1,954,287 | 1,715,939 | |||||||||||||||
| Net interest income as a percent of average interest- | ||||||||||||||||||||
| earning assets ("Net Interest Margin") | 3.67 | % | 3.70 | % | 3.78 | % | 3.68 | % | 3.62 | % | ||||||||||
| Impact of Acquisitions | ||||||||||||||||||||
| Interest income from acquisition-related PAUs | $ | (797 | ) | $ | (1,083 | ) | $ | (1,199 | ) | $ | (1,880 | ) | $ | (1,588 | ) | |||||
| Excluding Impact of Acquisitions | ||||||||||||||||||||
| Net interest income | $ | 17,053 | $ | 15,803 | $ | 15,589 | $ | 32,856 | $ | 28,472 | ||||||||||
| Average interest-earning assets | 2,008,191 | 1,899,870 | 1,832,576 | 1,954,287 | 1,715,939 | |||||||||||||||
| Core Net Interest Margin | 3.51 | % | 3.47 | % | 3.51 | % | 3.49 | % | 3.44 | % | ||||||||||
With respect to the increase in the provision for loan losses for the three and six-month periods ending June 30, 2015 compared to the same periods of the previous year, Mr. Dwight stated, “This increase reflects loan growth as well as a $1.3 million commercial loan charge-off during the second quarter related to a legacy workout credit which recently became impaired. Non-performing loans increased $609,000 compared to December 31, 2014; however, non-performing loans to total loans was down 11 basis points to 1.51% as of June 30, 2015. The increase in non-performing loans reflects our continued loan growth as credit conditions remain stable across the portfolio.”
Horizon’s loan loss reserve ratio, excluding loans with credit-related purchase accounting adjustments, was 1.15% as of June 30, 2015.
| Allowance for Loan and Lease Loss Detail | ||||||||||||||||
| As of June 30, 2015 | ||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||
| Horizon | ||||||||||||||||
| Legacy | Heartland | Summit | Total | |||||||||||||
| Pre-discount loan balance | $ | 1,403,809 | $ | 31,777 | $ | 88,908 | $ | 1,524,494 | ||||||||
| Allowance for loan losses (ALLL) | 16,138 | 276 | 7 | 16,421 | ||||||||||||
| Loan discount | N/A | 1,903 | 3,308 | 5,211 | ||||||||||||
| ALLL+loan discount | 16,138 | 2,179 | 3,315 | 21,632 | ||||||||||||
| Loans, net | $ | 1,387,671 | $ | 29,598 | $ | 85,593 | $ | 1,502,862 | ||||||||
| ALLL/ pre-discount loan balance | 1.15 | % | 0.87 | % | 0.01 | % | 1.08 | % | ||||||||
| Loan discount/ pre-discount loan balance | N/ | A | 5.99 | % | 3.72 | % | 0.34 | % | ||||||||
| ALLL+loan discount/ pre-discount loan balance | 1.15 | % | 6.86 | % | 3.73 | % | 1.42 | % | ||||||||
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Pg. 5 cont. Horizon Bancorp Announces 2015 Second Quarter Earnings
On July 1, 2015, Horizon completed its acquisition of Peoples Bancorp and its wholly-owned subsidiary, Peoples Federal Savings Bank of DeKalb County (collectively, “Peoples”). Dwight noted, “Peoples fits well into Horizon’s strategic plan to expand in the states of Indiana and Michigan by expanding our footprint further into northeast Indiana and southwest Michigan. The integration process is well under way, and we are thrilled to have this talented and dedicated group of individuals join our growing organization. We look forward to bringing the Peoples’ customer base an expanded product and service suite with a continued focus on community banking and participation.”
Income Statement Highlights
Net income for the second quarter of 2015 was $4.7 million or $.49 diluted earnings per share compared to $4.8 million or $.50 diluted earnings per share in the second quarter of 2014. The decrease in net income and earnings per share from the previous year reflects an increase in the provision for loan losses of $1.6 million primarily due to one commercial loan charge-off of $1.3 million, and an increase in non-interest expenses of $242,000 primarily due to an increase in salaries and employee benefits, professional fees and loan expense. Excluding acquisition-related expenses and purchase accounting adjustments, net income for the second quarter of 2015 was $4.6 million or $.48 diluted earnings per share compared to $4.6 million or $.48 diluted earnings per share in the second quarter of 2014.
Net income for the six months ended June 30, 2015 was $10.1 million or $1.04 diluted earnings per share compared to $8.2 million or $.88 diluted earnings per share for the six months ended June 30, 2014. The increase in net income from the previous year reflects an increase in net interest income of $4.7 million or 15.6% and an increase in non-interest income of $2.1 million or 17.3%, partially offset by an increase in provision for loan losses of $2.2 million, an increase in non-interest expenses of $1.8 million and an increase in income tax expense of $911,000. Excluding acquisition-related expenses and purchase accounting adjustments, gain on sale of investment securities and the death benefit on bank owned life insurance, net income for the first six months of 2015 was $9.2 million or $.95 diluted earnings per share compared to $8.0 million or $.85 diluted earnings per share in the same period of 2014.
Horizon’s net interest margin was 3.67% during the second quarter of 2015, down from 3.70% for the prior quarter and 3.78% for same period of 2014. The decrease in net interest margin compared to the prior quarter and the same period of 2014 was due to lower yields on new loans and re-pricing earning assets and a decrease in interest income from acquisition-related purchase accounting adjustments. Excluding purchase accounting adjustments related to the 2012 Heartland Bancshares, Inc. and the 2014 SCB Bancorp, Inc. acquisitions, the margin would have been 3.51% for the second quarter of 2015 compared to 3.47% for the prior quarter and 3.51% for the same period of 2014. Interest income from acquisition-related purchase accounting adjustments was $797,000, $1.1 million, and $1.2 million for the three months ended June 30, 2015, March 31, 2015 and June 30, 2014, respectively.
Horizon’s net interest margin was 3.68% for the six months ending June 30, 2015, up from 3.62% for same period of 2014. Excluding interest income from acquisition-related purchase accounting
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Pg. 6 cont. Horizon Bancorp Announces 2015 Second Quarter Earnings
adjustments, the margin would have been 3.49% for the six months ending June 30, 2015 compared to 3.44% for same period of 2014. Interest income from acquisition-related purchase accounting adjustments was $1.9 million and $1.6 million for the six months ended June 30, 2015 and June 30, 2014, respectively.
Residential mortgage lending activity during the second quarter of 2015 generated $2.6 million in income from the gain on sale of mortgage loans, an increase of $105,000 from the same period of 2014. Total origination volume in the second quarter of 2015, including loans placed into portfolio, totaled $114.4 million, representing an increase of 38.8% from the same period of 2014 of $82.4 million. Purchase money mortgage originations during the second quarter of 2015 represented 71.8% of total originations compared to 50.2% of originations during the previous quarter and 77.5% during the second quarter of 2014.
Lending Activity
Total loans increased $142.3 million from $1.4 billion as of December 31, 2014 to $1.5 billion as of June 30, 2015 as mortgage warehouse loans increased by $66.8 million, residential mortgage loans increased by $22.8 million and consumer loans increased by $15.5 million. Commercial loans increased $35.6 million or 10.7% on an annualized basis from $674.3 million at December 31, 2014 to $709.9 million at June 30, 2015.
Total loan balances in the Kalamazoo and Indianapolis markets continued to grow during the second quarter of 2015 to $154.4 million and $145.4 million, respectively, as of June 30, 2015. Kalamazoo’s aggregate loan balances increased $8.6 million or 5.9%, and Indianapolis’ aggregate loan balances increased $12.6 million or 9.4%. Combined, these markets contributed $21.2 million in loan growth during the second quarter of 2015 or 7.6%.
The provision for loan losses was $1.9 million for the second quarter and $2.5 million for the first six months of 2015, which was $1.6 million and $2.2 million higher than the provision for the second quarter and first six months of 2014, respectively. The higher provision for loan losses in the second quarter and for the first six months of 2015 compared to the same periods of 2014 was due to the charge-off of one commercial credit of $1.3 million as well as continued loan growth. The $1.3 million commercial charge-off was a legacy workout loan that was recently determined to be impaired due to the borrower’s inability to make payments and a decrease in collateral value.
The ratio of the allowance for loan losses to total loans decreased to 1.08% as of June 30, 2015 from 1.19% as of December 31, 2014 due to an increase in total loans and a decrease in the allowance for loan losses from $16.5 million as of December 31, 2014 to $16.4 million as of June 30, 2015. The ratio of the allowance for loan losses to total loans, excluding loans with credit-related purchase accounting adjustments, was 1.15% as of June 30, 2015.
Non-performing loans totaled $23.1 million as of June 30, 2015 and $22.4 million as of December 31, 2014. Compared to December 31, 2014, non-performing commercial loans increased by $1.5 million and non-performing real estate and consumer loans decreased by $75,000 and $845,000, respectively. As a percentage of total loans, non-performing loans were 1.51% at June 30, 2015, down 11 basis points from 1.62% at December 31, 2014.
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Pg. 7 cont. Horizon Bancorp Announces 2015 Second Quarter Earnings
Expense Management
Total non-interest expense was $242,000 higher in the second quarter of 2015 compared to the same period of 2014. The increase was primarily due to an increase in salaries and employee benefits, professional fees and loan expense related to overall company growth.
Total non-interest expense was $1.8 million higher in the first six months of 2015 compared to the same period of 2014. The increase in non-interest expense was primarily related to an increase in salaries and employee benefits costs of $1.1 million and net occupancy expenses of $142,000 due to overall company growth as well as the Summit acquisition. The increase was also due to an increase in professional fees, loan expense, FDIC insurance expense and other expense due to overall company growth. The increase was partially offset by a decrease in outside services and consultants of $415,000 due to the expense associated with the Summit acquisition in the second quarter of 2014.
Use of Non-GAAP Financial Measures
Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures of the net interest margin and the allowance for loan and lease losses excluding the impact of acquisition-related purchase accounting adjustments and net income and diluted earnings per share excluding the impact of one-time costs related to acquisitions, acquisition-related purchase accounting adjustments and other events that are considered to be non-recurring. Horizon believes that these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business without giving effect to the purchase accounting impacts and one-time costs of acquisitions and non-core items, although these measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure.
About Horizon
Horizon Bancorp is a locally owned, independent, commercial bank holding company serving Northern and Central Indiana and Southwest and Central Michigan through its commercial banking subsidiary Horizon Bank, NA. Horizon also offers mortgage-banking services throughout the Midwest. Horizon Bancorp may be reached online at www.horizonbank.com. Its common stock is
traded on the NASDAQ Global Select Market under the symbol HBNC.
Forward Looking Statements
This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon. For these statements, Horizon claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in
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Pg. 8 cont. Horizon Bancorp Announces 2015 Second Quarter Earnings
conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Horizon’s reports filed with the Securities and Exchange Commission, including those described in its Form 10-K. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
| Contact: | Horizon Bancorp |
| Mark E. Secor | |
| Chief Financial Officer | |
| (219) 873-2611 | |
| Fax: (219) 874-9280 |
# # #
HORIZON BANCORP
Financial Highlights
(Dollars in thousands except share and per share data and ratios, Unaudited)
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Balance sheet: | ||||||||||||||||||||
| Total assets | $ | 2,219,307 | $ | 2,153,965 | $ | 2,076,922 | $ | 2,037,045 | $ | 2,073,251 | ||||||||||
| Investment securities | 493,631 | 495,315 | 489,531 | 495,941 | 537,618 | |||||||||||||||
| Commercial loans | 709,946 | 695,736 | 674,314 | 677,349 | 648,202 | |||||||||||||||
| Mortgage warehouse loans | 195,924 | 178,899 | 129,156 | 105,133 | 140,896 | |||||||||||||||
| Residential mortgage loans | 277,407 | 260,390 | 254,625 | 251,739 | 235,523 | |||||||||||||||
| Consumer loans | 336,006 | 326,334 | 320,459 | 308,800 | 296,873 | |||||||||||||||
| Earning assets | 2,031,671 | 1,974,251 | 1,885,576 | 1,860,041 | 1,882,724 | |||||||||||||||
| Non-interest bearing deposit accounts | 307,215 | 285,181 | 267,667 | 278,527 | 270,023 | |||||||||||||||
| Interest bearing transaction accounts | 983,912 | 905,216 | 930,582 | 881,299 | 919,024 | |||||||||||||||
| Time deposits | 293,596 | 274,699 | 284,070 | 289,837 | 310,056 | |||||||||||||||
| Borrowings | 385,236 | 440,415 | 351,198 | 350,113 | 340,201 | |||||||||||||||
| Subordinated debentures | 32,719 | 32,680 | 32,642 | 32,603 | 32,564 | |||||||||||||||
| Common stockholders' equity | 189,631 | 186,991 | 181,914 | 177,280 | 174,836 | |||||||||||||||
| Total stockholders’ equity | 202,131 | 199,491 | 194,414 | 189,780 | 187,336 | |||||||||||||||
| Income statement: | Three months ended | |||||||||||||||||||
| Net interest income | $ | 17,850 | $ | 16,886 | $ | 16,523 | $ | 16,400 | $ | 16,788 | ||||||||||
| Provision for loan losses | 1,906 | 614 | 978 | 1,741 | 339 | |||||||||||||||
| Non-interest income | 7,186 | 7,066 | 6,738 | 7,390 | 6,627 | |||||||||||||||
| Non-interest expenses | 16,650 | 16,068 | 15,671 | 15,353 | 16,408 | |||||||||||||||
| Income tax expense | 1,752 | 1,912 | 1,664 | 1,738 | 1,890 | |||||||||||||||
| Net income | 4,728 | 5,358 | 4,948 | 4,958 | 4,778 | |||||||||||||||
| Preferred stock dividend | (31 | ) | (31 | ) | (31 | ) | (40 | ) | (32 | ) | ||||||||||
| Net income available to common shareholders | $ | 4,697 | $ | 5,327 | $ | 4,917 | $ | 4,918 | $ | 4,746 | ||||||||||
| Per share data: | ||||||||||||||||||||
| Basic earnings per share | $ | 0.51 | $ | 0.58 | $ | 0.53 | $ | 0.53 | $ | 0.52 | ||||||||||
| Diluted earnings per share | 0.49 | 0.55 | 0.51 | 0.51 | 0.50 | |||||||||||||||
| Cash dividends declared per common share | 0.14 | 0.14 | 0.14 | 0.13 | 0.13 | |||||||||||||||
| Book value per common share | 20.49 | 20.25 | 19.75 | 19.25 | 19.00 | |||||||||||||||
| Tangible book value per common share | 17.06 | 16.80 | 16.26 | 15.75 | 15.47 | |||||||||||||||
| Market value - high | 26.03 | 25.86 | 26.73 | 23.67 | 22.58 | |||||||||||||||
| Market value - low | $ | 22.85 | $ | 22.38 | $ | 22.83 | $ | 20.65 | $ | 19.57 | ||||||||||
| Weighted average shares outstanding - Basic | 9,240,005 | 9,216,011 | 9,212,156 | 9,208,707 | 9,182,986 | |||||||||||||||
| Weighted average shares outstanding - Diluted | 9,637,586 | 9,609,506 | 9,628,240 | 9,588,332 | 9,560,939 | |||||||||||||||
| Key ratios: | ||||||||||||||||||||
| Return on average assets | 0.87 | % | 1.05 | % | 0.96 | % | 0.96 | % | 0.97 | % | ||||||||||
| Return on average common stockholders' equity | 9.88 | 11.66 | 10.72 | 10.95 | 11.82 | |||||||||||||||
| Net interest margin | 3.67 | 3.70 | 3.64 | 3.59 | 3.78 | |||||||||||||||
| Loan loss reserve to total loans | 1.08 | 1.13 | 1.19 | 1.20 | 1.18 | |||||||||||||||
| Non-performing loans to loans | 1.51 | 1.52 | 1.62 | 1.47 | 1.41 | |||||||||||||||
| Average equity to average assets | 9.32 | 9.56 | 9.56 | 9.33 | 8.79 | |||||||||||||||
| Bank only capital ratios: | ||||||||||||||||||||
| Tier 1 capital to average assets | 8.18 | 8.75 | 8.80 | 8.63 | 8.78 | |||||||||||||||
| Tier 1 capital to risk weighted assets | 11.04 | 11.47 | 11.96 | 12.13 | 11.47 | |||||||||||||||
| Total capital to risk weighted assets | 12.08 | 12.54 | 13.08 | 13.26 | 12.53 | |||||||||||||||
| Loan data: | ||||||||||||||||||||
| Substandard loans | $ | 28,220 | $ | 27,355 | $ | 27,661 | $ | 35,023 | $ | 35,495 | ||||||||||
| 30 to 89 days delinquent | 3,326 | 3,945 | 5,082 | 3,310 | 3,671 | |||||||||||||||
| 90 days and greater delinquent - accruing interest | $ | 207 | $ | 19 | $ | 115 | $ | 62 | $ | 42 | ||||||||||
| Trouble debt restructures - accruing interest | 3,271 | 4,368 | 4,372 | 5,838 | 5,614 | |||||||||||||||
| Trouble debt restructures - non-accrual | 4,523 | 4,711 | 2,643 | 3,061 | 3,178 | |||||||||||||||
| Non-accrual loans | 15,050 | 13,282 | 15,312 | 10,828 | 9,844 | |||||||||||||||
| Total non-performing loans | $ | 23,051 | $ | 22,380 | $ | 22,442 | $ | 19,789 | $ | 18,678 | ||||||||||
HORIZON BANCORP
Financial Highlights
(Dollars in thousands except share and per share data and ratios, Unaudited)
| June 30 | June 30 | |||||||
| 2015 | 2014 | |||||||
| Balance sheet: | ||||||||
| Total assets | $ | 2,219,307 | $ | 2,073,251 | ||||
| Investment securities | 493,631 | 537,618 | ||||||
| Commercial loans | 709,946 | 648,202 | ||||||
| Mortgage warehouse loans | 195,924 | 140,896 | ||||||
| Residential mortgage loans | 277,407 | 235,523 | ||||||
| Consumer loans | 336,006 | 296,873 | ||||||
| Earning assets | 2,031,671 | 1,882,724 | ||||||
| Non-interest bearing deposit accounts | 307,215 | 270,023 | ||||||
| Interest bearing transaction accounts | 983,912 | 919,024 | ||||||
| Time deposits | 293,596 | 310,056 | ||||||
| Borrowings | 385,236 | 340,201 | ||||||
| Subordinated debentures | 32,719 | 32,564 | ||||||
| Common stockholders' equity | 189,631 | 174,836 | ||||||
| Total stockholders’ equity | 202,131 | 187,336 | ||||||
| Income statement: | Six Months Ended | |||||||
| Net interest income | $ | 34,736 | $ | 30,060 | ||||
| Provision for loan losses | 2,520 | 339 | ||||||
| Non-interest income | 14,252 | 12,149 | ||||||
| Non-interest expenses | 32,718 | 30,922 | ||||||
| Income tax expense | 3,664 | 2,753 | ||||||
| Net income | 10,086 | 8,195 | ||||||
| Preferred stock dividend | (63 | ) | (63 | ) | ||||
| Net income available to common shareholders | $ | 10,023 | $ | 8,132 | ||||
| Per share data: | ||||||||
| Basic earnings per share | $ | 1.09 | $ | 0.91 | ||||
| Diluted earnings per share | 1.04 | 0.88 | ||||||
| Cash dividends declared per common share | 0.28 | 0.24 | ||||||
| Book value per common share | 20.49 | 19.00 | ||||||
| Tangible book value per common share | 17.06 | 15.47 | ||||||
| Market value - high | 26.14 | 24.91 | ||||||
| Market value - low | $ | 22.38 | $ | 19.57 | ||||
| Weighted average shares outstanding - Basic | 9,228,075 | 8,908,492 | ||||||
| Weighted average shares outstanding - Diluted | 9,615,551 | 9,293,423 | ||||||
| Key ratios: | ||||||||
| Return on average assets | 0.96 | % | 0.89 | % | ||||
| Return on average common stockholders' equity | 10.73 | 10.40 | ||||||
| Net interest margin | 3.68 | 3.62 | ||||||
| Loan loss reserve to total loans | 1.08 | 1.18 | ||||||
| Non-performing loans to loans | 1.51 | 1.41 | ||||||
| Average equity to average assets | 9.45 | 9.20 | ||||||
| Bank only capital ratios: | ||||||||
| Tier 1 capital to average assets | 8.18 | 8.82 | ||||||
| Tier 1 capital to risk weighted assets | 11.04 | 11.48 | ||||||
| Total capital to risk weighted assets | 12.08 | 12.54 | ||||||
| Loan data: | ||||||||
| Substandard loans | $ | 28,220 | $ | 35,495 | ||||
| 30 to 89 days delinquent | 3,326 | 3,671 | ||||||
| 90 days and greater delinquent - accruing interest | $ | 207 | $ | 42 | ||||
| Trouble debt restructures - accruing interest | 3,271 | 5,614 | ||||||
| Trouble debt restructures - non-accrual | 4,523 | 3,178 | ||||||
| Non-accrual loans | 15,050 | 9,844 | ||||||
| Total non-performing loans | $ | 23,051 | $ | 18,678 | ||||
HORIZON BANCORP
Allocation of the Allowance for Loan and Lease Losses
(Dollars in Thousands, Unaudited)
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Commercial | $ | 8,386 | $ | 7,876 | $ | 7,910 | $ | 7,515 | $ | 6,958 | ||||||||||
| Real estate | 3,044 | 3,281 | 2,508 | 3,304 | 2,367 | |||||||||||||||
| Mortgage warehousing | 1,319 | 1,272 | 1,132 | 1,300 | 1,559 | |||||||||||||||
| Consumer | 3,672 | 4,205 | 4,951 | 4,041 | 4,776 | |||||||||||||||
| Total | $ | 16,421 | $ | 16,634 | $ | 16,501 | $ | 16,160 | $ | 15,660 | ||||||||||
Net Charge-offs (Recoveries)
(Dollars in Thousands, Unaudited)
| Three months ended | ||||||||||||||||||||
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Commercial | $ | 1,584 | $ | (11 | ) | $ | 199 | $ | 1,006 | $ | 185 | |||||||||
| Real estate | 160 | 20 | 101 | 19 | 169 | |||||||||||||||
| Mortgage warehousing | - | - | - | - | - | |||||||||||||||
| Consumer | 375 | 472 | 336 | 217 | 426 | |||||||||||||||
| Total | $ | 2,119 | $ | 481 | $ | 636 | $ | 1,242 | $ | 780 | ||||||||||
Total Non-performing Loans
(Dollars in Thousands, Unaudited)
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Commercial | $ | 13,384 | $ | 11,540 | $ | 11,855 | $ | 9,323 | $ | 8,243 | ||||||||||
| Real estate | 5,819 | 6,062 | 5,894 | 6,312 | 6,672 | |||||||||||||||
| Mortgage warehousing | - | - | - | - | - | |||||||||||||||
| Consumer | 3,848 | 4,778 | 4,693 | 4,154 | 3,763 | |||||||||||||||
| Total | $ | 23,051 | $ | 22,380 | $ | 22,442 | $ | 19,789 | $ | 18,678 | ||||||||||
Other Real Estate Owned and Repossessed Assets
(Dollars in Thousands, Unaudited)
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||
| Commercial | $ | 376 | $ | 307 | $ | 411 | $ | 376 | $ | 452 | ||||||||||
| Real estate | 58 | 219 | 636 | 875 | 752 | |||||||||||||||
| Mortgage warehousing | - | - | - | - | - | |||||||||||||||
| Consumer | 37 | 223 | 154 | 3 | 23 | |||||||||||||||
| Total | $ | 471 | $ | 749 | $ | 1,201 | $ | 1,254 | $ | 1,227 | ||||||||||
HORIZON BANCORP AND SUBSIDIARIES
Average Balance Sheets
(Dollar Amounts in Thousands, Unaudited)
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||
| June 30, 2015 | June 30, 2014 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||
| Federal funds sold | $ | 3,597 | $ | 2 | 0.22 | % | $ | 9,062 | $ | 5 | 0.22 | % | ||||||||||||
| Interest-earning deposits | 8,608 | 5 | 0.23 | % | 7,987 | 4 | 0.20 | % | ||||||||||||||||
| Investment securities - taxable | 363,919 | 2,060 | 2.27 | % | 403,910 | 2,386 | 2.37 | % | ||||||||||||||||
| Investment securities - non-taxable (1) | 141,784 | 1,079 | 4.24 | % | 145,591 | 1,096 | 4.25 | % | ||||||||||||||||
| Loans receivable (2)(3) | 1,490,283 | 17,981 | 4.87 | % | 1,266,026 | 16,631 | 5.27 | % | ||||||||||||||||
| Total interest-earning assets (1) | 2,008,191 | 21,127 | 4.33 | % | 1,832,576 | 20,122 | 4.51 | % | ||||||||||||||||
| Non-interest-earning assets | ||||||||||||||||||||||||
| Cash and due from banks | 31,783 | 28,106 | ||||||||||||||||||||||
| Allowance for loan losses | (16,756 | ) | (15,808 | ) | ||||||||||||||||||||
| Other assets | 157,795 | 129,608 | ||||||||||||||||||||||
| $ | 2,181,013 | $ | 1,974,482 | |||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||
| Interest-bearing deposits | $ | 1,255,123 | $ | 1,237 | 0.40 | % | $ | 1,229,025 | $ | 1,355 | 0.44 | % | ||||||||||||
| Borrowings | 381,782 | 1,539 | 1.62 | % | 273,968 | 1,478 | 2.16 | % | ||||||||||||||||
| Subordinated debentures | 32,699 | 501 | 6.15 | % | 32,541 | 501 | 6.18 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,669,604 | 3,277 | 0.79 | % | 1,535,534 | 3,334 | 0.87 | % | ||||||||||||||||
| Non-interest-bearing liabilities | ||||||||||||||||||||||||
| Demand deposits | 294,425 | 253,093 | ||||||||||||||||||||||
| Accrued interest payable and other liabilities | 13,770 | 12,245 | ||||||||||||||||||||||
| Shareholders' equity | 203,214 | 173,610 | ||||||||||||||||||||||
| $ | 2,181,013 | $ | 1,974,482 | |||||||||||||||||||||
| Net interest income/spread | $ | 17,850 | 3.54 | % | $ | 16,788 | 3.63 | % | ||||||||||||||||
| Net interest income as a percent of average interest earning assets (1) | 3.67 | % | 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) | Non-accruing loans for the purpose of the computations above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. |
HORIZON BANCORP AND SUBSIDIARIES
Average Balance Sheets
(Dollar Amounts in Thousands, Unaudited)
| Six Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, 2015 | June 30, 2014 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||
| Federal funds sold | $ | 4,198 | $ | 11 | 0.53 | % | $ | 7,842 | $ | 9 | 0.23 | % | ||||||||||||
| Interest-earning deposits | 9,684 | 10 | 0.21 | % | 6,855 | 7 | 0.21 | % | ||||||||||||||||
| Investment securities - taxable | 362,250 | 4,200 | 2.34 | % | 395,406 | 4,769 | 2.43 | % | ||||||||||||||||
| Investment securities - non-taxable (1) | 141,269 | 2,156 | 4.27 | % | 146,709 | 2,219 | 4.07 | % | ||||||||||||||||
| Loans receivable (2)(3) | 1,436,886 | 34,843 | 4.90 | % | 1,159,127 | 29,585 | 5.15 | % | ||||||||||||||||
| Total interest-earning assets (1) | 1,954,287 | 41,220 | 4.35 | % | 1,715,939 | 36,589 | 4.39 | % | ||||||||||||||||
| Non-interest-earning assets | ||||||||||||||||||||||||
| Cash and due from banks | 30,396 | 26,507 | ||||||||||||||||||||||
| Allowance for loan losses | (16,623 | ) | (15,987 | ) | ||||||||||||||||||||
| Other assets | 157,669 | 133,408 | ||||||||||||||||||||||
| $ | 2,125,729 | $ | 1,859,867 | |||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||
| Interest-bearing deposits | $ | 1,235,601 | $ | 2,469 | 0.40 | % | $ | 1,154,682 | $ | 2,632 | 0.46 | % | ||||||||||||
| Borrowings | 359,436 | 3,018 | 1.69 | % | 250,761 | 2,900 | 2.33 | % | ||||||||||||||||
| Subordinated debentures | 32,678 | 997 | 6.15 | % | 32,522 | 997 | 6.18 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,627,715 | 6,484 | 0.80 | % | 1,437,965 | 6,529 | 0.92 | % | ||||||||||||||||
| Non-interest-bearing liabilities | ||||||||||||||||||||||||
| Demand deposits | 282,796 | 238,579 | ||||||||||||||||||||||
| Accrued interest payable and other liabilities | 14,374 | 12,191 | ||||||||||||||||||||||
| Shareholders' equity | 200,844 | 171,132 | ||||||||||||||||||||||
| $ | 2,125,729 | $ | 1,859,867 | |||||||||||||||||||||
| Net interest income/spread | $ | 34,736 | 3.55 | % | $ | 30,060 | 3.47 | % | ||||||||||||||||
| Net interest income as a percent of average interest earning assets (1) | 3.68 | % | 3.62 | % | ||||||||||||||||||||
| (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) | Non-accruing loans for the purpose of the computations above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. |
HORIZON BANCORP AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollar Amounts in Thousands)
| June 30 | December 31 | |||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash and due from banks | $ | 43,857 | $ | 43,476 | ||||
| Investment securities, available for sale | 330,970 | 323,764 | ||||||
| Investment securities, held to maturity (fair value of $167,581 and $169,904) | 162,661 | 165,767 | ||||||
| Loans held for sale | 7,677 | 6,143 | ||||||
| Loans, net of allowance for loan losses of $16,421 and $16,501 | 1,502,862 | 1,362,053 | ||||||
| Premises and equipment, net | 54,778 | 52,461 | ||||||
| Federal Reserve and Federal Home Loan Bank stock | 11,080 | 11,348 | ||||||
| Goodwill | 28,176 | 28,176 | ||||||
| Other intangible assets | 3,531 | 3,965 | ||||||
| Interest receivable | 8,823 | 8,246 | ||||||
| Cash value of life insurance | 39,897 | 39,382 | ||||||
| Other assets | 24,995 | 32,141 | ||||||
| Total assets | $ | 2,219,307 | $ | 2,076,922 | ||||
| Liabilities | ||||||||
| Deposits | ||||||||
| Non-interest bearing | $ | 307,215 | $ | 267,667 | ||||
| Interest bearing | 1,277,508 | 1,214,652 | ||||||
| Total deposits | 1,584,723 | 1,482,319 | ||||||
| Borrowings | 385,236 | 351,198 | ||||||
| Subordinated debentures | 32,719 | 32,642 | ||||||
| Interest payable | 461 | 497 | ||||||
| Other liabilities | 14,037 | 15,852 | ||||||
| Total liabilities | 2,017,176 | 1,882,508 | ||||||
| Commitments and contingent liabilities | ||||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, Authorized, 1,000,000 shares | ||||||||
| Series B shares $.01 par value, $1,000 liquidation value | ||||||||
| Issued 12,500 shares | 12,500 | 12,500 | ||||||
| Common stock, no par value | ||||||||
| Authorized, 22,500,000 shares | ||||||||
| Issued, 9,313,779 and 9,278,916 shares | ||||||||
| Outstanding, 9,256,026 and 9,213,036 shares | - | - | ||||||
| Additional paid-in capital | 46,622 | 45,916 | ||||||
| Retained earnings | 141,889 | 134,477 | ||||||
| Accumulated other comprehensive income | 1,120 | 1,521 | ||||||
| Total stockholders’ equity | 202,131 | 194,414 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,219,307 | $ | 2,076,922 | ||||
HORIZON BANCORP AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Dollar Amounts in Thousands, Except Per Share Data, Unaudited)
(Dollar Amounts in Thousands, Except Per Share Data, Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Interest Income | ||||||||||||||||
| Loans receivable | $ | 17,981 | $ | 16,631 | $ | 34,843 | $ | 29,585 | ||||||||
| Investment securities | ||||||||||||||||
| Taxable | 2,067 | 2,395 | 4,221 | 4,785 | ||||||||||||
| Tax exempt | 1,079 | 1,096 | 2,156 | 2,219 | ||||||||||||
| Total interest income | 21,127 | 20,122 | 41,220 | 36,589 | ||||||||||||
| Interest Expense | ||||||||||||||||
| Deposits | 1,237 | 1,355 | 2,469 | 2,632 | ||||||||||||
| Borrowed funds | 1,539 | 1,478 | 3,018 | 2,900 | ||||||||||||
| Subordinated debentures | 501 | 501 | 997 | 997 | ||||||||||||
| Total interest expense | 3,277 | 3,334 | 6,484 | 6,529 | ||||||||||||
| Net Interest Income | 17,850 | 16,788 | 34,736 | 30,060 | ||||||||||||
| Provision for loan losses | 1,906 | 339 | 2,520 | 339 | ||||||||||||
| Net Interest Income after Provision for Loan Losses | 15,944 | 16,449 | 32,216 | 29,721 | ||||||||||||
| Non-interest Income | ||||||||||||||||
| Service charges on deposit accounts | 1,085 | 1,038 | 2,084 | 1,961 | ||||||||||||
| Wire transfer fees | 182 | 145 | 333 | 257 | ||||||||||||
| Interchange fees | 1,366 | 1,254 | 2,468 | 2,213 | ||||||||||||
| Fiduciary activities | 1,216 | 1,199 | 2,513 | 2,247 | ||||||||||||
| Gain on sale of investment securities (includes $0 for the three months ended and and $124 for the six months ended June 30, 2015 and $0 for the three and six months ended June 30, 2014, related to accumulated other comprehensive earnings reclassifications) | - | - | 124 | - | ||||||||||||
| Gain on sale of mortgage loans | 2,642 | 2,537 | 5,021 | 3,948 | ||||||||||||
| Mortgage servicing income net of impairment | 300 | 233 | 479 | 440 | ||||||||||||
| Increase in cash value of bank owned life insurance | 257 | 252 | 515 | 485 | ||||||||||||
| Death benefit on bank owned life insurance | - | - | 145 | - | ||||||||||||
| Other income | 138 | (31 | ) | 570 | 598 | |||||||||||
| Total non-interest income | 7,186 | 6,627 | 14,252 | 12,149 | ||||||||||||
| Non-interest Expense | ||||||||||||||||
| Salaries and employee benefits | 8,385 | 8,293 | 16,889 | 15,776 | ||||||||||||
| Net occupancy expenses | 1,375 | 1,360 | 2,926 | 2,784 | ||||||||||||
| Data processing | 966 | 937 | 1,889 | 1,807 | ||||||||||||
| Professional fees | 660 | 419 | 1,187 | 1,027 | ||||||||||||
| Outside services and consultants | 918 | 1,298 | 1,544 | 1,959 | ||||||||||||
| Loan expense | 1,367 | 1,272 | 2,624 | 2,287 | ||||||||||||
| FDIC insurance expense | 339 | 285 | 676 | 541 | ||||||||||||
| Other losses | 150 | 95 | 105 | 133 | ||||||||||||
| Other expense | 2,490 | 2,449 | 4,878 | 4,608 | ||||||||||||
| Total non-interest expense | 16,650 | 16,408 | 32,718 | 30,922 | ||||||||||||
| Income Before Income Tax | 6,480 | 6,668 | 13,750 | 10,948 | ||||||||||||
| Income tax expense (includes $0 for the three months ended and $43 for the six months ended June 30, 2015 and $0 for the three and six months ended June 30, 2014, related to income tax expense from reclassification items) | 1,752 | 1,890 | 3,664 | 2,753 | ||||||||||||
| Net Income | 4,728 | 4,778 | 10,086 | 8,195 | ||||||||||||
| Preferred stock dividend | (31 | ) | (32 | ) | (63 | ) | (63 | ) | ||||||||
| Net Income Available to Common Shareholders | $ | 4,697 | $ | 4,746 | $ | 10,023 | $ | 8,132 | ||||||||
| Basic Earnings Per Share | $ | 0.51 | $ | 0.52 | $ | 1.09 | $ | 0.91 | ||||||||
| Diluted Earnings Per Share | 0.49 | 0.50 | 1.04 | 0.88 | ||||||||||||