HBNC - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, everyone, and welcome to the Horizon Bancorp Conference Call to discuss financial results for the three months ended June 30, 2020. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded.

Before turning the call over to management, I would like to remind everyone that today's call may contain forward-looking statements related to Horizon that may generally be identified as describing the company's future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. made Securities the XXXX. Litigation are of harbor statements Private the Reform forward-looking pursuant safe to provisions These Act of

further company's factors results, the Forms XX-K quarterly information affect on For future XX-Q. Horizon's reports that filed please recent most could the and annual and see about

any in they by were statements Horizon date speak should keep forward-looking the which You only on mind that made as of made.

Wednesday published will website it be also found how that Dwight; predict after they today the at morning. on horizonbank.com. up from affect addressed time information news is time, release, Horizon's these and is events has Horizon presentation this an is non-GAAP risks CEO, this Representing cannot or extent afternoon, to update well discussed April Horizon available and as date company's the with uncertainties as President, Craig which President and in available on come on Neff; be Horizon which call, company. statements Dennis Mr. to Secor; and or Chief comparable CFO, Executive and Vice made. and like Officer, the time, New Executive in Kuhn. the website Vice to revise does To may Commercial intend and the measures Chairman Banking measures are to duty are forward-looking XX this financial management on I GAAP conference its over Mark and At no not and they would Jim turn President to Dwight. can investor reconciliations

Craig Dwight

Horizon Bancorp's thank and morning, for earnings good in and participating Kate, you, Thank conference call. you

that trading July will XX. on close after today the published follow was Our our investor presentation comments of

and as was and share. by record and quarter's by management expense Slide X% highlight per evidenced X%, earnings first growth and these X. a a These times, loan unprecedented We deposit believe supported residential good results So starting solid loan increase respectively, XX.X% the quarter excellent mortgage on over during very of we volume. what summarize were

we markets cash of our capital to considerable subordinated capital quarter, addition, holding capital shareholders debentures. provides demonstrated ability the its access X issuance the the the our titled future. optionality and provided to with the with effectively In us dividend company raise the during how common $XX protect to million on This in cushion in Team. Seasoned a to deploy Slide Management through

time Slide years. Diversified We to proud are our financial X our on very & next and titled entire little and history Bank performance more accomplishments Slide Footprint. accomplished. X what Attractive I'm Horizon the XX time past of the slides team of understanding excellent a do in so of going they've varying we economic reflects over spend our period have taking consistent business. place footprint over four to risk the stabilizes revenue streams, been a cycles. you grow of better which diversifies long in Horizon's a markets has what's focus and and two earnings

great business footprint very states to example, Michigan, our Indiana reflects diversity. are Horizon's a loans Horizon the locations. the For throughout represents mortgage doing XX well, left The good geographic of with slow offset today, map other growth in which has which lines. our distributed teams and

traditionally governmental state more to or growth or Indiana's Horizon's county universities primarily while that expansion The state. of seen seats. Currently, with and current since substantial a and a peak considerable Indiana and Michigan. May. and week, majority areas Indiana's July unemployment in and stable decline. counties XX, patient in April than is we've approximately COVID-XX Indiana peaked start claims number cities the on decline. in economic continue of we're positive in over April our occurring slight cases base COVID-XX unemployment on Michigan, Michigan XX% Both June a has And units status hospitalization XX, cases now to rate Therefore, towns you and footprint in peak of give was is of the XX%, drop decline their of past Michigan's and April. saw then states below claims its by in COVID-XX approximately increase other an from was unemployment XX colleges utilization to COVID XX%. and the has of in an rates rate a Indiana's rates care Currently, As experiencing in X cases. reporting with increase a intensive again is

portion are the western they down are and and May. total in are Bank's peak Michigan. cases considerably recent of in the more confirmed Horizon branches while area However, concentrated and Overall, the in and populous from April central Detroit state, periods the customers in metro the southeast state's concentrated

markets. As and preselect on mixture universities include a know, cities number classes roommate. as shorter standards plan and focus and through footprint we've and semesters, Indiana about Most multifamily in occupancies Michigan we universities for attractive has fall requiring well which X safety many college housing. located single classroom a fewer Slide Horizon's in in customers All with XX of grown college fall Horizon's midsized of you the new bode acquisitions. towns. unless and expansions loans our student organic you are certain The a under requiring bank both college mergers talks near our will in occupancy occupancy protocols been and of stable XX student major campuses. virtual open housing Midwest in to

have to We be Chicago bank. plans a no

and living, However, we do cost businesses of dense escaping high the consumers and taxes enjoy benefits of population. higher its

the in been is historically growth slow market have has legacy a share, we market market. Michigan approximately where XX% area, Porte City, La Our

by market with area Chicago employers, impending is including commuter line, times XXX as and strong positioned growth. systems. commute has short well appeal considerable for economy Metra residents large universities. school Indiana The due Chicago proximity investments several government state and this close its quality However, as well future companies, with Fortune growth, with in has to Northwest the rail recent well-diversified Indianapolis a greater companies

not less considerable has area good automotive Southwest state. Michigan college excellent the wealth. several the and This other is parts an business volatile owner also towns. as influence have operators, of as They includes climate, personal

Finally, greater life University, and established improvements. has local area, the for freshmen of of enrollment recently with Lafayette partnerships infrastructure Purdue the record announced quality XXXX. incredible cities of Purdue home for fall

to Just this last jobs its Horizon's plant, COVID-XX major assembly a X to add ground exhibits market. week, broke Subaru U.S. XXX expansion only which response of pandemic. in plans the Slide

very and on Users, as its XX the digital or titled talks how through transformation. communities chart more evidenced transforming Horizon on our and our all to Online Bank community our way times. of employees base XX% to of left As Bank Horizon users. pandemic XX,XXX our provided these unique well checking than most Active about as was Slide and customer our accounts customers of digital banks, assistance proud active is this the platform, managed are through our they've during by

Horizon's As declined increased to expected branch during this traffic due limiting pandemic appointment-only transactions the and to until office presented digital on transactions to XX. the and right, chart June

well was digital for Horizon transactions. Fortunately, in increase prepared this

it's the will our over Mark Secor, update. privilege you financial to Now to it Mark? give CFO, who my turn

Mark Secor

are believe I briefly summarize the results, environment. navigate with continues Craig. in current Starting we the will as strong we position you, to which we quarter Slide demonstrate the Thank second XX.

allowance built January quarter, increase pandemic-driven in reserves first that results recall days early we the of nearly emergency. the in and reflected X after Xx our economic a our CECL will You implemented on the general in

our year. provide the the for but believe We continue first of appropriately given and second portfolio at modeling. to are the rate than We CECL in three growing the reserved months state in our reserves of quarter a current slower we

margin during X earnings, PPP of Slide interest assets of to program X to Our profitability including by quarter basis income decline participation. was X growth from lower-yielding points with points the benefited metrics, interest modest quarter. the the also supported in approximately Linked-quarter basis loans. outpace of net growth in pretax allowed net point compression from income average resulting attributed higher relatively the pre-provision margin X% us PPP balances interest-earning interest basis during net XX;

points. proceeds loan stimulus we In margin other and low X the sold basis funds, impacting addition, excess deposited rates, by approximately at cash as customers very PPP

March XX% majority with not are and at adjust not variable repriced. floors. of variable floor. over rate X% -- XX% with the their mortgages XX% time. of XX; yields this loans the loans their floors, repriced pace loans basis them commercial longer loan and points XX% Our at have commercial of lower. costs their rate are our of variable ability of have variable since approximately period PPP loans us of as to reduction. helped quickly during quarter decisively our asset Slide keep yields. has and reduced XX were variable mortgage at lower floor our funding XX% are XX% and vast a lower of floors contributed rate loans are

to in XX in impairment business. The with of next fees $XX valuation also downside, support requiring the rate past factor to to continued in prepayment due yield in the is continue lowered offset $X.X new The entire X.XX%. and the cost portfolio XX; us of noninterest-bearing and quarter the asset funding, significant is to the reprice the of at with pressure, the lower To in expected. the deposits weighted XX% income balances matured CDs CDs our shift deposits helped in third-party contributed the an just the to bolstered XX; CD product to expected over stabilizing portfolio originated of were CD reduce a million Slide mature with and two accounts costs the deposits repricing two a our will deposit the strong second asset are Horizon's drivers during core to rate noninterest-bearing the XX% margin. margin further provide on expected during the mortgage second the Slide noncash funding to asset, interest-bearing of high-cost the basis as rates, quarter. -- duration yield should transactional As of moves. in both were volatile downward national servicing average related over key To noninterest a quarter, a CD weighted XX quarters, customer The of by charge mortgage of X.XX%. biggest quarter. of average is stimulus pressure increases loans levels additional to and CD -- million growth accrue rate points second provide portfolio significantly months the

be sale line impairment fees expected national the quarter, with top refinancing mortgage-related mortgage refinance the increase. income. mortgage that and national fees of loans. to local record if on from from mortgages in gains second the fund percentages receiving are impairment and the through percentage activity, nonsufficient end lower strong we Even MSR on for offset delinquency the Additional expect providing loans we continued and strong and and activity year. the the lower The prepayment help grew of would service sale of on to contributions is gain fiduciary revenue Based continue business this refinancing revenues

due we the in continued of to cost During loans discipline. to strong XX.X% efficiency expense manage quarter. revenue of average core lower the salaries originated and company. quarter, the the deferred quarters the X.XX% quarter. benefits, noninterest expenses with operating back for origination second environment of $X.X was higher to both million lower ratio and in this adding annualized trend still and our expenses demonstrates -- second than PPP Even assets in usual a the very was the second This is positive The results previous during two

to our our expense control relevant we leveraging retail we cuts conditions reserve believe discussed January X, on and to ongoing infrastructure. the as by on on CECL portfolios. We of Slide current this locations, we looking XX; make current focus is spending and did for quarter, rationalization last adopt will the more impacting us discretionary based builds allowing loan continue economic

uncertainties million volatility of added more dividend economic even allowance the was risk driven the in The from later to loss. economy to continuing the presentation. to the prepared had these XX, extreme. -- a remains debt the million loans to for X.XX% by through loans would continues still a Accordingly, ahead. XX in build excluding forecast that This loans. support seeing million $X.X and primarily details the during the assist reserve sectors Management million in during Horizon downturn. discounts rate analyze This holding months economic to be company to sectors in at million will better at to indicators X.XX% to diligent determine Craig over of in from debt capital these higher $XXX in a capital XX PPP scenarios. XX; second issued and have what $XX provide the just in The to the quarter, add $XX facing allocations of holding as operating include capital level, to company the This the which in ensure Also was bank on potentially to the made expenses company subordinated to strong of or taken percentage To committed loans. of capital holding cash, to X.XXX%. of we economy. need company action weekly quarter, in on the out to capital are the provide costs, which position, has and Horizon when capturing the loans order quarter on we in quarters times. current quarter, optionality maintain stress are our debt, second in plans total performing the we representing done shareholder be acquired maintaining. been A these of $XX.X was nearly range testing additional of for Slide June fixed maintains at at a scenarios adequate all raise this provided interest uncertain is balance we June mild navigate a position in dividend

it for our back additional some loan to turn Craig. comments Now on I'll portfolio, over

Craig Dwight

in you, Thank in a you'll managing our provides it This which diversified XX, mortgage looking like in net loans. billion credit our in consumer itself We granularity also Slide total diversified. as advantages our at portfolio, XX% slide and loan details loans And with see commercial mix portfolio XX% well $X risk this and commercial loans margin. interest diversifies to residential, is on Mark. and

Our manages of in-house largest limit risk and legal an our loans maintaining and limit well. the total million. is $XX at lending X% at $XX this continues loans, to Horizon sector capital key make; single multifamily residential less perform than points portfolio Other is of legal by million to

granularity commercial is loan average further Our fact $XXX,XXX. is our enhanced by only the

Slide peaked and mid-May end, overall, were line off. to in with peer in deferral started have moving are to level XX.X% Now XX. and quarter loans Loan Total banks. deferred Horizon's deferrals at rates

X.X%. deferrals are decline starting indirect X.X%. Consumer XX% to to Horizon which rates approximately with May by average, rate consumer seeing national deferral loan monthly loan well deferral loan of is deferrals, loan reported between payments. fall decline consumer commercial XX a at we Horizon's Horizon's for below Analytics portfolio. deferrals report are mortgage a deferrals in loan continues of commercial a X.X% of auto period the mortgage in with and days to payment the over Next, the or loan deferral to segment. compare deferrals total XX, on and exception which rates X.X% deferral running loans consumer of well loans interest of loans commercial loans make the were payment up range consumer Moody's as XX% our Horizon's XX% continue Horizon's make of total of less. deferral.

loans has commence sector. loans six XX in $XXX Horizon million, deferrals only their regular of these of four We between in these most with the commercial the and third expect payments quarter. months; payment most for are hotel to

Next, Slide discussed. was XX participant about very protection $XX.X our already talks were with total has a million Mark program. fees our in million, Horizon PPP payroll which loans $XXX and active

history long seasoned loan Moving a of a and underwriters team to consumer XX; Slide has underwriting. of Horizon consumer prudent

with by Our collateral some consumer XX.X% of market. loans loan and secured the vast made backed in of is type, of are consumer predominantly our credit, portfolio our majority loans

FICO and indirect consumer days mix auto scores, has by basis with due loan nonperforming consists consumer in loan XX total at and basis term as XX XX past consumer and portfolio lower credit evidenced The or equity market XX% loans. points high quality at more HELOCs points XX% excellent loans. delinquency home all Our loans of low of

low Next, time. for sold portfolio. a market the of our quarter due total basis and a running of XX business loan past evidenced with mortgage loan at production. in secondary underwriters, long days of mortgage or delinquency mortgage quality Horizon is by team of on prime points. end, originators. mortgage XX XX% more loan at our strong been seasoned majority as production processors with sales year-to-date We've mortgage The Horizon's loans has at remained

to lineup about portfolio. traditional lenders Next, and loan XX standard commercial is administration offering of regional commercial diversified our talk to your of Slide a an experienced Horizon team bank and credit products seasoned staff.

a history have We loan underwriting. prudent culture of commercial and

the commercial nonperforming on XX. owners points recourse the XX at of and loans. quality represent commercial require quarter lenders, basis in-market from asset over primarily with points XX of quarter end loans Commercial our metrics basis favorable end total loans This to are We of increase does continue be at business. at an most March

sector are XX% business, portfolio restaurants, nonessential of the from to businesses XX%. payment sector. nonessential The of tenants the with modified made Most businesses. rates that of All million ag highest monitoring. bulk for Commercial ag guarantee increase. leisure end primarily We ranging estate well This had high XX non-accrual, During open monitoring backed government quarter, the loans and or hospitality. as who hotel of deferrals. contributed do points. by segments are delinquency or the to in this loan the portfolio farmland. credit X in elevated anticipate very is the were we $XXX non-owner Slide of elevated loans talks sectors with is one low those loans was our partially a credit have Hotel this about evidenced any loss. occupied We in real at that go by which modifications percentage duress include payment and not are occupancy XX% with hotels, had retail, with quarter deferrals escalated to a most basis monitoring by exhibit categories secured

occupancy in are we Majority our see monthly The rates. major have this comfort which than highways areas. interstate faster We improvement in hotel of located continue located to rebounded resort near or metropolitan loans hotels new communities, through our norm have for have resources have multiple and portfolio to the liquid hotel long-time is to they're back upon, with fall that managed operators, economic operations. cycles, borrowers are most adopting

loans. restaurant our Next,

debt. We has have outstandings assets, is consists in amortization of this restaurants. a the $XX operator of $XX One strong full-service with million very short-term estate who million on portion over of liquid in relationship their $XX considerable million very real and

consist and long-time year-to-date limited Our Most with their operators. Burger which XX% revenues $XX.X breakeven point. Culver's restaurants are food them historical as owner Fast are King to million. service and totaled close McDonald's, such good XX%, of and between franchises down places

However, to service some our over by entities and be overhead performance contacts increase of in Early struggling lower cash operators to the and tenants non-resort are limited able restaurants maintain actually in in-dining the most. good revenue. prior The portfolio carryout profits due to full-service reporting indicate drive-through an net good year restaurants. combination smaller the flow appear customer with service. independent were And limited and this

Our that average portfolio comfort the fact in at is amount the $XXX,XXX. loan is to low this due

and franchises. year-to-date good good have We long-time with owner operators performance

occupied is stable non-owner up space. this that due feedback Early borrower retail strong is sponsors. Next to portfolio well is and markets holding

future low this loan In portfolio Horizon against any potential does average provide of loss. the addition, cushion valuation to

due is sponsors, markets. have Our loan low the comfort in fact loan portfolio we loan-to-value good and ratios amount, stable diverse low and average this to

All segment we bowling borrowers, seen the are movie courses, borrowers. general, This including group the exception tenants. had a and and of customer of theater, cooperative a entities, In hospitality. and industry strong establishments golf diverse increasing centers, open with have zoo. of and movie leisure Next, consists theater

restrictions. in and in we continue the future additional increase portfolio add need allocation However, if if states challenges this the COVID-XX may COVID-related to

to strong can four the to Horizon's of continues Slide report And stress XX. metrics you key charts. the conclusion, which in Even COVID-XX, asset second highlights. these see on finally, Horizon quality quarter, Moving in with then

through We multiple have credit a seasoned culture. managed management strong team has cycles, who economic

run We're finally, not the shareholders' holding cash rate Recession, geographic and management even is the during good holding Great well Horizon, company, and conservative do paying aligned historical fact capitalized, have earnings a our interest. requirements dividends. We stake not the at since that diversification. executive with holding if a plus cost ownership company's common exceed we considerable policy has bonuses in have XXXX Management earnings fixed of X.Xx

shareholders' with aligned our are presentation. concludes That interest. We and comments

for We questions. are now you. Thank open

Operator

Terry [Operator of first is McEvoy Instructions] from The Stephens. question

Terry McEvoy

Craig, a A of Just, understand lot quarter. the the of I second days them to comments I them and were deferrals. occurred sure make your want XX lot on in payment

that normal it most So really the you're Was their in June will takeaway getting the that of or portfolio? of the message the XX here data. show deferrals these at? schedules up saying didn't outside payment Were resume hotel you

Craig Dwight

to a part four until the so comment. were of and they roll not off Yes, fair third months, quarter. the The reason quarter, the that's end six for fourth for they will hotel, first the extended really of

would be So the correct that comment.

Terry McEvoy

Mark, maybe question And then, for you. Okay. a

And the program, will of PPP of end thinking think period for the about kind loans forgivable you most period? On by do the you this are go year? what that through forgiveness of those

Mark Secor

through Yes. We will forgiven to the are be be ones think that going of the year. end the that

quarter, Some first quickly depending through. into follows how the the on might circle participant just

Operator

Long The is from James. question of Raymond next David

David Long

the PPP when the deposit I wanted of sheet. ask in But the helped of size growth excess of about the Obviously, you pretty the nicely. program the look deposit even your to balance strong. guess, with expectations, that? the deposit what couple Or growth very base over that I Is was PPP, you the the deposit are -- maintain quarters? of here can next overall, your

Mark Secor

deposit think gets recessions, the balances the you last as grow other I During do see held. recession, cash

So deposit reflecting expect balances to maintaining. history, we on previous back could see

funds to Now that you some getting they be over these those used are been have expect also. time benefiting stimulus. would And from

customers. to the been come happen -- balances. would the from we're to able So would of that's I used what money we But not will based be stimulus maintain deposit sure will and how the I just guess much answer the on history, think given be, be that

David Long

program. my for marketplace. again just Sure, to relative loan home how a your got get you But for the the point? it. of could And sense And that this market about your said, being amongst sentiment in at your better your here the growth outside once PPP of compared reminder obviously, the on borrowers -- commercial expectations is attractiveness Chicago, to thank I want

Craig Dwight

you Do Dennis answer to Kuhn? want that,

Dennis Kuhn

The was related that the were outside slightly probably from line most funds to the of a down PPP of overall. lack growth, related paydowns for it's -- Sure. -- lines part. of obviously But PPP, usage of year-to-date. loan -- actually very to been we and Much so modest standpoint

We are out of our seeing point. But at with some to activity not front continued returned additional have restrictions, lenders the regularly. this being the norm in of clients

it's group be we guess, think our And peer we tepid, year. going balance as pretty we've I of the seen well. over to that much I would across So say, the think that

Craig Dwight

our somewhat their underwriting David, we mortgages. on estate, real for tightened Mae of underwriting etcetera. tightened standards has kind downpayments And requiring Fannie more standards,

it's growth for So standards, expect while. just not tighter a because would I

Operator

The of Nathan question Piper from next Race is Sandler.

Nathan Race

forward to Just impact accretion. isolate going of the going exclude about I'm loans or trying and along thinking the the core impact margin the forward, of outlook going lines the question, last PPP

it's I we core indicated back a at like add if think PPP X.XX%. basis as the release, in the margin impact, points, the from maybe X

deposit So be elevated it near liquidity levels sounds excess and term. somewhat may like levels

with at of like trying you about think sounds those to loans costs, ongoing good X. funding a then And chunk leverage. just so dynamics it And got

get to margin thinking what point. trying So just at this into about XQ the core you're

Mark Secor

have reprice to CD year, going the million yet impact still this the pretty deposit due that's to Nate, think significant on that portfolio, the costs. seeing what a with $XXX ability I what coming we've -- is we're good happening

challenge the be to going they're to out, that's increase to the pressure. So asset help come going When The able you just PPP loans lower that's asset to like margins. to manage yield the help to going because said, be yielding. is offset

We will you in are we're lower yields income just most as would going of to investment with, portfolio we excess which to liquidity, do and the a be something going be at generate to lot likely the have need. have to indicated, that

able challenge is to incremental net the to So, what the but margin, I maintain investment will the be think it interest being be probably income. growth portfolio will to

Nathan Race

got Okay, it.

bit Mark. just relative given of So right, of yield rates portfolio securities' you I'm dynamic if maybe little pressure a near-term the additional to reinvestment hearing the

Mark Secor

Yes.

Craig Dwight

XXXX. all probably That's

Mark Secor

Yes.

Nathan Race

Okay, just would really quarter. got The third into And then down came obviously strong it. seem. little bit, on banking, this thinking quarter. the a Mortgage about gears the it gain sale changing margin income and

kind takes run are within puts to that So the as XQ of looking had kind guys income fee rate, curious I'm you in the the obviously, and we then just a MSR and on of out adjustment the quarter. ex

Mark Secor

their in warehousing Yes. refinancing both to gain We're as the asked gain servicing the for warehousing the see MSR strong continuing mortgage larger activity, to which limits be but the -- and is very be continuing benefiting also the balances, to those to is side line, business line able continuing for maintain see refinance activity.

stays rates at although With on yet gain especially the to slow coming it's to to this, of in we treasury as quarter if close lot a refinance down at. and where activity in room some area what depend going could do. it's through bring of the some X%, there's fourth, the the percentages, to the driving into third refinancing see So the rate

continue first see the down quarter rates the next you to of come we as volume So could fourth if get and year. into

Operator

is Damon [Operator Instructions] of The next question from DelMonte KBW.

Damon DelMonte

So the had costs comp mentioned know question, directed related PPP. my to on first probably I deferred expenses. outlook for some you had Mark that to you

of So half forward, going expense the base normalize overall for run the as at year? that we how are try the rate back looking you to

Mark Secor

but we costs deferred fairly had origination stable. benefited Obviously, overall, had that higher it's think the we loan costs. also I

And some of the -- or yes, loan origination cost.

start costs later and and into out the collection next Some to see year, in we increasing get of downturn year coming loan you're of the as this isn't. who I who's determine going though, to into costs as think we

level that are, The might at have start accruing increase in than the we we more bonuses if to that continue for half year. need is of we other what to area will some the first we have operate the

would increase. see could So I that we be the one think some area that

Damon DelMonte

XX, the say below amount, to then XX.X that So to you a dollar range on reasonable? that's is would like something close XX

Mark Secor

sure that state can I'm not that. we

Damon DelMonte

looks Okay. quarter. follow-up, loans about I And All and fair as up uptick? led guess like went to during enough. what there a talk that my it about right, you little the bit just Can -- the nonperforming little a migration

Dennis Kuhn

Sure.

year, seen uptick. two side. Over on as of other, the have industry; the the first the mentioned the And was one, service. to an commercial credits, unrelated earlier, it specific was Craig half related It ag industries: we

But two overall they were we an we but don't so of identified additional saw isolated portfolio, previously have instances some the although bank health been believe And the had it's COVID deterioration. again, that going of the impacting forward. indication by obviously

Damon DelMonte

it. Got

helpful. that's Okay,

Craig Dwight

to add to quarter, just reaffirmed non-accrual, had In one payments more mortgages us. three and we the which of have jumbo has large sold with two fourth properties the comment to David, X that.

and -- continuation. would the so So show that

So it's commercial. not just all

Operator

Martin from is question next The Brian Janney of Montgomery.

Brian Martin

the going so But you're core of I kind late, just how go and about joined rate that the could just just you're give any on the here you you kind apologize. direction with ex margin accretion thinking directionally bit most PPP, comments margin forward I Mark, as the the call forward? the impact about just of Fed or the a thinking now core cuts environment, how from so of of

Mark Secor

on The going to the to going primarily to side. the pressure portfolio, probably have going we liquidity, be then commercial PPP, most have most the fourth quarter be since Yes. in more with and that the couple yields, the asset see yield pressure the that our so of loan core -- think CD there. asset side loan we've to will to some specifically, going just we Brian, loans will come The first in do the next margin repriced seen the income help of the out into something noise, -- variable as rate of we in side. the that's pressure deposit think the the into there's on -- that and quarter. ability and yields will may And quarters reprice that I some the the in likely the -- loan obviously, second area we portfolio the offset core investment through already know, the much have quarter

Operator

back like are I There session. our questions. no concludes closing Mr. for Dwight to remarks. turn conference to would additional This over the question-and-answer

Craig Dwight

for I'd and future without look conference to talking those the Thank soon That today's conference. Bye second great to have now. we And our to thank all day. a COVID-XX. like in to in quarter concludes you, forward calling near call. you

Operator

The conference you Thank for has now concluded. today's attending presentation.

may You now disconnect.

Horizon Bancorp (HBNC) 2 Aug 202020 Q2 Earnings call transcript