HBNC - Earnings call transcript Q1 2021

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Operator

Good morning, everyone, and welcome to the Horizon Bancorp Conference Call to discuss financial results for the three months ended March 31, 2021. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

Before turning the call over to management, please remember that today's call may contain statements that are forward-looking in nature. the to results and those to those noted subject could factors discussed, are factors actual cause differ in statements risks, other uncertainties that including These presentation. slide materially from

is factors about and actual differ current could Additional contained information Horizon's that in filings. results cause to materially later XX-K

company Representing refer to certain contained financial by understand for of Horizon any yesterday, measures are measures Executive the Kuhn, and are President supplemental business. Vice Horizon’s addition, and made Executive I'd to like www.horizonbank.com. call. Horizon Horizon's are intended In and Secor. to during and Officer, Reconciliations Executive by Commercial can presentation it today Officer, obligation to press the not If Dennis At Craig management Chairman that and the Dwight; will assumes Banking presentation. forward-looking statements at the Chief CEO, anyone The in issued release for over may copy Chief update already Financial this investors non-GAAP call no to They Vice and help the turn a have these time, question-and-answer you Chief does access President session. Dwight. Mark company's Chairman Craig joined the be website, Officer,

Craig Dwight

and for Thank participating earnings in good you Debbie morning. Thank quarter’s you, call. Horizon Bancorp's conference first

investor modest quality improvements quarter costs X.X%. return the were total equity in Horizon reductions April in as yesterday, continued the in published will deposit by profitability Key for XX. Slide we $X today first the of completed highlights key evidenced provision presentation assets quarter on further X, strong X.X% of on and comments average company asset follow expense, with average good metrics. Our expense control, assets, and return billion Starting over drivers on

with our of and talented markets. to attractive positioned we opportunities the significant strategic Horizon capitalize organic on sheet, and highly operations workforce, balance efficient is growth Given size our believe well Midwestern

acquisitions time completed expansions on this during new As you mergers organic we've Slide market X, period. see XX and and XX

pickup and for successful X Slide XX% to With related that Indiana the goals. look company a interest and and XX% track opportunities are a approximately rates in organic other environment, as clearly growth the long-term Horizon’s and grew low on with our acquisitions. X%, mergers operating acquisition the move achieving loans. the banks growth merger XXXX, discussions. and outpacing and seeing sheet We’re record pressures to succession in and we’re we adjacent record meaningfully through PPP our and Michigan excluding well consolidator include markets. track In our demonstrates current balanced continue the proven for GDP industry new established and They by in planning, achieving challenging facing balance Horizon,

recover. volume the On expectations record fall, that through expansion in As acquisitions and continuing growth Michigan. late relatively compared government XXXX with continues we've prior-year our activity Slide and majority pleased quarter. full-year you we’re organic historically in Indiana to has off very merger the shared that will remain of primarily year and more been county lightest with that a of university to last XXXX we areas economy lending, or and is towns has other is during for seasonally our economic you Therefore state as the mortgage residential first than and our seats. income with stable since opportunities total XXXX starting an Horizon’s colleges footprint stable fee base Coming what and a and traditionally for has significant growth remind and occurred X, the assets in

the well economy. footprint consumers in from distribution, unemployment growing the logistics and outbound customer and businesses by migration increase recovering In take of lines investments loans of and to the of Both of improving also to we’re living. Michigan to coupled space, plant and exit Michigan leads from as credit, taxes reductions as Illinois, and Indiana disposition businesses advantage and high unfunded and equipment, Indiana Horizon with which serving continues approved in is infrastructure markets and demand positioned high commercial dense addition, show financing to living our cost continue evidenced anticipate other and in pipeline us of and economies in rates. improving communities needs

of considerable XXst unemployment March, a credit of XX% in nationwide below Indiana's well well rate for to Rapids rate was from diverse risk regions Michigan's loans of Many are markets unemployment the Western Slide and of including X.X% highlights rate the unemployment State Arbor, X.X% XX% the unemployment where in time national reporting even the rate Indiana, for Horizon’s of December will improved of Ann parts in rate which and levels taking we’re the Michigan. As U.S. while Central and give opportunities X% economic the disperse Horizon’s we footprint growth. was lower helps primary Grand exciting overall Lansing Michigan of decrease all the X.X%, some with below period. in our X.X%. geographically X%, believe in we engaged X.X% in of in place X serve events of same

digital transactions monthly away transformation, branches virtual have and from average to our Moving Horizon’s onto channels. digital shifted

our transactions counts first accounts have we the XX% XX% place As of digital stable. in walking users month, through in XXXX, year-end. and and digital took lobbies increased March last active in remained the online checking XX% channels for transaction quarter, to all XXXX our banking XX% from of for Since traffic compared of reopened all at

Horizon digital made was our technology over the for increase investments well years, result prior a in As activity. of in prepared this banking

over Secor. for Executive and Mark update, to Now President me it our Financial financial Chief turn the Vice let Mark? Officer

Mark Secor

quarter compared with that impacted us from record income average purchase these company's of from declined lending. the might quarter become forgiven, activities levels strong at Craig. first quarter XXXX, income to in Starting the realize accounting core mortgage quarter primarily mortgage of reduction demonstrated supported we recorded quarter income, opportunities reflected end to Slide by fourth stable available first recorded income Non-interest earnings, see lower results lower results results XX, attributed we on strong for XXXX. Horizon’s warehouse PPP first you, Several earnings. fewer nonetheless in loans which to in and loans during a Thank results ability were our first recovering economy. the the operating the gain sale historic the positioning

credit strong continued expense First to quarter performance charge-offs. in lower benefited credit low due results from

recovering state our XX and portfolio, XX, margin decrease points quarter. given by Government the the reserved basis deferred were from modeling. stimulus in of point We as in our the recognized economy, basis continue additional to believe during current we’re appropriately CECL Slide fourth quarter adjusted impact XX the the points fees PPP of for loan the forgiveness. XX was positive net the positively income to basis This impacted compares the

liquidity the basis compressed seven quarter. In to the additional an compared basis fourth in addition, points XX points margin excess

future continuing the liquidity margin competitive We invest reinvestment. lower expected also we continue adequate saw will maximizing as by net income funding see with pricing. while investment cash impact more interest demand loan negatively portfolio excess on and to rates creating well we to and to continue focus increasing as the loan flows on was for This the as

the income the from positively fourth in loan Moving during fee quarter loan in to basis recognized Slide contributed lending was and lower six lower loan fees of PPP a loan first yield, quarter to adding accounting the income loans negatively and the also the to XX, mix loan has compared to impacted yields. the points in Lower points the pressure decrease yield purchase with on positive quarter. mortgage XX the the change fourth the impacted yield pricing to in basis recognized the compared first also quarter in warehouse

primary to expenses Slide though we from the of point in XXXX $XXX cost in on and basis mortgage We're to manage we local to the growth commitment in is with CD term sources. drop costs funding mortgage activity, during decrease our strategically liquidity transactional and and tempered pricing XX, for inflows quarter. first non-interest in on also XXXX, Indiana points portfolio deposit total pricing bearing levels to product as based gain continue to income impairment funding fourth percentage funding asset improvement production of pressure loans margin compression valuable reprice strong realized. mortgage as contributions deposits the decreased salary Based our Slide we or X% stand additional in resulting in pressure basis benefits to bearing deposits lower continue charges our quarter the during standing is quarter, as interest the of also contributors core year. deposits non-interest margin lower national to XXXX high opportunities first rates, of see costs to The top started an and XX from at quarter. Michigan. revenue point This customer downward operating basis As the are in performance the level by X which transit will also funding from we are long cost and mature and more non-interest reflect continued The income balanced yield is and line support The on continue the cost historic in XX, CDs the deposit saw quarter. as average gains high million opportunities matured mortgage contributed and non-cash our markets related Horizon’s reduce one growth sale new of refinancing additional funds. lower costs of originated income at the during saw and was expect in in continued business from high some recovery XX, the potential expected our for to against our strong franchise. compensation. continued last accruals during new relationships costs, cost costs, and normalized Slide first by reduced reflected quarter, course, not

first fourth second accruals given pandemic. we year, in for of uncertainty nominal recall, the outset quarter. the bonus you the accrual at the may As a record in we of results XXXX, and rebounded Ultimately, quarters bonus the is with record catching-up the

expense we compensation evenly based be expect year. throughout to XXXX, more the performance For distributed

channels manage digital changed more rationalization as that may of being opportunities we are company properly continue successful We might to planned action review being branch Any our the all for ensure to be other have with capacity execution. reviewed used. along habits have the customer potential as is for teams

record quarter first our portfolios. a remote this for quarter as capital in allocations We banking the we’re remains quarters from stable and of $XX.X reserve we losses our continue well already X.XX% balance retail and the loss look maximizing allowance the exclude economic acquired and X.XX% credit, liquidity these was at loans and higher of Overall, franchise, ahead, due the potentially and in our made our perspective ahead. first of The characteristics XX centers. total Slide to we loans to of further sectors believe discounts mobile our credit results investments very our PPP when to as in primarily pleased with with March further driven you environment. leveraging while we’re risk nature to financial efficiency XX, trends, refining and of operating model improve a have performance or was loans, well intend loans. the scalability digital, percentage million for by on forward improving Looking with of in the $XXX,XXX built to to call for positioned

For to it portfolios, over loan the I'm back turn to some comments additional Craig. on going

Craig Dwight

Mark. you, Thank

provides managing Horizon’s well like commercial provides our well. granularity housing on capital in risk single Other itself XX% on as key mix segment at manages million. the which loan diversified, limit largest at loans Horizon’s multifamily our margin. residential points our of is continues interest this the and Slide by net lending XX, The chart of loans. approximately within in lending with is $XX at legal to to mortgage limit maintaining our sector profile, and to it Horizon risk are Horizon, loans credit in perform and in-house X% $X.X is we which risk commercial total total consumer diversifies million billion loans below our residential $XX Looking At right and XX% at and well table this in the advantages an well portfolio, diversified loan

by the enhanced $XXX,XXX, loans. loan granularity is commercial further less Our average that than PPP Horizon’s excluding fact is

Horizon’s during X% construction or deferrals we expect less and stages the and XX As modified Horizon’s of include loans remodeling mortgage deferred one payment loan two total will three team and restaurant. with payments in loan our The they remain is decline of payment. strong loans of principal with has in from of principal or of and on March loans. of commercial dollars commercial from to same than consumer in in traditional various deferral their meeting commercial making deferrals XX principal credit resume scheduled sponsor total of an resume and payments to staff. loan hotels are and and are at three March XX, interest restaurant down update sponsors, loan standard with of number in The seasoned loans of two with financial are through as quarter. plans the regularly hotels, total products to or only of business full XX. the low totaled Horizon been expected and deferrals lineup loan X% second team second only bank year-end loans XX% continued the the to our Total is X.X% lending quarter. diligent sponsor, a a a strong administration The payments loans Of only portfolio. liquid place lenders the loans commercial full commercial on and of total customers back to making regional The experienced interest is primarily interest. deferral,

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

in an loans principal from most require primarily business owners. of lender We’re our the on recourse market

points. declined its metrics portfolio quarter-end, to made end commercial hotels, in hotels, monitoring basis a secured year-end. to that down first include elevated retail, of the quality at addition, majority the of from hospitality. exhibits restaurants, Slide quarter, XX with occupied total continue at those non-owner over and In non-performing to asset in XX to hotels. higher Horizon’s to non-essential that see XX, remain the payment considerable low of The points loans loans you'll payment with Commercial basis the segments past commercial deferrals loans favorable of Horizon XX were businesses basis we points commercial At and be loans seen continue loan delinquency continues first quarter by segments other year. the continue Horizon’s the locations deferrals improvement. leisure and monitor On map at

XX% we portfolio located are be Interstate the highest first percentage of located along down in of any sector As Hotel or financed you at see, located can XX% along in of room hotels decline the a March hotels total as community. an from those the a daily are hotel the vast Metropolitan than during resort average and of that faster to Hotels continue payment quarter. Highway is rates year-end. improvement occupancy This areas. Highways to the rebounding majority Interstate loan at due XX, considerable modifications

on non-performing sponsors rates from of property continue utilization considerable the benefited improvements service with of hotel portfolio considerably Basketball Overall, the the average quarter bridge were improving All in rates The reported March strong Credit College Indianapolis occupancy than occupancy the our to portfolio we entertainment borrowers. to low to and occupancy improved quarter wave hotels expand well most the the running of net quarters five and nationwide. at provision our reduction and quarter, sectors occupied result by Protection to Program the capitalize and points total of COVID-XX to in XXXX last the loan rates of historical sector results this and retail report is improved a the in Horizon’s as starting basis are the first lower points. metrics quarter, at allocation and first as open with asset non-owner low XX. basis smart which quality a the average XX% our manageable for the business, strong Horizon the for exhibiting restaurant of services. a to loans and second we second in financial total at XXX. to of charge-offs the highway the Paycheck rates total to Indianapolis Specifically, from declined ratio XX five charge-offs NCAA year-end end low occupancy the loan expect in Tournament, improved second at first venues month from due less March of result December improve econometrics, to the due at increased continues consecutive travel low XX%. expense loans to improvement for reopen loss quarter the

the second continue loans to We in reduce to expect quarter. non-performing

delivering the credit loans, CECL. of exclude credit and loss adopted Bancorp’s banks growth loans and exceeding for through has the to is Horizon for and with allowance sheet, well of banking we’re To key industry's growth Our loss seasoned cash we excess credit culture, managed total with par deploy line team and robust is through summarize, acquisition. geographic a community have quality company holding Excellent an PPP a rates. or said outlook to cycles average a allowance cash economic multiple of position, which the If strong total merger has X.XX%. X.XX% capital loans, history diversification, improving that diversified who management balance highlights, other capital was in high

of years last Solid dividend today's first common run quarter. increase This stock presentation. paid dividends rate, for concludes and historical earnings quarter earnings a uninterrupted on XX

for questions, now So we questions. operator, please lines open the will take

Operator

Race The Please now session. Sandler. the We’ll go comes Piper from first begin ahead. Nathan question-and-answer question [Operator with Instructions]

Nathan Race

hi Yes, guys. Good morning.

Craig Dwight

morning. Good

Nathan Race

hoping growth the year, in kind expand back half warehouse. maybe loan ex-PPP of from on to the for of outlook I perspective this Craig, your was a

you hoping in exclude low single transitory nature, frame kind there's are case of items your that kind and digit can optimism across If range. to like as obviously we those more volatile activities of the in increased are seeing just kind PPP? so you footprint expectations guys sounds it up of lately, the and So your some of

Craig Dwight

Nathan, in our manufacturing most first as country footprint. four question. states of is and in Indiana, Their now three the are doing is doing. Michigan the of employees across all, well hiring thanks or the our for are manufacturing challenge top customers right extremely

the slower pay that substandard some were assets, that very strong. high give President, and And Lending I'm glad Kuhn, get But Vice turn had quarter we are pipelines rates growth comment our Officer, quarter. non-performing to in detail. Our Executive that downs pretty that Senior see did you Commercial some to Dennis the we going were to also from over to first paid-off more first

So to want Dennis, that? you add to

Dennis Kuhn

Thank that's pipeline Craig quarter million and over our and percentage approved Sure. you, $XX see first from again, from periods look a versus a $XXX Again, million funded closed quarter, closing as second about Craig. positive pretty favorable quite mentioned, increased about commercial, outlook second consistent in million. is outlook very originated prior when we of that, you significantly funded of is with of quarter standpoint pending pipeline if we $XX

note much that credits, certainly is portion was quarter, mentioned, watch. activity watch again, of substandard significant So generally both elevated Craig of first payoffs, couple a list and picking-up, as but items of

workout fruition. are coming those again, activities So to

continue versus revolving we if was another see usage ‘XX And to $XX by reduction at down down thing first in credit first is quarter line other usage ’XX, quarter The $XX in you the million. look of revolving line first quarter a million.

certainly deposit So as order. on have side are that's PPP, in but showing again, benefited And our balance from good customers sheets well. their

Craig Dwight

activity. and consumer a we’re the mortgage robust still side, mortgage on just production Nathan, having

a predicting The coming had has payoffs lines volume to year, last Bankers XX% Association XX% the home the said, hopeful to this challenge credit. and remodeling purchases. actually equity the balances into that the record Mortgage But usage projects lines and we're we're due money been year, fall about in we’re of Do in projects, out activity, that we is later first cash refinancing fall-off the seeing pickup and the consumer line with those Yourself in. it Although mortgage, to back refinance, reduce stimulus of

question. thank for you your So

Nathan Race

just encouraging going great and forward, it, follow-up a particularly gears that's changing color as my Got bit, commercial on the commentary, little side question.

you that capital few levels will strong are up pretty increase sounds capital thoughts It to And and quarter, the quarters terms over just guys active options in later here. increased put are guys next build profitability You M&A this updated other an preclude of or near-term would your having in the priorities? excess if curious more an acquisition, on Any discussions. perhaps continuing shareholders? guys I deployment like from persist year, in maybe returning capital a for share being on you optimism capital expect repurchases

Craig Dwight

thanks question. again, Nathan, the for

are aware, have repurchase As plan place. you in a we

We have for XXXX. not used it

through buyback. hurdle buybacks. some process and versus thought emerging the is our through acquisitions, our we company the price capital of stock cash deploy rates the of will one, holding use better deploy of the hitting that our to it's our said, the for mergers some current stock capital of our time acquisitions, Some we not of stock excess if cannot With

Nathan Race

I guys you color. the great. for and appreciate you. all Okay, Thank taking the questions

Craig Dwight

you. Thank

Operator

[Operator comes with Terry from Please Instructions] Stephens. The go McEvoy question next ahead.

Terry McEvoy

Good everyone. morning,

Craig Dwight

Good morning, Terry.

Terry McEvoy

users I is first think of kind active the Mark, this data. guess hinted I I the and thanks question online my at for all, of and providing call. digital you guess

think you look that technology of in Or the number opportunities line? at you you locations Would the to other As areas, to reduce you it cost do side? think savings? any would the bottom footprint, the invest on do and particularly fall there's branch

Mark Secor

to we expect to to those that more look we to might of we might in markets, there's some have as utilize do Yes, redeploy also reinvest, the Yes, on definitely bottom and we opportunity opportunity And would that think look to and savings, growth more the with where thanks, better coming. be we the line, in to some drop reinvest see, branches, there's side ATMs Terry. of reduce of part we efficient. better, branch some technology

from our our and execute a on of properly, said, these what as I that team's make capacity is So sure to perspective successful. sure plan, all managing make we we're we're is,

Terry McEvoy

I hoping follow-up, in for Or different? felt terms just you, clear of a commercial it the it then didn't that me. for you was portfolio. you And to was portfolios can Are call the to Mark, the COVID in up I what just that was impacted that. increase behind a reserve follow need bit reserve? add those as quite Thanks. the something

Mark Secor

any side that related companies we where commercial Yes, the in specifically impacted saw COVID, to to would want adequately increase we the sure we’re reserved for reserves industry make those any that be through on hotel losses.

Terry McEvoy

Thank great. much. very That's you Appreciate it.

Operator

The Please Martin comes with from next Janney. question go Brian ahead.

Brian Martin

good morning. Hey,

Mark Secor

Good morning, Brian.

Craig Dwight

morning, Brian. Good

Brian Martin

Hey, of and about liquidity balance but the yield A the Mark could that just and funds, much little of just you not just cost surrounding of margin margin deployment, a year, asset of thinking give color the the more of in then just just the deployment the having about kind you're kind more the just the room, excess talked and I and know year? how the of kind you over last that

Craig Dwight

has Yes, Brian. we have our all accounting. The so purchase it PPP movement margin noise fees and as know much in thanks, we in whereas

to income. interest we the but margins that net going pricing some have there what focus going only the net to in in so want the surge we short so run. analyze, going we we investment portfolio them invest long continue mix, investment just the the is are in to continue deposits as not to mix to the income, pressure, is growth do to rates, is interest out be lower grow How stay? portfolio. And And pressures do the the of increase think to And interest our

the investments. in million and cash will we're and we've someday, said, we of loan strategy like had that to another run-off to quarter a cash currently up. million making And of million, seen as we we first $XXX So go be and fund But investments, into the help or the can sure the there. will deposits as we're and growth $XXX and also expect we of coming flows working $XXX fourth rates make not those off so and grow these deployed on have I portfolio reinvest anticipate

Brian Martin

and Got of the you. rate are originations what PPP, Mark expecting just on other was round one then two And you to kind those? what follow-up, just Perfect.

Mark Secor

is Round year-to-date million two $XXX originated.

Brian Martin

or is Okay. you I no, what not can have And an of do the rate idea that on follow-up? if

Mark Secor

fees mean Brian the You or?

Brian Martin

expecting the that? Because you're on yield

Mark Secor

those, of all the as I Well, been on fees. It's always amortization think X.X% range. yield to the it look it's at of in we the X.X% when

Brian Martin

Okay. Mark. All right, you thank

Mark Secor

until they of and pay As rest we amortize off, theme. the we the then get

Brian Martin

Take care. Got you.

for thanks Okay, question. taking the

Mark Secor

Thanks, Brian.

Operator

follow-up a question have Race with we Nathan from Sandler. Next, Piper

Nathan Race

you taking the Thank for hi follow-up question. Yes, guys.

resolved Just basis question in a in over higher some little in XX% seen And sale on far we’ve a on on income, quarter. first so fee a the little though mortgage the than a first gain others quarter. that's

just in get I volumes Horizon are of revenue next that the XX% revenue sale of maybe XX% of mortgage think And what to some on in to your mortgaging of for quarter? expectations your just curious kind outlook share? I or first drop-off in driver on for just expectations the that and in XXXX, So kind think a couple down over kind Or quarters to unique two? relative margin was it brought

Craig Dwight

for the question. thanks Nathan,

is think quarter, strong expecting expect and third I second mortgage, We quarter a that fourth industry a it's in to the drop-off.

in you took was a there in rising come some back there the if on as gain and what again. the quarter. mortgage recall as second rates before down quarter, sale in the back first sale And that does the gain which down fell impact they on far decline As place our percent, portfolio pipeline

Nathan Race

the following-up margin kind here? of the on Mark, you first Okay, margin excluding then great. PPP quarter have discussion, just any if And estimate in revenue,

Mark Secor

relationship core see what as cash quarter down excess same the And would core in a X.XX, PPP, so margin, XX is it from exclude this there. two to to I which the to sitting get the those been we that basis excluding about excess, Excluding quarter, exclude try would is X.XX pieces, fourth the points. and have fourth is have been

Nathan Race

include if where And excess that any ex-PPP, out? liquidity, you would sense shake the

Mark Secor

was you'd back a and fourth add that so quarter XX put or back, from the liquidity drag X%. excess take points, that basis in the Yes, was about X.XX there's been

Nathan Race

at like excess today least levels are to over rate the perhaps guys excess Okay. as the And everything seeing saw of liquidity the that what quarter not you're at that next you the today, or expectations are persist But those over levels year. last with release it are likely course seeing the we from sounds that building, liquidity two?

Mark Secor

Yes, going Act. the coming last definitely, be and municipalities through then there's the CARES to in stimulus additional to

to coming dollars really seen year. portion that we a that in good will to haven't So liquidity, we And sector, anticipate so we see this elevated more be point. which of anticipate even this from

Nathan Race

in pickup got of a securities XXXX And redeploying into on of it as half the it in well as them and and commercial back of to QX some expectations like. like, kind sounds growth you to of terms loan discussion, a sounds entering earlier just focus well the

Mark Secor

correct. Correct,

Nathan Race

Thanks great. follow-up the guys. Okay, taking questions for

Operator

a next is ahead. with follow-up Stephens. go The McEvoy Please Terry question from

Terry McEvoy

Slide really I back terms thanks, years. going XX X in just growth asset of Hi, the like

year spot of Your your And do maybe and think what's maybe me outlook the just you'd that be wondering, potential that just in you flat. And of targets? remind impact does fill is sweet terms this M&A Thanks, Craig. larger targeting kind view how opportunities given of growth? organic I'm for your to M&A of lack void

Craig Dwight

you, Terry, Thank for the question.

we're the has has out lower $XXX but the it so deals think Michigan, which assets activity, is anyway, million target million hurdle meaningful M&A, years does an move our acquirers, the both which in considerably $XXX smaller that market over up. and to we moved certain the We last three less, or Indiana up banks I increase acquisition Credit complete rates of have for and EPS Union of above, taken most or an small our to picked current have in up seeing

Terry McEvoy

Great, thanks again.

Craig Dwight

welcome. You’re

Operator

from Please question ahead. follow-up with Brian Janney. a go is Next Martin

Brian Martin

the Hey, thanks follow-up. for guys taking

the Craig M&A Terry’s back geography Just just question, my then one to wise. and but on

I think you last the before that. quarter, quarter said

You and Indiana I primarily of Is at that is today? were Illinois. that the it no kind guess on looking longer focus Michigan Is that?

Craig Dwight

Brian, yes, Indiana, Northwest that's Ohio. correct. and Michigan,

Brian Martin

the trend improving maybe talked Northwest over economic Ohio, pre-pandemic now. the toward should should really on you muted seeing I conditions reserve that growth outlook, to was think strong just credit? how okay. you're just guys the some given then your maybe we and up trends But positive picking my really in see reserve the here And time? maybe a about about follow-up deposit start side, the levels back we and mean, improvement given

Craig Dwight

Yes, loss so Brian are low that holds as strong, be outlook continues the historical loan econometrics our for rates the to well.

another the of through until it's get about credit unknown through to that we the loss right cautious settle pandemic would hard predict we going now. a and wave? there point little time. there to COVID-XX get due the yes, down, But if to the is So release uncertainty, you're in at I'm right, a reserve So really some be but be factor uncertainty,

Brian Martin

very you much. thank Okay,

Craig Dwight

Thank you, Brian.

Operator

our Mr. remarks. would concludes turn to session. Dwight back This I to conference the for like question-and-answer over any closing

Craig Dwight

of you Yes, through in thank for end the get call. you participating Bye for now. near-future, the And we hopefully forward earnings we with today's a questions to again this Have Thanks person speaking pandemic. look today. in in good as your day.

Operator

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

may You now disconnect.

Horizon Bancorp (HBNC) 3 May 212021 Q1 Earnings call transcript