HBNC - Earnings call transcript Q1 2022

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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, 2022. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] 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

and Retail company forward-looking Officer, Kerber; refer to certain contained release financial If to and understand Chairman like Officer, for any President www.horizonbank.com. have Executive measures ahead, are measures at would Executive business. I addition, Secor; Craig Horizon's Executive are intended at In at Reconciliations obligation statements yesterday, anyone does a copy it Vice Please to Vice President, during this management Chief that Mr. website made CEO, call. Officer, over Vice this the President time, Officer, DeRuiter; Dwight; Dwight. Najera. assumes and Mortgage me, presentation to Vice Financial presentation. Chief Noe Representing excuse President Horizon Kathie not The in of and may Lynn by go are access company's update investors and already Officer the issued today Banking non-GAAP Horizon the And call Lending and turn no can Mark and Operations Senior to Executive sir. -- Lender Senior help press you the Commercial supplemental these

Craig Dwight

participating Horizon Conference Call. Thank you, morning Earnings Quarter Chuck Bancorp's First you good thank in and and for

plans efficiency asset record growth. loan the quarter announced April XX. going report pleased late from and the offices, and close first the offices that and follow our presentation consolidations published press gains The stabilization a earnings yesterday, excellent an second quality. today into quarter consumer the of acquisitions, continuation to will momentum XXXX comments Our strong the is for X solid release and with of successful recently XX to additional our the continuation summer and of investor branch of integration commercial Horizon we

We in successfully and internal of our focus return associates efficiency are X XXXX of Slide in reporting quarter. Horizon Horizon's at as an XX.X%. offices to an average in loan results per branch compares closures. net from to financial metrics tangible how XXXX the return on Driving favorably they the share are very of XX.X% quarter of double-digit organic initiatives of pandemic-related on the XXXX. first completed our efficiency were growth proud assets and fourth from and the an end first share the ratio quarter increase commercial the interest and and the on we quarter notable revenue X.XX%, presentation, additional acquired from record Starting return achieved reported at Horizon average the $X.XX consumer saves of to $X.XX per reported margin, earnings for which shifted cost annualized equity XX growth, and

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

line communication Indiana superior of double low-cost creation and for workforce and being The continues growth are life. lines Plan The development. Lake roads support County Michigan invested track infrastructure the Investment expansion as between Chicago, in private on to excess Lafayette Northwest West partnerships dollars challenges. we sheet, in and and managed quartile Both the in American and force into regional output promote to transportation they availability and Regional attractive investment are rolling of Indiana labor promoting core supply transportation-oriented into invest considerable deposits. attracting through known include why and inflows diversified located investment seeing creatively and our and rail Indiana, Bend. record returns University manufacturing to authority Michigan Midwest back in in improvements as of Horizon? South chain to a in quantum lower quality balance housing. commuter report Rescue infrastructure top Horizon are focused due profile the liquidity a So We're extensions. manufacturing ranked risk with markets.

bottom We are a and peers. the XX% favorably that to us for will earnings XXXX ability company, were a increase positive grow income. have from opportunity XXXX support growth outlook for net our efficiently to ability than the XXXX from for believe earnings which faster compounded total assets we further to to company's Horizon's Horizon XX% rate Horizon's another To provide line. we illustrates annual growth distinguish total assets

technology banks on of deliver and can new fintech who advantage at partners flexibility core community include key on that able and with partners in select data and the service and per management. our relying By to transaction strategic lower price our to the is expedite best-in-class Horizon's peers provider, to not platforms core Moving to in-house ability and the services onboarding best CRM digital due than based Horizon flexibility. over to and technology cost on optimum transformation. products

strategy proven you're effective very core for transaction. has XX-branch integrating when last the in-house acquisitions, Our including

active the an of experience on to we as our Horizon partners focused on addition, boards. have are be most developments considerable improving advisory and In fintech entities' nimble, voice resources future representatives customer these have on allow

to see proportion years. over four Page customer and can its total applications last XX, devoted spend As employee-facing of Horizon has more the you a doubled tech strategic on than

our $X.X XXXX in has Horizon million employee $X.X As technology, a result XXXX. in its in in productivity measured of improved to from as per investments million assets

our customer online scalable. XX% which make to an deposit model spend of of only XX% the answered plan to past increased over and transactions XX% chats over in We to annual in from average two ever XX% XX our our our digital enhance account continue XX% XXXX Horizon's peer consumer of first more XXXX. the to by increase months technology the from compares quarter next over opening in favorably increased in X%. are will our Our bots. And online to the years see experience XXXX

for efficiencies of commitment to average and assets throughout intend to increases initiatives. by earnings full at investments in effective Even these continually these Horizon expense with network deploys buybacks, improving As years, with technology year X% of acquisition target XXXX. dividend offset evidenced the continue opportunistic manages as less to XX recent and our or our we retail stock in than non-interest and we example, organic aligned by growth the organization. use levels capital efficiently our for investments, branches, capital of prior to

analysts' comprehensive portfolio. income and accumulative rates the on unrealized comparable adjustments year other investment recent the reported focus on and to this losses mark-to-market bank's ship a balance Our unrealized is reporting. appear to in as rising the financial Horizon's on investment be of interest most companies losses the result the occurring based sheet

valuation acquisitive results flexibility strong the buybacks. balance result stock of also increase Horizon's actually bank's X.XX% portfolio when ratios mark to in as to TCE be total in to we we the growth have quarter. our that position, first you XX. organic to pursue the Due significant economic for This sheet. continue of a the and capital losses, our reports our value regulatory and still declined All unrealized March capital believe strategies an capital equity As earnings disciplined robust reflected and entire

we plus our Horizon in our sees no increases continue years uninterrupted dividend dividend XX to and fully earnings. quarterly as addition, of cash aligned expect policy In with change dividends

over Now, pleasure Secor. Mark this Executive Chief it's President my and turn Vice to Mark? to our Officer, Financial

Mark Secor

quarter the Horizon to you, investments. first net due record reported cash in growth loan Craig. income Thank excess and moving into higher-yielding strong

slower these with by Starting totaling Slide loan the positively asset less $X.X million on quarter from on the the accounting company's due impairment purchase achieved mortgage prior the speeds. less recapture results pleased we strong interest marks momentum the quarter to results first with asset the first going of with all in servicing quarter, impacted and for down PPP servicing the see along and are income to We quarter depreciation second in into were of $XXX,XXX quarter. was the XX, prepayment Net the $X.X last from income. primarily slowing million, due

to low rate environment, are wanted details CECL our see interest focus release portfolio income assets replaced charge-offs for continue believe low our increasing on appropriately balance into loan We release strong to net a credit million the $X.X compared interest been expect XX; a deployed to expectation see by linked state we quarter. and to we and performance, reserved has provide increasing the had non-performing losses in of higher-yielding of cash on a few income net outlook million $X.X We in income credit as and sheet. an continued given rising and and rates. for we PPP modeling. loans growth growth, We as Slide economic current our current

rate with ratio As includes $X.X would of a $X.X of asset-sensitive rate of XXX% in move March index. of billion are GAAP an XX, their position adjustable which with XX-month assets that approximately to we change approximately a billion

quarter was March reduced model our the to our net the in loans case. This XX risk sensitivity XX, $XX during as income. by assets September of to investments interest income case additional million net generate more moved and from higher-yielding cash Asset and interest base increased was interest XXXX base rates

interest would increase market of income $X.X is Contributing range the result to less XX, when rising currently our million. or deposit a As in consumer for as At BETA's generate a of to is the rate a on deposits expected there less being sheet. balance money X.XX% approximately a for increase March funds. which point in asset X% basis are increase used an this modeling to shock we XX% net public and sensitive, from volatility XXX of

was compression was was in benefit interest by increases our it this continue quarter from two income during the in end now points and was funding income points $XXX the the quarter basis increase cash cash margin since net as to impacted XXXX. expected adjusted are assets increased realized. PPP expand decreased. of and average the costs expected was XX rising X increased high most This our as loans basis quarter. only PPP has position asset-sensitive been and of margin balance points billion This our million along and needs impact cash the revenue investment $X.X basis the from portfolio increases. loan at these margin will deployed at higher-yielding last With the end additional positively expected, and to As XX; to the held expected rates, during of and to the offset is growth with short-term by during XX; enable the from of interest Slide quarter. deployed reduced, rates margin Slide

to book X.X quarter, the portfolio XX% of portfolio effective during longer-term on an impact and XXXX maintain X.XX% industry. of of which in of XX, tangible we the unrealized We which reduced the investments increased expect the with to in available -- to increased are December is first duration held XXXX at during basis Also the yield investment helped sale has XX% rates. Slide the the which lessen we in impact maturity for from loss increase quarter a the points what line equity securities XX by seeing in common the of XX; years.

maturity, are As to losses as invested pay interest investments higher have and and cash ability over we investments rates. time recover expected the flows down are intent to hold these to these at

reduction three retained in TCE back approximately to been would In current addition, earnings. earned have from quarters the

help manage quarters in increase range, costs, in the to currently or for income by maintenance in reflected additional over XXX of to liabilities that commercial our low-cost consumer the XX; the believe be in first To is quarter XX; lower margin point that rate line acquisition slowed. the more deposits in average to expenses significant The seven environment. into our to healthcare rates help of the sale in commercial million securities losses point growth, expense the funding When With technology. for expenses of of in not the of income anticipated in to the over basis two and into recognize by the treasury quarter continued higher-yielding TCE. non-interest an will to would on restrict goal, with our the the cash core year Continuing the rising was been seasonal a refinancing valued, maturity investments With fourth items our in to anticipate approximately less. the like loss absorbed X.X% management in rates, core jump rising only hedge the rates we with first activities ability purchases our and strong result economic being in moved continue points, unrealized expense repurchase compared We move a speeds past leverage consider operating total the tempered increased strong gain or fee along valuable and like on approximately certain funding the is non-interest higher run put in longer-term loan specifically TCE, value being by to to leveraged goal investments the available fourth services in held with impact sale available we expense merger in in has seen our Due will provide sheet PPP income. to impacted investments in resulted to next Mortgage continued core decline TCE. acquired loan prepayment total going and to XXX in will costs sale The were X% merchant this mortgage generate XXXX deposits. maturity, basis growth and will flexibility helped $XXX to move quarter basis and was low-cost assets. the a our rate growth, as for average equity which shock servicing revenue along rising rate we XX quarter. estimate of continue entire strong rate Slide pipeline another assets and growth the sufficient believe balance value with of to longer-term first branch in held assets our the help improvement increase seen during have not additional share to unrealized this as also capital impact has of As quarter, income of quarter. the September. opportunity to Slide fund slightly future. improvement decrease and bank's enough have and to in expenses

continue As our branches part approximately we the tax announced charge will fixed to seven months. help in expenses. assets in annual approximately $XXX,XXX with manage to will optimization an second of of branch before consolidate six be process, of realized which anticipated one-time quarter plans The on XXXX payback

effective We also additional rate. have will to tax tax -- continue made credits improve and that in continue investments and our support

to over activities. I'll on provide turn Now, to lending an back update it Craig our

Craig Dwight

for Mark, you, Thank the good report.

Contributing excluding loan commercial quick was growth continue Now growth the and reported for loan growth PPP XX.X% a quarter, sold at to participations, for see update. of we first annualized Core infrastructure a loan rate, sectors. as of is increase in business line commercial most across in outstandings, increase number Midwest commercial and the loan investments. rebound in the an credit regional manufacturing officers, growth to loan

loans Consumer quarter's with we experience we as strong car approximately loan up million. loans equity for addition, a have consumer in reported of momentum a $XXX In first the home for second to increase XX.X% into and pipeline good quarter commercial going the $XXX a loans. the million, annualized demand first of from quarter approximately pipeline continue

equity quarter home line the in balances row. addition, for second In a increased

$XXX which for favorably We also consumer pleased to the first are of loan of with total $XXX XXXX million. quarter production million record compares the production

the Fannie prior production Given loan the which unemployment loan year by Mae's demand in favorably high Mortgage even reductions to we XX% Mortgage our XX% first does XX%, robust. rates, Bankers Association's and low the respectively. remain quarter compare in markets, over consumer declined expect inflation of period forecast to with and

quarter production. first is for typically mortgage season our The slow

improvement rate production. rising second expect we the even environment, So in with the do quarter's

was of sold lower reported gain quarters, down linked the loans sale for on over of loans the $X first interest on at a XX% rates result gain million, the our quarter. resulting a mortgage X.XX% and production, rising in quarter As for mortgage

by the evidenced the As only mortgage gain on and income Horizon's strong X.X% highlights, annual revenue growth growth compounded total for reserve asset XX% sale the remained summarize reminder, a a as X.XX%. first net of and income. Overall, first our loss in to in total and quarter, Horizon franchise loans credit mortgage low net charge-offs loans constitutes quality warehousing To at by non-performing loans of is quarter. company evidenced rate solid key a

loan sheet ample risk lower lower Horizon given approach and disruptions. cash profile flows both tangible liquidity a has XXXX discipline combination result in sweet rising XX demand, profile in of expanded a higher portfolio, and geography, and product for interest spot and recent our Horizon's balance investors, and branch consumer operating of is increase growth future risk as fund diversified mix cost earnings for with loan and balance XX.X% rationalization. sheet a disciplined in provides inflation capital and Our growth of volatility our and branches of than rates, especially on commercial many the well chain to low The peers. footprint, which to XXXX an wage new our of positioned related is for supply a to acquisition returns

first Slide given demand, return assets on two pipelines, rates strong quarter adjusting full XXXX As XX noted and low our results, unemployment current production growth our outlook. on year loan our of and pent-up we average are goals consumer increasing upward and loan

expect forecast excluding growth increase our loans, XX% we commercial from XX% an range which For in in XX% is XXXX. of December to the loans, PPP currently

in original X%. forecast consumer For the from loans, of currently grow up we range to to of X% XX%, expect to XX% our

X.X%. the We the now on our and X.X% please questions. asset remarks our ask I'll open lines are concludes for average today return This from outlook greater than increasing to prepared to operator

Operator

the McEvoy Please will And ahead. go with Stephens. from Terry first Instructions] come [Operator question

Terry McEvoy

the company? the to in invest talent the half if closures question, where plan you the the plan making second can case, in Good year, thanks. the be Maybe and those bit technology that savings. on Is a that's investments this little branch continue and more specific cost Hi, on you morning, everyone. to first the of across

Craig Dwight

Yes, saves as markets the which Terry, to we Grand Indianapolis the technology deploy some plan Indiana to cost and Michigan experienced Michigan, Rapids, growth such as the that's area, exactly well County, Oakland as Northwest even growth. as

So yes, to that's markets markets. is deploy plan cost the it really from growth the saves to to offset non-growth

Terry McEvoy

on a Page it's Page, Mark, for you question guess then XX. And I

environment, correctly, today is if up on Is is Just so six sensitivity ago. correct? I an the read versus amount point XXX math the asset last months months, while basis I'm the down correctly, higher the six doing basis that dollar over a dollar it in

Mark Secor

Yes, that we provided. because from the the base case million September grew information $XX

Terry McEvoy

That’s great. Thank you.

Craig Dwight

Thank you, Terry.

Operator

The next with Piper Nathan ahead. go Race question will Please come from Sandler.

Nathan Race

Hi guys, good morning.

Just want contributors think, Is loan expectations I to increased primary Fed the that in for get target. December of kind saves spoke be components? context, outlook the the it's increased terms X.XX% just for any guiding there you that X.XX% XXXX ROA to are to factor? dig expectations X.XX% as last the higher expectations that growth versus, Day. a into when Are of you that outlook your ROA rate the the in at goals, Investor getting year other this updated your hikes a I'd curious cost within guys for

Craig Dwight

lot There's that but it growth. a number toward improvement one net the margin due to in moving interest loan expansion of are components is

low volume-wise about of we're The our the first quarter is seasonally quarter up. and kind optimistic coming second typically so

In in not BOLI have by $XX today. plans million is sheet addition, increase balance we the which to our

assets ways the to earning of lot rest a our the year. there's increase through So of

of lower we become total assets a as will percent improve In too. earnings addition, performance, our our cost

X% to cost we this assets that total less So do of year. hit expect or

parts. lot different a there's So moving of

Nathan Race

trends week terms with get in get we're to in thoughts perhaps core margin it. another maybe I then Got likely X.X to just love in well. guess Fed as X.X would how context, next the from here. increase funds perhaps some and of that point point Obviously, June margin Mark, just on Understood.

impact see next on kind the over backdrop, this near-term quarters? the of rate trending do So couple margin how you the

Mark Secor

Yes.

continuing grow. margin we stated, the I to As anticipate

was think cash. to the deployed last contributing we low is all quarter. And the point that, I have too,

basis So with the points. an basis, just that XX had first cash average quarter on a early drag so

improve going cash forward that also. and investments getting loans moved into the So helps margin

Nathan Race

Okay, the color. great. for step Thanks I’ll back.

Operator

question Please Raymond The with next ahead. Long from will come David James. go

David Long

second about the Mark, are look in talked cash. quarter deployment? sheet. the Good when the you've going in want And morning, and XX% aggressive the for had you the How pace or aggressive to everyone. the think growth? here at balance will and that I the in get that put of about into here quarter, in quarter Do that on forward? still about should How you you deploy numbers loan holding average securities, off we cash you on

Mark Secor

Yes. where cash the total balance quarter the We was The ended million. will this it be cash at with probably $XXX point.

just daily operations million $XXX is Our settlements. and $XX million between for cash

So we it got first the through all deployed quarter.

loan also is in to then the just manage absorbing to position make just to of always to Some that's a wanted we'll In at the it, and we're sure now. past, advantage slightly investments and growth be I where maximizing this the point. so trying borrowed we're

David Long

quarter, throughout Got it, NIM in the on accretion purchase we I now. change that Is the forward? the should impact how accounting level that as should see XXXX? Mark. that basis The X around change going at -- that it was the right look points. how think And I right Yes,

Mark Secor

in. less quarter. a last we acquisition, so in going We and X.X didn't last the the couple I transaction will can less accounting and lot be We think purchase years. be through I trending to to $XXX,XXX the from downward. the chunks think that up But have up a pick get the Yes continue that of come of impact still branch we're as we're next with

David Long

the reserve then Got level pre-pandemic, it. level, under CECL X you Day X%. talking just And about were finally a

we're level Moody's you'd you the what's your down that? reserve level right reserve to the that given than to now closer see hit your level backdrop mix at here the for numbers, still looking from with to coming and Given loan pre-pandemic? what where we expect are relative do Or

Craig Dwight

is David, Craig. I'll in jump This here. Yes,

we forward. sectors place, to We portfolio allocation taking portfolio the sectors based world in specific shifted variability expect the supply releases But the however, from situation, our issues. going on chain Russia-Ukraine qualitative commercial minor so

qualitative So until see down, And I we've reserves the to shifted than our don't that quantitative. more aggressively you settle X% mentioned. us back releasing down to range we see

David Long

taking Got it. you questions. my Thanks, guys. Appreciate

Craig Dwight

David. you, Thank

Operator

next with KBW. from come will The question Please go DelMonte Damon ahead.

Damon DelMonte

good morning today. well Hey, guys. doing is everyone Hope

Mark. from a on Are just quarter's like of million little Could expenses, you kind salaries guidance you this give inflation the question we First should issues, And $XX.X think the employee up level? and wage over creeping on cadence about benefits? how seeing quarters? next couple

Mark Secor

Yes.

has has It's that been first plays from -- from other into like think that harder company, do do have some see We having Obviously, full -- wage employment. I every the we some year. quarter to continue it positions we last wage significant think fill. that. raises of increases are I What have also is not will pressure. to but

employment expected. full isn't So just

on bit going wage we saw benefits, I what also of forward we in think that more to had there's increase over and come year. significant be that healthcare some to we balance little anticipated in remaining would a part of anticipate the out down hopefully would over to going a degree. pressure increase category have the costs would But some

would the the first good. the leverage continue like like to of in rate So run the rate in. higher that now, to is spend feel we we are The year. some I always rest the think technology said, is run maintenance that through seasonal We we're seeing that quarter. But like pretty costs right I had,

Craig Dwight

investments do that, to with could fewer technology increased add more If the to in our our over years. people have several last I capacity

comfortable we staff with fund expanding not So our very growth feel to anyway. loan

Damon DelMonte

it. Got

here. was, do you And be of banking great. previous for number said what year, the on your on income side, repeat feel just I still this on mortgage with Is the could helpful. That's fee income was be the then question year what two-part your a MBA number of or you the then guidance quarter. the kind would impact servicing that mortgage Okay. for outlook comfortable expectations what two, you Mark, think line the the mark one. And Maybe that will had outperforming

Mark Secor

of asset that had first take two servicing taken that million Noe we've outlook. speeds was prepayment booming $X.X years talk the the we Yes, when last high. about part refinancing and mortgage were the I'll then Yes, on and impairment over

up. with the portfolio, pick we the all recover and So no slowdown so value impairment did of there's more increased impairments, the of our to

was that side our been portfolio is of the the $X.X undervalued servicing the depreciation, ongoing, on books, has is also our the million. on asset servicing because slowed. But depreciation other the -- the So asset servicing portfolio, still

So could $XXX,XXX additional of from seen see month range $XXX,XXX we we to of a we the would income what that anticipate year. a had servicing in last

Damon DelMonte

I'm per that quarter? a sorry, month is or

Mark Secor

Month.

So to quarter to -- a $X,XXX million $X,XXX the in $X.X million quarter. or $X.X

Noe Najera

Currently, Najera. Noe Yes. want is I XX%. that this beat Damon, And add just in market. the we're to at to are expecting the projections

serve. for talent that and to in We the hired we look markets will have continue

We the are well in with products well that markets our portfolio products, play that construction positioned serve. our we

anticipate So that this throughout the trend continue year. remainder to we of

Damon DelMonte

Excellent.

guys. you Appreciate Thank it. very much Okay.

Operator

with ahead. Janney question will next Montgomery. Martin The come from Please Brian go

Brian Martin

there that $X.X there million sure? last make was something of quarter or maybe quarter, half guys. just -- morning, The quarter, question servicing. amount that quarter on in impact the that. a just million $X.X of this it Is the to Good was first about on half in results, Mark, in that this from

Mark Secor

that's Yes, correct.

Brian Martin

your just comments maybe capital. just, then And about Perfect. Okay.

think year -- cash that and we Just this of will that kind is this way expectation think the as balance kind growth that the to about the year, it a from be portfolio remix, best at investment just of in --? Is loan funding least the that's the of about the the capital, XXXX? just it cash deployed, the than size sheet, is been rather --

Craig Dwight

comment. I That's of part Brian. our Yes, a plan, think safe that's

However, ratios are robust. our regulatory capital

capital or of us so of down slow alternative deployment that the looking or doesn't cause it And at capital. to stop use

one is does the attractive. should item The from a -- things our from -- on a price-to-earnings comprehensive balance that income sheet look other viewpoints raise price-to-book investment community an

measurements, one at So by both just you itself. look not

a looking see don't investments. we in at slowdown So alternative other

Brian Martin

ahead, I'm go -- sorry. I Yes. Mark. No,

Mark Secor

Just look to maintain on the for we what leverage see market. to in opportunities or depending

will we the decision made we get and portfolio do a with on the through to So what as year. want investment be growth

Brian Martin

Yes, that makes sense.

just Okay. for me. two last the And

your have where Or the that's Or you you're loan amp guidance, know of comments growth, on -- kind expectation expectation personnel is to Craig, on your Just talent have of you is there maybe in pipeline, hired today? add lot that the at upping people. is more that people? is guys your of kind going I a the

Craig Dwight

are plans not the Brian, Yes, add to any people.

opportunity and for them if can aggressively last it's of we However, opportunity will the seize like hire you talent, But talent in with that and said, that be months. we're did going the not we opens that the increasing XX just to window presented. good so

Brian Martin

And of yet in to makes that more here? which Yes, on the what first should margin? the numbers XX, so any color think hasn't And XX kind this at basis to kind last been behind one Mark, the the about expect you give we least hikes I next benefit some points maybe know one. of but just just the March NIM of -- have it how you that rates, on come increase then is, out Okay. can put that numbers sense. on fully though that how impacted of

Mark Secor

rate XXX around interest asset have And that was our from information XXX that because I was Yes. of points basis from would we By picked that's months $X.X are where increases. that where realized From provided, in think, income. the additional sensitivity increase it a ago, or lot grown. net reducing point basis base million, we income that has six shrinking we case up the

Craig Dwight

$XX a million the aggregate's change. Yes,

Mark Secor

Yes.

Craig Dwight

Pre-tax.

Brian Martin

Thank questions, perfect. for Okay, the taking you guys.

Operator

go Piper ahead. will Sandler. with Nathan come Race from Please question next The

Nathan Race

Thanks.

a clarification I've point Just questions received investors. of from because

of loans and sheet and well, terms in of there Just think just were participation the in assets did side reclassifications the at terms as commercial agreements, the primarily I there? balance or any the that on play stem of factors other liability solely review from

Mark Secor

of accounting agreements participations No, it. that for It's our was interpretation, some interpretation sold.

balance sheet of on corresponding and through participations went on this on liability borrowing the And So quarter. it sheet with just the was the all and ahead the the we side. booked secured through audit balance our first sold

end looking So because impact no income. assets. average to the impact quarter, don't we assets so average it skew at the each we're doesn't It of at even

Nathan Race

clarification, we Understood. that ironed that out. appreciate sure Mark just And want make and to have I

Operator

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

Craig Dwight

earnings Well, forward good speaking thank for Have a to the you future. again call. today's participating you day. in in We near look with

Operator

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

now may disconnect. You

Horizon Bancorp (HBNC) 28 Apr 222022 Q1 Earnings call transcript