Horizon Bancorp Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter of 2016
January 26, 2017 at 03:25 am IST
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Horizon Bancorp reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company's total interest income was $29,389,000 compared to $23,790,000 a year ago. Net interest income was $20,939,000 compared to $20,222,000 a year ago. Income before income tax was $7,212,000 compared to $8,390,000 a year ago. Net income was $5,603,000 compared to $6,175,000 a year ago. Net income available to common shareholders was $5,603,000 or $0.25 per basic and diluted share compared to $6,144,000 or $0.34 per basic and diluted share a year ago. Return on average assets was 0.69% compared to 0.94% a year ago. Return on average common stockholders' equity was 6.49% compared to 9.53% a year ago. Book value per common share as at December 31, 2016 was $15.37 compared to $14.20 a year ago. Tangible book value per common share as at December 31, 2016 was $11.48 compared to $11.02 a year ago. The decrease in net income and diluted earnings per share from the same period of 2015 reflects an increase in non-interest expense of $4.0 million, partially offset by an increase in net interest income and non-interest income of $717,000 and $2.4 million, respectively, and a decrease in income tax expense of $606,000. The decrease in diluted earnings per share was due to a decrease in lower net income and an increase in dilutive shares outstanding as a result of the stock issued in the Kosciusko and LaPorte Bancorp acquisitions. Excluding acquisition-related expenses, gain on sale of investment securities, prepayment penalties on borrowings and purchase accounting adjustments, net income for the fourth quarter of 2016 was $8.5 million or $0.38 diluted earnings per share compared to $6.0 million or $0.33 diluted earnings per share in the fourth quarter of 2015.
For the year, the company's total interest income was $106,529,000 compared to $88,588,000 a year ago. Net interest income was $85,992,000 compared to $74,734,000 a year ago. Income before income tax was $32,713,000 compared to $27,781,000 a year ago. Net income was $23,912,000 compared to $20,549,000 a year ago. Net income available to common shareholders was $23,870,000 or $1.19 per basic and diluted share compared to $20,424,000 or $1.26 per diluted share a year ago. Return on average assets was 0.81% compared to 0.87% a year ago. Return on average common stockholders' equity was 8.23% compared to 9.87% a year ago. The increase in net income from the previous year reflects an increase in net interest income and non-interest income of $11.3 million and $7.6 million, respectively, and a decrease in the provision for loan losses of $1.3 million, partially offset by increases in non-interest expense of $15.2 million and income tax expense of $1.6 million. The decrease in diluted earnings per share from the previous year reflects an increase in diluted shares outstanding from the stock issued in the Kosciusko and LaPorte Bancorp acquisitions. Excluding acquisition-related expenses, gain on sale of investment securities, the death benefit on bank owned life insurance, prepayment penalties on borrowings and purchase accounting adjustments, net income for the year ended December 31, 2016 was $29.2 million or $1.45 diluted earnings per share compared to $21.7 million or $1.33 diluted earnings per share for the year ended December 31, 2015.
Total net charge-offs for the fourth quarter of 2016 were $310,000 compared to $1,976,000 a year ago.
Horizon Bancorp, Inc. is a bank holding company for Horizon Bank, which serves customers across Midwestern markets through digital and virtual tools, as well as its Indiana and Michigan branches. The Company operates through a single segment, which is commercial banking. The Bank is a full-service commercial bank offering commercial and retail banking services, corporate and individual trust and agency services and other services incident to banking. Its retail offerings include prime residential, indirect auto, and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. It also provides a range of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally. The Bank maintains around 71 full service offices. The Bank's subsidiaries include Horizon Investments, Inc., Horizon Properties, Inc. and Horizon Insurance Services, Inc.
Horizon Bancorp Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter of 2016