Profit for Horizon Bank's corporate parent rose 42 percent in the third quarter as the bank said it was able to boost revenue organically and as a result of an acquisition.
Michigan City-based Horizon Bancorp, the holding company for Horizon Bank, had net income in the three months ending Sept. 30 of $4.9 million, or 54 cents per share. In the comparable 2011 period, the company earned $3.4 million, or 36 cents per share, the company said in financial results released last week.
Net interest income was $15 million in the quarter, compared to $12 million generated in the third quarter of 2011.
Horizon Bancorp completed its purchase of Franklin, Ind.-based Heartland Bancshares Inc. July 17. Excluding loans and deposits acquired in the transaction, the bank said in the third quarter it added $43.3 million of loans to its books and $50 million in deposits.
The bank has already started collection efforts on 26 percent of the $114.6 million in loans from Heartland that are delinquent, in default or close to it or expected to result in a loss.
Craig Dwight, Horizon Bancorp chief executive officer, said the institution remains focused on growing its commercial lending portfolio and increase the amount of relations with customers in small- and mid-size businesses. He also said it would hire new mortgage loan originators to serve the growing Indianapolis market.
Horizon Bancorp has assets totaling nearly $1.85 billion and deposits of about $1.31 billion.
The company is declaring a three-for-two stock split to be paid Nov. 9 to shareholders as of Oct. 29. The split will increase Horizon's outstanding shares from about 5.8 million to about 8.7 million.
Shares of Horizon Bancorp stock, which are traded on the Nasdaq Global Market, were up 0.2 percent to $29.14 in Monday afternoon trading. Horizon is ranked No. 3 in deposit market share within Northwest Indiana's seven-county area.