Horizon Bank posted a $13.1 million profit in the third quarter, up from $8.2 million a year earlier.
The Michigan City-based bank earned $0.34 per share, up 41.7 percent from the $0.24 per share it made during the third quarter of 2017.
Horizon Bank has made $40 million so far this year, as compared to the $25.5 million it made during the first nine months of last year. It's earned $1.04 per share so far this year, up 38.7 percent from the $0.75 per share during the same period of 2017 and the most it's ever earned per share in a nine-month period in its 145-year history.
“Horizon’s 2018 third quarter and year-to-date results demonstrate our ability to generate organic growth and produce solid returns, through increased mass and scale and investments in growth markets," Chairman and CEO Craig Dwight said. "Net income increased $4.9 million, or 59.9 percent, to $13.1 million when compared to the prior year period."
The bank posted a 1.26 percent return on average assets in the third quarter, up from 0.96 percent in the third quarter of 2017. Horizon has delivered a 1.33 percent return on average assets during the first nine months of 2018, as compared to 1.05 during the first nine months of 2017.
“Total assets increased to over $4.1 billion at Sept. 30, 2018 which reflects Horizon’s solid loan growth of $124.3 million since the beginning of the year," Dwight said. "Total loans have increased at an annualized rate of 5.9 percent with increases in consumer loans of $75.1 million, mortgage loans of $44.5 million and commercial loans of $28.9 million."
Customers have paid off $134.5 million in loans so far this year, but Horizon has continued its push into new markets across Indiana and Michigan.
"Horizon originated approximately $257 million in commercial loans during the first nine months of 2018; however, only 63.4 percent, or $163 million, of these originations had been funded as of Sept. 30, 2018," he said. "Our investments in the growth markets of Fort Wayne, Grand Rapids, Indianapolis and Kalamazoo experienced an increase in loan balances of $70.6 million, or an annualized rate of 18.6 percent, during the first nine months of 2018.”
Horizon’s tangible book value per share stands at $9.04 per share, the most in company history. And the bank, which is up to 66 branches and acquiring Indianapolis-based Salin Bank and Trust, continues to grow.
"The impact of cost savings from our 2017 acquisitions of Lafayette Community Bancorp and Wolverine Bancorp, Inc., in addition to other operational leverage strategies have resulted in an improved efficiency ratio," Dwight said. "Horizon’s efficiency ratio has decreased from 68.3 percent for the third quarter of 2017, which included merger expenses, to 60.34 percent for the third quarter of 2018."