Horizon Bank shareholders can expect to get more money back in their bank accounts next month.
The Michigan City-based bank boosted its dividend by 15.4% from $0.13 per share to $0.15 per share.
Horizon Bank turned a record profit of $22.2 million in the second quarter, which was up 8.6% from the previous quarter and 51.5% from the second quarter of 2020. It earned $0.50 per share in the second quarter as compared to $0.33 per share at the same time a year earlier.
Horizon Bank will pay its next quarterly dividend on Oct. 22 to anyone who held common stock as of Oct. 8.
The bank, which just reaped a record pre-tax, pre-provision net income of $24.5 million in the second quarter, is paying out annual dividends of $0.60 per share. That represents a payout ratio of 31.3% over the last 12 months and a dividend yield of 3.61%
“Horizon achieved strong earnings in the second quarter, along with increased non–interest income, stable net interest income, lower deposit costs and strong asset quality metrics,” Chairman and CEO Craig M. Dwight said. “With an improving commercial lending pipeline, and ample liquidity and capital, Horizon is very well positioned for loan growth more in line with historic levels in a recovering economy."
Horizon Bank, the third largest in Northwest Indiana by market share, has 15 future quarters of cash on hand with enough to cover the interest on all debt and the $0.15 dividend for nearly the next four years.
Based in downtown Michigan City, the bank has $6.1 billion in assets and 88 branches in Indiana and Michigan after its latest acquisition of 14 Huntington Bank Branches, the 15th acquisition it's completed since 2002, including its fifth in the last five years.
NWI Business Ins and Outs: Ramen District, Chick-fil-A, Good News Vintage, Tacos & Burritos Rancho Grande and Starbucks opening; The Room closed
On the move
WATCH NOW: Riding Shotgun with NWI Cops — Patrolling Lowell with Cpl. Aaron Crawford
Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.
Horizon Bank has expanded its footprint across the Midwest after finalizing a deal to acquire 14 Huntington Bank Branches, which TCF Financial Corp. had to divest as part of its acquisition of Ohio-based Huntington Bank.