Horizon Bank earned $20.2 million in profit in the third quarter, which was up from $14.6 million in the second quarter but slightly down from $20.5 million in the third quarter of 2019.
The Michigan City-based bank made 46 cents per share in the third quarter, as compared to 33 cents per share in the second quarter and 46 cents per share in the third quarter of 2019.
“Horizon is successfully navigating through these challenging times, thanks to our team’s unwavering focus on our communities, customers and our culture of accountability and operating discipline,” Chairman and CEO Craig Dwight said. “In the third quarter, we saw a healthy recovery in earnings and meaningful growth in pre–tax, pre–provision income, as Horizon maintained sound asset quality metrics and continued to conservatively build reserves, tightly managed operating expenses, stabilized net interest income and margin, and benefited from very strong performance from our mortgage business. In addition, in future periods, we expect to benefit from efforts initiated in the early fourth quarter to deleverage and optimize returns on earning assets.”
The bank grew net income to $26.7 million in the third quarter, as compared to $23.7 million in the second quarter and $24.9 million in the third quarter of 2019. It delivered a return on average assets of 1.4% for the quarter, as well as a record gain on mortgage loan sales of $8.8 million. That's up 33.1% from the second quarter and 226.2% up from the third quarter of 2019.
Horizon Bank originated $207.1 million in mortgage loans during the third quarter, which was down 18.1% compared to the second quarter but up 71% year-over-year.
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