Horizon Bank turned highest fourth-quarter profit in its 144-year history, earning record net income of $21.9 million in the last three months of 2020.
The Michigan City-based bank had made $20.3 million during the third quarter and $18.5 million during the fourth quarter of 2019. It brought in $0.50 in earnings per share in the fourth quarter, up from $0.46 per share in the third quarter and $0.41 per share at the same time in 2019.
“Horizon closed 2020 with record quarterly top– and bottom–line results, supported by continued strength in mortgage lending and other fee–generating businesses, the benefits of our work to deleverage and optimize returns on total earning assets, and favorable deferral trends and credit quality metrics,” Horizon Bank Chairman and CEO Craig M. Dwight said.
“Entering the new year with strong liquidity, capital and reserves, we see clear opportunities to enhance the bank’s operating efficiency, deepen in–market retail and commercial customer relationships, and help to strengthen our resilient Indiana and Michigan communities in 2021.”
The bank grew net interest income to a record $43.6 million in the fourth quarter, up from $43.4 million in the third quarter and $41.5 million in the fourth quarter of 2019.
Horizon Bank delivered a return on average assets of 1.49% and a return on average common equity of 12.79% in the fourth quarter. It grew mortgage-related non-interest income 138.6% year over year, increasing mortgage loan sales by $7.8 million in the fourth quarter.
It originated $186.1 million in mortgage loans during the final three months of 2020, a 63.3% year-over-year gain as the result of low interest rates and a strong housing market in Northwest Indiana. Horizon Bank's total non-interest income shot up 43.5% to $17.1 million year over year in the fourth quarter.
Horizon Bank's net earnings for 2020 was $68.5 million, up from $66.5 million in 2019.
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