Horizon Bancorp Q3 net income beats, partly due to higher gain on mortgage loan sales

By Reuters News


Overview

  • U.S. community bank's Q3 adjusted EPS beat analyst expectations

  • Net income for Q3 beat analyst estimates

  • Net interest income rose 11.6% yr/yr, driven by stable net interest margin


Outlook

  • Company says expectations for business remain largely unchanged despite interest rate outlook shift

  • Horizon expects continued low-volatility financial performance and capital compounding at peer-leading levels

  • Company says loan pipelines remain consistent, supporting measured, relationship-driven loan growth


Result Drivers

  • DISCIPLINED PRICING - Co attributed stable net interest margin to disciplined loan and deposit pricing and favorable cashflow redeployment

  • DEPOSIT GROWTH - Deposit balances increased, led by growth in non-time deposits and low deposit costs

  • MORTGAGE LOAN SALES - Higher gain on sale of mortgage loans due to increased volumes and wider margins


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

Beat

$0.56

$0.54 (4 Analysts)

Q3 Net Income

Beat

$28.67 mln

$27.33 mln (4 Analysts)

Q3 Net Interest Income

$65.16 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "hold."

  • Wall Street's median 12-month price target for Horizon Bancorp Inc is $23.00, about 16.8% above its October 20 closing price of $19.70

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 20 - Commerce Bancshares Q3 EPS beats, helped by loan growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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