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