Horizon Bancorp Reports Mixed Q1 2024 Results, Beating EPS Estimates but Missing Revenue Expectations

Horizon Bancorp posts mixed Q1 2024 results, beating EPS but missing revenue. Strong loan growth, improved net interest margin, and excellent asset quality position the regional bank for future success.

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Horizon Bancorp Reports Mixed Q1 2024 Results, Beating EPS Estimates but Missing Revenue Expectations

Horizon Bancorp Reports Mixed Q1 2024 Results, Beating EPS Estimates but Missing Revenue Expectations

Horizon Bancorp (NASDAQ:HBNC) reported its financial results for the first quarter of 2024, delivering a mixed performance. The company posted GAAP earnings per share (EPS) of $0.32, surpassing analyst estimates by $0.01. However, Horizon Bancorp's revenue of $53.22 million fell short of expectations by $1.16 million, representing a 3.0% decrease year-over-year.

The company's reported revenue of $53.22 million corresponds to the Zacks Consensus Estimate of $53.9 million, resulting in a surprise of -1.27%. Despite the revenue miss, Horizon Bancorp managed to deliver an EPS surprise of +6.67%, with the consensus EPS estimate being $0.30.

Horizon Bancorp's net interest margin showed improvement, increasing to 2.50% compared to 2.43% in the linked quarter. Net interest income for the quarter stood at $43.3 million, up from $42.3 million in the previous quarter. The company also experienced growth in its commercial loan portfolio, with an 11.2% annualized increase, including $22.8 million in new equipment finance production and a $52.0 million rise in other commercial loans.

Total loans at the end of the quarter reached $4.62 billion, reflecting an 18.2% annualized growth. Horizon Bancorp maintained excellent asset quality, with net charge-offs representing a mere 0.01% of average loans and delinquent and non-performing loans at 0.33% and 0.41%, respectively. The company's expenses were well-managed and remained at the lower end of guidance.

Why this matters: Horizon Bancorp's Q1 2024 results provide insights into the company's financial health and growth trajectory. The mixed performance, with a beat on EPS but a miss on revenue, highlights the challenges and opportunities faced by regional banks in the current economic environment.

Horizon Bancorp's CEO, Craig M. Dwight, commented on the results, stating, "We are pleased with our first quarter performance, which demonstrates our ability to navigate the challenges and capitalize on opportunities in the market. Our strong loan growth, improved net interest margin, and excellent asset quality position us well for the future." The company remains focused on expanding its equipment finance and residential lending businesses while maintaining robust credit quality metrics.

Key Takeaways

  • Horizon Bancorp Q1 2024 EPS beat estimates, but revenue missed
  • Net interest margin improved, and commercial loan portfolio grew 11.2%
  • Total loans reached $4.62B, reflecting 18.2% annualized growth
  • Asset quality remained excellent, with low net charge-offs and delinquencies
  • CEO cited ability to navigate challenges and capitalize on opportunities