Horizon expects mid-single digit organic growth in loans and deposits going forward
Company anticipates continued advancement in fee income and disciplined expense management
Horizon says its low-volatility, profitability-first growth model will drive shareholder value over time
Overview
U.S. regional bank's Q2 adjusted EPS and net income missed analyst expectations
Net interest income rose 14.7% yr/yr, with net interest margin expanding to 4.37%
Q2 results included a $3.1 mln pre-tax legal charge, impacting profitability
Result drivers
Net interest margin - Higher net interest margin, driven by disciplined loan and deposit pricing, favorable cash reinvestment, and commercial loan growth, supported net interest income
Non-interest income - Higher gains on sale of mortgage loans and increased interchange fees contributed to growth in non-interest income
Legal charge - Q2 expenses rose due to a $3.1 mln legal charge, impacting profitability
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Horizon Bancorp Inc is $21.00, about 2.9% above its July 21 closing price of $20.41
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
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