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Horizon Bancorp , Inc. Announces Strong Second Quarter 2021 Financial Results Including EPS of $ 0.50 investor.horizonbank.com/news-and-presentations/news/news-details/2021/Horizon-Bancorp-Inc.-Announces-Strong-Second-Quarter-2021-Financial-Results-Including-EPS-of 0.50 / default.aspx Company Release - 7/27/2021 - MICHIGAN CITY , Ind . , July 27 , 2021 ( GLOBE NEWSWIRE ) ( NASDAQ GS : HBNC ) - Horizon Bancorp , Inc. ( “ Horizon " or the " Company " ) announced its unaudited financial results for the three and six months ending June 30 , 2021 . HORIZON BANCORP " Horizon achieved strong earnings in the second quarter , along with increased non - interest income , stable net interest income , lower deposit costs and strong asset quality metrics , " Chairman and CEO Craig M. Dwight said . " With an improving commercial lending pipeline , and ample liquidity and capital , Horizon is very well positioned for loan growth more in line with historic levels in a recovering economy . We also continue to focus on disciplined management of our highly efficient operations and initiated plans to consolidate 10 locations this summer , reassigning employees to other open positions and investing savings into digital capabilities and opportunities in our growing Indiana and Michigan markets . We also announced the acquisition of 14 Michigan branches to extend our low - cost deposit franchise in a financially and strategically attractive transaction that is on schedule for completion during the third quarter . " Second Quarter 2021 Highlights • Net income grew to a record $ 22.2 million , up 8.6 % from the linked quarter and 51.5 % from the year - ago period . Diluted earnings per share ( " EPS " ) of $ 0.50 includes the $ 0.01 after - tax impact of expenses associated with Horizon's agreement to acquire 14 TCF National Bank branches , approximately $ 976 million in deposits and approximately $ 278 million in loans in a financially and strategically attractive extension of Horizon's low - cost deposit franchise in Michigan , announced in the quarter . EPS was $ 0.46 for the first quarter of 2021 and $ 0.33 for the second quarter of 2020 . • Pre - tax , pre - provision net income grew to a second - quarter record $ 24.5 million , up 0.9 % from the linked quarter and 3.2 % from the year - ago period . This non - GAAP financial measure is utilized by banks to provide a greater understanding of pre - tax profitability before giving effect to credit loss expense . ( See the " Non - GAAP Reconciliation of Pre - Tax , Pre - Provision Income " table below . ) • Net interest income was $ 42.6 million for the quarter , compared to $ 42.5 million for the first quarter of 2021 and $ 43.0 million for the second quarter of 2020. Reported net interest margin ( “ NIM " ) was 3.14 % and adjusted NIM was 3.13 % , with reported NIM declining by 15 basis points and adjusted NIM decreasing by four basis points from the first quarter of 2021. ( See the " Non - GAAP Reconciliation of Net Interest Margin " table for the definition of this non - GAAP calculation of adjusted NIM . ) An estimated seven basis points attributed to Federal Paycheck Protection Program ( " PPP " ) lending improved the margin , offset by an estimated 21 basis point compression attributed to excess liquidity held during the quarter , for both NIM and adjusted NIM . • Horizon's in - market consumer and commercial deposit relationships , combined with strategic pricing moves to manage deposit growth and runoff of higher - priced time deposits , contributed to continued improvement in the cost of interest bearing liabilities , which declined to 0.45 % in the quarter , compared to 0.50 % in the first quarter of 2021 and 0.74 % in the second quarter of 2020 . • Non - interest expense was $ 33.4 million in the quarter , or 2.18 % of average assets on an annualized basis , compared to $ 32.2 million , or 2.20 % , in the first quarter of 2021 and $ 30.4 million , or 2.18 % , in the second quarter of 2020 . • The efficiency ratio for the period was 57.73 % compared to 57.03 % for the first quarter of 2021 and 56.23 % for the second quarter of 2020. The adjusted efficiency ratio was 57.45 % compared to 57.97 % for the first quarter of 2021 and 56.49 % for the second quarter of 2020. ( See the " Non - GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio " table below . ) • Horizon experienced an increased return on average assets ( " ROAA " ) of 1.45 % and return on average common equity ( " ROACE " ) of 12.59 % in the quarter , as well as adjusted ROAA of 1.46 % and adjusted ROACE of 12.61 % , excluding the impact of acquisition expenses and prepayment penalties , net of tax , and death benefits on bank owned life insurance . ( See the " Non - GAAP Reconciliation of Return on Average Assets " and the " Non - GAAP Reconciliation of Return on Average Common Equity " tables below . ) 1/25