HBNC - Horizon Bancorp stock slumps 18% as Q3 miss estimates

Horizon Bancorp ( NASDAQ: HBNC ) stock plummeted 18% on Thursday after Q3 results missed analysts estimates.

Adjusted EPS climbed to $0.55, compared to $0.52 in Q3 2021, but missed estimates by $0.05.

Net interest income was $53.4M, compared to $53.01M in the prior year period. Non–interest income in Q3 was $10.19M, taking total revenue to $63.58M.

"This continued strong loan growth led to the increase in net interest income and substantially offset headwinds from lower residential mortgage lending activity and lower wealth management fees, as well as the increase in cost of funds related to rapidly rising interest rates," said Chairman and CEO Craig Dwight.

The company noted that total loans, excluding Federal Paycheck Protection Program (PPP) loans and sold commercial participation loans, grew by an annualized rate of 14.5% YTD and an annualized rate of 7.8% Q/Q.

Net interest margin decreased to 3.13%, compared to 3.17% for Q3 2021.

Return on average assets was 1.24% for Q3.

Horizon added that during Q3, the continued steepening of the yield curve resulted in unrealized losses on available for sale investments of $161.8M, compared to unrealized losses of $122M at June 30.

Total deposit balances of $5.83B on Sept. 30, declined 0.25% Q/Q.

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