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HBNC

Horizon BancorpNasdaqGS:HBNC Stock Report

Market Cap

US$839.1m

7D

-4.6%

1Y

34.6%

Updated

02 Dec, 2021

Data

Company Financials +
HBNC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends5/6

HBNC Stock Overview

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides a range of commercial and retail banking services.

Horizon Bancorp Competitors

Live Oak Bancshares

NasdaqGS:LOB

US$3.7b

Triumph Bancorp

NasdaqGS:TBK

US$3.1b

Old National Bancorp

NasdaqGS:ONB

US$2.9b

First BanCorp

NYSE:FBP

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for Horizon Bancorp
Historical stock prices
Current Share PriceUS$19.79
52 Week HighUS$21.13
52 Week LowUS$14.50
Beta1.23
1 Month Change2.59%
3 Month Change10.99%
1 Year Change34.63%
3 Year Change20.67%
5 Year Change12.83%
Change since IPO2,336.98%

Recent News & Updates

Nov 20

Horizon Bancorp: Attractively Valued With Prospects Of Balance Sheet Growth

Economic growth, team expansion, and limited Paycheck Protection Program forgiveness will likely drive loan growth next year. Improvements in the asset mix and an interest-rate hike will expand the net interest margin. Provisioning will likely return to a normal level next year. The December 2022 target price suggests a modest upside from the current market price. Further, Horizon Bancorp is offering a satisfactory dividend yield.

Sep 25
Horizon Bancorp's (NASDAQ:HBNC) Dividend Will Be Increased To US$0.15

Horizon Bancorp's (NASDAQ:HBNC) Dividend Will Be Increased To US$0.15

Horizon Bancorp, Inc.'s ( NASDAQ:HBNC ) dividend will be increasing to US$0.15 on 22nd of October. This makes the...

Shareholder Returns

HBNCUS BanksUS Market
7D-4.6%-4.5%-3.5%
1Y34.6%40.8%19.4%

Return vs Industry: HBNC underperformed the US Banks industry which returned 36.7% over the past year.

Return vs Market: HBNC exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is HBNC's price volatile compared to industry and market?
HBNC volatility
HBNC Average Weekly Movement3.6%
Banks Industry Average Movement3.7%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: HBNC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HBNC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1873788Craig Dwighthttps://www.horizonbank.com

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides a range of commercial and retail banking services. The company offers demand and time deposits. It also provides commercial, residential real estate, mortgage warehouse, and consumer loans.

Horizon Bancorp Fundamentals Summary

How do Horizon Bancorp's earnings and revenue compare to its market cap?
HBNC fundamental statistics
Market CapUS$839.08m
Earnings (TTM)US$87.56m
Revenue (TTM)US$234.02m

9.8x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HBNC income statement (TTM)
RevenueUS$234.02m
Cost of RevenueUS$0
Gross ProfitUS$234.02m
ExpensesUS$146.46m
EarningsUS$87.56m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.01
Gross Margin100.00%
Net Profit Margin37.42%
Debt/Equity Ratio114.4%

How did HBNC perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is Horizon Bancorp undervalued compared to its fair value and its price relative to the market?

42.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBNC ($19.79) is trading below our estimate of fair value ($34.65)

Significantly Below Fair Value: HBNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HBNC is good value based on its PE Ratio (9.8x) compared to the US Banks industry average (10.5x).

PE vs Market: HBNC is good value based on its PE Ratio (9.8x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: HBNC is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: HBNC's PB Ratio (1.2x) is in line with the US Banks industry average.


Future Growth

How is Horizon Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBNC's forecast earnings growth (1.8% per year) is below the savings rate (2%).

Earnings vs Market: HBNC's earnings (1.8% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: HBNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: HBNC's revenue (5.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: HBNC's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBNC's Return on Equity is forecast to be low in 3 years time (11.4%).


Past Performance

How has Horizon Bancorp performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBNC has high quality earnings.

Growing Profit Margin: HBNC's current net profit margins (37.4%) are higher than last year (31.4%).


Past Earnings Growth Analysis

Earnings Trend: HBNC's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: HBNC's earnings growth over the past year (34.4%) exceeds its 5-year average (24.2% per year).

Earnings vs Industry: HBNC earnings growth over the past year (34.4%) underperformed the Banks industry 43%.


Return on Equity

High ROE: HBNC's Return on Equity (12.4%) is considered low.


Financial Health

How is Horizon Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HBNC's Assets to Equity ratio (10.6x) is moderate.

Allowance for Bad Loans: HBNC has a sufficient allowance for bad loans (193%).

Low Risk Liabilities: 88% of HBNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: HBNC has an appropriate level of Loans to Assets ratio (48%).

Low Risk Deposits: HBNC's Loans to Deposits ratio (60%) is appropriate.

Level of Bad Loans: HBNC has an appropriate level of bad loans (0.8%).


Dividend

What is Horizon Bancorp current dividend yield, its reliability and sustainability?

3.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBNC's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: HBNC's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: HBNC's dividends per share have been stable in the past 10 years.

Growing Dividend: HBNC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), HBNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HBNC's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Craig Dwight (64 yo)

20.42yrs

Tenure

US$1,281,359

Compensation

Mr. Craig M. Dwight has been the Chief Executive Officer of Horizon Bancorp, Inc. and for its subsidiary, Horizon Bank, N.A. since July 1, 2001. Mr. Dwight served as the President of Horizon Bancorp, Inc....


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.28M) is below average for companies of similar size in the US market ($USD2.31M).

Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HBNC's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: HBNC's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Horizon Bancorp, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Horizon Bancorp, Inc.
  • Ticker: HBNC
  • Exchange: NasdaqGS
  • Founded: 1873
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$839.079m
  • Shares outstanding: 43.52m
  • Website: https://www.horizonbank.com

Number of Employees


Location

  • Horizon Bancorp, Inc.
  • 515 Franklin Street
  • Michigan City
  • Indiana
  • 46360
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:34
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.