Horizon Bancorp
Market Cap
US$767.7m
Last Updated
2020/02/16 23:38 UTC
Data Sources
Company Financials +
Executive Summary
Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides commercial and retail banking services.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Horizon Bancorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HBNC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.2%
HBNC
0.5%
US Banks
1.5%
US Market
1 Year Return
-1.6%
HBNC
12.1%
US Banks
20.1%
US Market
Return vs Industry: HBNC underperformed the US Banks industry which returned 12.1% over the past year.
Return vs Market: HBNC underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| HBNC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.2% | 0.5% | 1.5% |
| 30 Day | -8.1% | -1.3% | 1.4% |
| 90 Day | -7.8% | 1.2% | 8.7% |
| 1 Year | 1.1%-1.6% | 15.4%12.1% | 22.7%20.1% |
| 3 Year | 4.3%-2.5% | 25.2%16.2% | 50.1%40.5% |
| 5 Year | 91.4%71.2% | 75.9%55.9% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Horizon Bancorp's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Horizon Bancorp, Inc. Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next Year3 weeks ago | Simply Wall St
Horizon Bancorp, Inc.'s (NASDAQ:HBNC) Attractive Combination: Does It Earn A Place In Your Dividend Portfolio?1 month ago | Simply Wall St
How Does Investing In Horizon Bancorp, Inc. (NASDAQ:HBNC) Impact The Volatility Of Your Portfolio?Valuation
Is Horizon Bancorp undervalued compared to its fair value and its price relative to the market?
32.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HBNC ($17.07) is trading below our estimate of fair value ($25.42)
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 (11.2x) compared to the Banks industry average (12.6x).
PE vs Market: HBNC is good value based on its PE Ratio (11.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: HBNC is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: HBNC is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is Horizon Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HBNC's forecast earnings growth (4.6% per year) is above the savings rate (1.7%).
Earnings vs Market: HBNC's earnings (4.6% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: HBNC's earnings are forecast to grow, but not significantly.
Revenue vs Market: HBNC's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: HBNC's revenue (5.2% 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 (10.2%).
Next Steps
Past Performance
How has Horizon Bancorp performed over the past 5 years?
27.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HBNC has high quality earnings.
Growing Profit Margin: HBNC's current net profit margins (33.1%) are higher than last year (32%).
Past Earnings Growth Analysis
Earnings Trend: HBNC's earnings have grown significantly by 27.6% per year over the past 5 years.
Accelerating Growth: HBNC's earnings growth over the past year (25.3%) is below its 5-year average (27.6% per year).
Earnings vs Industry: HBNC earnings growth over the past year (25.3%) exceeded the Banks industry 12.1%.
Return on Equity
High ROE: HBNC's Return on Equity (10.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
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
Inventory Level: HBNC has a low level of unsold assets or inventory.
Debt Coverage by Assets: HBNC's debt is not covered by short term assets (assets are 0.2x debt).
Financial Institutions Analysis
Asset Level: HBNC's level of assets compared to its equity is low.
Allowance for Bad Loans: HBNC has a low allowance for bad loans.
Low Risk Liabilities: HBNC's liabilities are made up of primarily low risk sources of funding.
Loan Level: HBNC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: HBNC's loans are broadly funded by customer deposits.
Level of Bad Loans: HBNC has an appropriate level of bad loans (0.58%)
Next Steps
Dividend
What is Horizon Bancorp's current dividend yield, its reliability and sustainability?
2.81%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HBNC's dividend (2.81%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: HBNC's dividend (2.81%) 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 (30.1%), 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 (32.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Craig Dwight (62yo)
18.6yrs
Tenure
US$1,163,495
Compensation
Mr. Craig M. Dwight has been the Chief Executive Officer of Horizon Bancorp, Inc. (formerly, Horizon Bancorp). and its subsidiary, Horizon Bank, N.A. since July 01, 2001. Mr. Dwight served as the President ...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD1.16M) is below average for companies of similar size in the US market ($USD2.47M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 18.6yrs | US$1.16m | 0.91% $7.0m | |
| President | 2.1yrs | US$722.16k | 0.72% $5.5m | |
| Executive VP & CFO | 11.1yrs | US$515.18k | 0.098% $752.0k | |
| Executive Vice President | 6.1yrs | US$451.16k | 0.14% $1.1m | |
| Executive Vice President | 2.3yrs | US$429.68k | 0.038% $293.4k | |
| Shareholder Relations Officer & Executive Assistant | 5.1yrs | no data | no data | |
| Corporate Secretary & General Counsel | 0yrs | no data | 0.022% $166.4k | |
| Asst. Chief Accounting Officer & Asst. Treasurer | 21.1yrs | no data | no data |
6.1yrs
Average Tenure
59yo
Average Age
Experienced Management: HBNC's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 18.6yrs | US$1.16m | 0.91% $7.0m | |
| Lead Director | 6.6yrs | US$70.00k | 0.15% $1.1m | |
| Independent Director | 25.1yrs | US$65.00k | 0.13% $1.0m | |
| Independent Director | 20.1yrs | US$62.00k | 0.14% $1.1m | |
| Independent Director | 19.1yrs | US$62.00k | 0.46% $3.5m | |
| Independent Director | 16.3yrs | US$62.00k | 0.079% $608.6k | |
| Independent Director | 10.8yrs | US$64.00k | 0.074% $569.0k | |
| Independent Director | 5.8yrs | US$68.00k | 0.050% $385.9k | |
| Director | 3.6yrs | US$60.00k | 0.097% $742.8k | |
| Independent Director | 2.3yrs | US$60.00k | 0.024% $181.1k |
8.7yrs
Average Tenure
63.5yo
Average Age
Experienced Board: HBNC's board of directors are considered experienced (8.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HBNC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.4%.
Top Shareholders
Company Information
Horizon Bancorp, Inc.'s company bio, 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$767.736m
- Shares outstanding: 44.98m
- Website: https://www.horizonbank.com
Number of Employees
Location
- Horizon Bancorp, Inc.
- 515 Franklin Street
- Michigan City
- Indiana
- 46360
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HBNC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 1987 |
Biography
Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides commercial and retail banking services. The company offers demand and time deposits. Its loan portfolio comprises commercial, residential real estate, mortgage warehouse, and consumer loans. The company also provides corporate and individual trust and agency, investment management, and real estate investment trust services; and sells various insurance products. It operates through a network of 63 full service offices and 3 loan and deposit production offices in Northern and Central regions of Indiana, as well as Southern, Central, and Great Lakes bay regions of Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:38 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.