NasdaqGS:HBNC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


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

-7.5%

HBNC

-6.8%

US Banks

-1.9%

US Market


1 Year Return

-44.8%

HBNC

-30.6%

US Banks

13.1%

US Market

Return vs Industry: HBNC underperformed the US Banks industry which returned -30.6% over the past year.

Return vs Market: HBNC underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

HBNCIndustryMarket
7 Day-7.5%-6.8%-1.9%
30 Day-14.4%-7.7%-2.9%
90 Day-1.9%-7.2%8.2%
1 Year-42.6%-44.8%-28.0%-30.6%15.7%13.1%
3 Year-46.2%-50.4%-21.2%-27.7%38.4%29.1%
5 Year2.5%-9.0%15.3%1.1%89.3%68.0%

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

Valuation

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

24.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBNC ($9.54) is trading below our estimate of fair value ($12.66)

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 (6.5x) compared to the US Banks industry average (9.4x).

PE vs Market: HBNC is good value based on its PE Ratio (6.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HBNC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HBNC is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBNC's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: HBNC's earnings are forecast to decline over the next 3 years (-4.4% per year).

High Growth Earnings: HBNC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HBNC's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: HBNC's revenue is forecast to decline over the next 3 years (-0.2% 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 (8%).


Next Steps

Past Performance

How has Horizon Bancorp performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBNC has high quality earnings.

Growing Profit Margin: HBNC's current net profit margins (32.3%) are higher than last year (30.4%).


Past Earnings Growth Analysis

Earnings Trend: HBNC's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: HBNC's earnings growth over the past year (21.7%) is below its 5-year average (27.7% per year).

Earnings vs Industry: HBNC earnings growth over the past year (21.7%) exceeded the Banks industry -3%.


Return on Equity

High ROE: HBNC's Return on Equity (10%) is considered low.


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


Financial Institutions Analysis

Asset Level: HBNC's Assets to Equity ratio (8.8x) is low.

Allowance for Bad Loans: HBNC has a sufficient allowance for bad loans (196%).

Low Risk Liabilities: 85% 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 (68%).

Low Risk Deposits: HBNC's Loans to Deposits ratio (91%) is appropriate.

Level of Bad Loans: HBNC has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

5.03%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HBNC's dividend (5.03%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: HBNC's dividend (5.03%) is in the top 25% of dividend payers in the US market (4.89%)


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 (32.8%), 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 (44.6% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Craig Dwight (63 yo)

19.17yrs

Tenure

US$1,238,256

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 ($USD1.24M) is below average for companies of similar size in the US market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Dwight
Chairman & CEO19.17yrsUS$1.24m0.98%
$ 4.1m
James Neff
President2.67yrsUS$767.24k0.76%
$ 3.2m
Mark Secor
Executive VP11.67yrsUS$573.42k0.12%
$ 485.1k
Kathie DeRuiter
Executive Vice President6.67yrsUS$492.45k0.16%
$ 687.0k
Dennis Kuhn
Executive Vice President2.92yrsUS$471.70k0.060%
$ 252.3k
Dona Lucker
Shareholder Relations Officer & Executive Assistant5.67yrsno datano data
Todd Etzler
Senior VP3.5yrsno data0.022%
$ 91.3k
Daniel Buresh
Asst. Chief Accounting Officer & Asst. Treasurer21.67yrsno datano data

6.2yrs

Average Tenure

60yo

Average Age

Experienced Management: HBNC's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Dwight
Chairman & CEO19.17yrsUS$1.24m0.98%
$ 4.1m
Daniel Hopp
Lead Independent Director7.17yrsUS$70.00k0.16%
$ 652.4k
Susan Aaron
Independent Director25.67yrsUS$65.00k0.13%
$ 533.8k
Spero Valavanis
Independent Director20.67yrsUS$62.00k0.16%
$ 659.8k
Peter Pairitz
Independent Director19.67yrsUS$62.00k0.50%
$ 2.1m
James Dworkin
Independent Director16.92yrsUS$62.00k0.083%
$ 347.1k
Lawrence Burnell
Independent Director11.33yrsUS$64.00k0.077%
$ 324.3k
Steven Reed
Independent Director6.33yrsUS$68.00k0.057%
$ 236.8k
Michele Magnuson
Independent Director4.17yrsUS$60.00k0.10%
$ 432.3k
Eric Blackhurst
Independent Director2.92yrsUS$60.00k0.028%
$ 118.5k
Julie Freigang
Independent Director0.67yrno data0.0075%
$ 31.6k

7.2yrs

Average Tenure

64yo

Average Age

Experienced Board: HBNC's board of directors are considered experienced (7.2 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.


Recent Insider Transactions

Ownership Breakdown

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


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$418.561m
  • Shares outstanding: 43.87m
  • Website: https://www.horizonbank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBNCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1987
4WCDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1987

Biography

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 co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 06:30
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.