Horizon Bancorp (HBNC) Q4 2024 Earnings Transcript

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Thursday, January 23, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Thomas Prame

• Executive Vice President and Chief Commercial Banking Officer — Lynn Kerber

• Executive Vice President and Chief Financial Officer — John Stewart

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Thomas Prame: Good morning, and convey you for joining us. We're pleased to stock our 4th fourth results, arsenic good arsenic the well-executed strategical initiatives outlined successful our past net call, which has improved Horizon's quality to present semipermanent worth to its shareholders. The result of the team's corporate effort successful the 4th resulted successful exceptional indebtedness growth, a importantly improved nett involvement income and margin, affirmative recognition metrics, and a restructured disbursal basal that volition payment the enactment moving forward. Page 4 displays Horizon's affirmative 4th fourth results reflecting the organization's committedness to continually beforehand our fiscal show done accretive actions focused connected shareholder value.

The 4th delivered continued maturation successful our halfway gross models, driven by a 5th consecutive 4th of expanded nett involvement margin. Additionally, the squad produced annualized indebtedness growth, excluding warehouse balances of 10% reflective of our committedness to dedicating resources to expanding profitable halfway commercialized relationships, portion continuing to trim the portfolio of lower-yielding car loans. As we determination into 2025, the squad remains assured connected its quality to find ample lending opportunities successful our section markets, portion maintaining the affirmative recognition trends that person been the cornerstone of spot for the organization.

Horizon's deposit portfolio displayed coagulated trends, with halfway deposits remaining level and the institution electing to let higher-priced transactional CD balances to rotation disconnected the equilibrium expanse to amended the organization's wide profitability. The granular and tenured deposit basal remained beardown and benefited the enactment with Fed complaint cuts during the quarter. Our 4th fourth results proceed to beforehand the fiscal wellness of the franchise done a much productive equilibrium sheet, delivering beardown nett involvement income and fantabulous recognition metrics. As communicated previously, the enactment expected the 4th fourth expenses to beryllium elevated successful prime areas of compensation, benefits, and third-party services.

Strategic initiatives successful these areas completed successful the 4th allowed the enactment to restructure our go-forward outgo structure, which volition pb to a much businesslike baseline successful 2025. John volition supply further penetration connected this taxable aboriginal successful the presentation. As I noted successful my opening comments, we're precise pleased with our results successful the 4th fourth and the fiscal positioning of the enactment heading into 2025. A cardinal portion of our optimism is the affirmative momentum of indebtedness maturation and prime recognition metrics. To supply further penetration connected our lending performance, I'll modulation the presumption to our Executive Vice President and Chief Commercial Banking Officer, Lynn Kerber.