UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QSB
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1996
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to __________
Commission File Number 0-25096
HORIZON BANCORP, INC.
(Exact name of small business issuer as specified in its charter)
Texas 74-2412835
(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification
organization Number)
5800 North MoPac, Austin, Texas 78731
(Address of principal executive offices)
(512) 371-0700
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90
days.
Yes x No
State the number of Shares outstanding of each of the
issuer's classes of common equity, as of the latest date:
As of September 12, 1996, there were 1,387,757 shares of the
Registrant's common stock issued and outstanding.
Transmitional Small Business Disclosure Format:
Yes No x
<PAGE>
HORIZON BANCORP, INC. AND SUBSIDIARY
FORM 10-QSB
INDEX
Page No
PART I. Financial Information
Item 1. Consolidated Financial Statements:
Consolidated Statements of Financial Condition
as of April 30, 1996 and July 31, 1996
Consolidated Statements of Operations for the
Three Month Period Ended July 31, 1996 and 1995
Consolidated Statements of Cash Flows for the
Three Month Period Ended July 31, 1996 and 1995
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. Other Information
SIGNATURES
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
HORIZON BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
July 31, 1996 April 30, 1996
ASSETS
Cash and cash equivalents $ 19,344,242 $ 19,204,098
Federal funds sold 250,000 250,000
Investment securities 10,954,223 8,826,658
Residential mortgage loans
held for sale 474,452 2,066,897
Loans receivable - net 99,531,627 91,396,372
Accrued interest receivable 916,650 940,197
Foreclosed real estate --- ---
Accounts receivable 518,868 136,079
Federal Home Loan Bank of
Dallas stock 473,100 466,300
Premises and equipment - net 6,864,347 6,140,247
Goodwill, net of amortization 356,635 364,925
Other 839,919 1,137,922
Total Assets $140,524,063 $130,929,695
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $126,564,421 $117,652,564
Advances from FHLB of Dallas --- ---
Advance payments by borrowers
for taxes & insurance 800,523 482,397
Accrued interest payable 52,065 45,439
Other 1,478,092 1,554,072
Total Liabilities 128,895,101 119,734,472
STOCKHOLDERS' EQUITY
Serial preferred stock, par value
$.01 per share; 1,000,000 shares
authorized; no shares issued or
outstanding Common stock par value
$.01 per share; 4,000,000 shares
authorized; 1,386,757 shares issued
and outstanding 13,868 13,868
Paid in Capital 6,963,670 6,963,670
Retained earnings 4,731,205 4,279,707
Unrealized loss on available
for sale securities (79,781) (62,022)
Total Stockholders' Equity 11,628,962 11,195,223
Total Liabilities and
Stockholders' Equity $140,524,063 $130,929,695
See notes to consolidated financial statements
<PAGE>
HORIZON BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
July 31
1996 1995
Interest income:
Interest on loans $2,786,812 $2,421,904
Interest and dividends
on investments 252,642 204,701
Total interest income 3,039,454 2,626,605
Interest expense:
Interest on deposits 604,049 521,574
Interest on borrowed funds 597 ---
Total interest expense 604,646 521,574
Net interest income 2,434,808 2,105,031
Provision for
losses on loans 110,000 60,000
Net interest income after
provision for losses on loans 2,324,808 2,045,031
Non-interest income (expense):
Loan servicing 60,628 58,234
Loan origination, net 97,849 46,530
Other deposit and loan fees 416,745 282,654
Credit card fees 36,050 10,868
Gain on sale of loans 213,900 107,250
Gain on sale of
foreclosed real estate --- ---
Other 1,030 --
Total non-interest income 826,202 505,536
Non-interest expenses:
Compensation and benefits 1,177,644 903,173
Occupancy 187,973 148,869
Advertising and business
promotion 96,518 122,321
Legal and professional 102,887 122,815
Depreciation and amortization 130,863 100,109
Equipment rental and maintenance 95,612 87,587
Service bureau and processing
costs 100,178 64,700
FDIC insurance 64,689 45,729
General insurance 19,409 24,252
Regulatory 5,716 6,695
Office supplies and printing 75,629 77,272
Postage and courier costs 55,576 50,285
Telephone 32,848 30,523
Property and franchise taxes 42,912 36,353
Credit card operations 79,381 50,796
Other 64,554 42,305
Total non-interest expenses 2,332,389 1,923,784
See notes to consolidated financial statements.
<PAGE>
HORIZON BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS (con't)
(Unaudited)
Three Months Ended
July 31
1996 1995
Income before taxes $ 818,621 $ 626,783
Income tax expense
Federal 266,785 218,684
State 44,868 1,100
Total income tax expense 311,653 219,784
Net income $ 506,968 $ 406,999
Earnings per common share
Primary $ 0.35 $ 0.28
Weighted average shares
outstanding 1,455,565 1,455,565
Fully diluted $ 0.32 $ 0.26
Weighted average shares
outstanding 1,582,965 1,587,565
Dividends per share $ 0.04 $ 0.03
See notes to consolidated financial statements.
<PAGE>
HORIZON BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED
July 31
1996 1995
OPERATING ACTIVITIES
Net Income $506,968 $406,999
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities
Amortization of:
Goodwill 8,290 8,289
Deferred loan origination fees (163,076) (146,887)
Depreciation and amortization of
premises and equipment 164,697 130,645
Premiums and discounts on loans
and investments securities 3,339 (7,538)
Provisions for loan losses and losses
on other assets 110,000 60,000
Proceeds from the sale of loans 9,897,916 6,657,181
Net loss on sales of:
Loans (213,900) (107,250)
Real estate acquired through
foreclosures --- ---
Premises and equipment --- ---
Changes in assets and liabilities:
Accrued interest receivable 23,547 (90,546)
Accounts receivable and other assets (84,786) (62,198)
Accrued interest payable 6,626 5,457
Other liabilities (75,980) 224,148
Net cash provided by operating
activities 10,183,641 7,078,300
INVESTING ACTIVITIES
Purchase of U.S. Treasury
and other securities (1,482,946) (4,986,406)
Loan originations (36,240,006) (39,753,162)
Principal payments received on loans 20,315,320 27,484,788
Purchase of mortgage-backed securities --- (576,947)
Principal payments received on
mortgage backed securities 85,219 42,402
Purchase and improvement of branch
facility (835,486) ---
Improvement of property and purchase
of office equipment (53,311) (164,284)
Purchase of FHLB stock (6,800) (7,300)
Net cash used in investing activities (18,218,010) (17,960,909)
FINANCING ACTIVITIES
Net increase (decrease) in demand
deposits, NOW accounts money market
checking accounts and statement
savings accounts 4,955,773 9,237,050
Net increase (decrease) in
certificates of deposit 2,956,084 (2,723,049)
Net increase (decrease) in advances
from the FHLB --- (2,000,000)
Net increase (decrease)in advances by
borrowers for taxes and insurance 318,126 273,054
Payment of stockholders dividend (55,470) (41,603)
Net cash provided by (used in)
financing activities 8,174,513 10,191,550
Net increase (decrease) in cash
and cash equivalents 140,144 (691,059)
Cash and cash equivalents at
beginning of period 19,454,098 18,632,782
Cash and cash equivalents at
end of period $19,594,242 $17,941,723
See notes to consolidated financial statements.
<PAGE>
HORIZON BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements include the accounts
of Horizon Bancorp, Inc. (the "Company") and its wholly-owned subsidiary,
Horizon Bank & Trust, SSB (the "Bank"). The consolidated financial
statements are unaudited except for the consolidated statement of financial
condition at April 30, 1996. However, in the opinion of management, the
interim data includes all adjustments (which consists of normal recurring
accruals) necessary for a fair presentation of the consolidated financial
statements. Results for any interim period are not necessarily indicative
of results to be expected for the fiscal year. The financial statements
included herein have been prepared by the Company pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles (GAAP) have been condensed or omitted pursuant to such rules
or regulations.
2. INVESTMENT SECURITIES
The amortized cost and estimated market values of investment securities are
summarized as follows:
Gross Gross
Amor- Unreal- Unreal-
tized ized ized Fair Carrying
Cost Gains Gaines Value Value
At July 31, 1996
Available For Sale:
U.S. Treasury
Secur-
ities $ 2,787,281 $ --- $ (12,864) $ 2,774,417 $ 2,774,417
U.S. Government
Agency
Secur-
ities 6,851,668 20,698 (153,374) 6,718,992 6,718,992
Municipal
Secur-
ities 1,445,000 15,814 --- 1,460,814 1,460,814
$11,083,949 $36,512 $(166,238) $10,954,223 $10,954,223
At April 30, 1996
Available For Sale:
U.S. Treasury
Secur-
ities $2,490,174 $ --- $ (6,600) $2,483,574 $2,483,574
U.S. Government
Agency
Secur-
ities 6,437,333 25,366 (119,615) 6,343,084 6,343,084
$8,927,507 $25,366 $(126,215) $8,826,658 $8,826,658
The amortized cost and estimated market values of investment
securities at July 31, 1996 by contractual maturity are shown
below. Expected maturities will differ from contractual
maturities because borrowers may have the right to prepay
obligations with or without prepayment penalties.
Amortized Fair
Cost Value
At July 31, 1996
Due in one year or less $ 1,793,637 $ 1,789,117
Due from one year to five years 4,828,644 4,768,823
Due from five years to ten years 1,450,000 1,441,721
Due after ten years 3,011,668 2,954,562
Total $11,083,949 $10,954,223
3. LOANS
As of July 31, 1996 and April 30, 1996, the Company's loan
portfolio consisted of the following:
July 31 April 30
1996 1996
Commercial $ 12,818,398 $ 11,676,057
Real estate - permanent mortgages 68,648,996 61,492,247
Real estate - construction 44,792,192 42,645,377
Real estate - lot/lot
development loans 13,245,210 12,988,219
Consumer - credit cards 6,012,286 5,848,358
Consumer - other 4,636,561 4,187,679
Total gross loans 150,153,643 138,832,937
Net deferred loan costs/(fees) (322,694) (269,912)
Undisbursed portion of loans (27,900,922) (25,554,750)
Participations sold (21,668,689) (20,940,096)
Allowance for possible loan losses (729,711) (671,807)
Net loans $ 99,531,627 $ 91,396,372
Of the total allowance for loan losses at July 31, 1996 and April 30, 1996
approximately $709,000 and $661,000 respectively was not allocated
specifically to identified problem loans.
The effect of FASB Statement No. 114 as amended by FASB Statement No. 118
effective May 1, 1995 was not material to the financial
statements, and as such, has not been separately disclosed.
4. REGULATORY CAPITAL REQUIREMENTS
Pursuant to federal law, the Bank must meet separate regulatory capital
requirements. The Bank's FDIC capital requirements at July 31, 1996 are
as follows:
At July 31, 1996
(Dollars in Thousands)
Amount Percent
Leverage capital ratio:
Capital level $10,631 8.2%
Requirement 5,205 4.0
Excess $ 5,426 4.2%
Tier I risk based capital ratio:
Capital level $10,631 11.2%
Requirement 3,812 4.0
Excess $ 6,819 7.2%
Total risk based capital ratio:
Capital level (1) $11,350 11.9%
Requirement 7,624 8.0
Excess $ 3,726 3.9%
(1) Includes the Bank's general valuation allowance of
$719,000 which qualifies as supplemental capital.
5. COMMITMENTS AND CONTINGENT LIABILITIES
In the normal course of business, there are various outstanding
commitments to extend credit and letters of credit, which are not
reflected in the financial statements. Management does not
anticipate any material loss as a result of these transactions.
PART I Item 2
HORIZON BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The accompanying Consolidated Financial Statements includes
Horizon Bancorp, Inc. (referred to herein both separately and on
a consolidated basis as the "Company") and its wholly owned
subsidiary Horizon Bank & Trust, SSB (the "Bank"). All
significant intercompany transactions and balances are eliminated
in consolidation. The Company is a savings & loan holding
company which owns all of the capital stock of the Bank and has
no other material operations. The Company's results of
operations are primarily dependent on the difference or "spread"
between the average yield earned from loans, investment
securities and the average rate paid on deposits and borrowed
funds. The interest rate spread is affected by regulatory,
economic and competitive factors that influence interest rates,
loan demand and deposit flows. The Company is subject to
interest rate risk to the degree that its interest earning assets
mature or reprice at different times or on a different basis than
its interest bearing liabilities. The Company's net income is
also affected by the level of non-interest income such as the
gain on sale of loans, the gain on the sale of servicing rights,
deposit fees and the level of non-interest expenses, such as
compensation and benefits occupancy expenses, legal and
professional fees, data processing expenses, advertising and
business promotion and other general and administrative expenses.
FINANCIAL CONDITION
Comparison of Financial Condition as of July 31, 1996 to April
30, 1996. The Company's total assets at July 31, 1996 of $140.5
million increased by $9.6 million, or 7.3%, from $130.9 million
at April 30, 1996. This increase was due primarily to increases
in investment securities of $2.1 million and loans receivable,
including loans held for sale of $6.5 million.
The Company's total liabilities at July 31, 1996 of $128.9
million increased by $9.2 million, or 7.7% from $119.7 million at
April 30, 1996. This increase was due primarily to an increase
of $8.9 million in total deposits. The increase in deposits
reflects the Company's ongoing efforts to attract non-interest
bearing commercial checking accounts, NOW accounts, and money
market accounts as a significant source of deposits. In
addition, the Company's instituted a certificate of deposit
promotion which resulted in a $3.0 million increase in
certificates of deposit.
The Company's retained earnings at July 31, 1996 of $4.7 million
increased $451,000, or 10.5%, from $4.3 million at April 30,
1996. This resulted from earnings of $507,000 and the payment of
$56,000 in dividends to shareholders.
RESULTS OF OPERATIONS
Comparison of Operating Results for the Three Months Ended July
31, 1996 and July 31, 1995. The Company had net income of
$507,000 for the three month period ended July 31, 1996 as
compared to $407,000 for the three month period ended July 31,
1995. This increase is discussed in more detail in the following
analysis.
Interest Income. Interest income from loans increased $365,000,
or 15.1%, from $2.4 million for the three month period ended July
31, 1995 to $2.8 million for the three month period ended July
31, 1996. The increase was due to an increase in the average
loan portfolio balance of $22.0 million which was partially
offset by a decrease in the average yield from 12.6% to 11.3% for
the same respective periods. The decrease in the average yield
related primarily to a .75% increase in the Company's base
lending rate which is tied to the Wall Street Journal prime rate
index. A substantial portion of the Company's loan portfolio is
indexed to the Company's base lending rate as it changes. The
Company was also subjected to interest rate competition from
other lending institutions in its market which resulted in
reduced rates on new loan originations in order to stay
competitive. Interest and dividends on investments increased
$49,000, or 23.9%, from $205,000 for the three month period ended
July 31, 1995 to $253,000 for the three month period ended July
31, 1996. The increase was due primarily to an increase in
investment securities portfolio of $6.9 million. This was
partially offset by a decrease in the average interest bearing
balances at the Federal Home Loan Bank of Dallas. Due to market
conditions and a change in the type of investment securities, the
overall yield decreased from 8.1% for the three months ended July
31, 1995 to 5.7% for the three months ended July 31, 1996.
Interest Expense. Interest expense on deposit liabilities
increased $82,000, or 15.7%, from $522,000 for the three months
ended July 31, 1995 to $604,000 for the three months ended July
31, 1996. The increase was due primarily to an increase in the
average amount of interest bearing deposits from $60.2 million
for the three months ended July 31, 1995 to $75.1 million for the
three months ended July 31, 1996. This was partially offset by a
decrease in the average rate paid from 3.4% to 3.2% for the same
respective periods.
Provision for Loan Losses. The provision for losses on loans was
$110,000 for the three month ended July 31, 1996 and $60,000 for
the three months ended July 31, 1995. The Company's allowance
for loan losses was based on management's analysis of historic
loan losses, current economic conditions, the level of
non-performing loans and management's current belief that the
allowance for loan losses reflect an adequate reserve against
potential losses. Although the Company maintains its allowance
for loan losses at a level which it considers to be adequate to
provide for potential losses, there can be no assurance that
future losses will not exceed estimated amounts or that
additional provisions for loan losses will not be required in
future periods. In addition, the Company's determination as to
the amount of the allowance for loan losses is subject to review
by the regulatory agencies which can order the establishment of
additional general and specific allowances.
Non-Interest Income. Non-interest income increased $320,000 to a
total of $826,000 for the three months ended July 31, 1996
compared to $506,000 for the three months ended July 31, 1995.
Fees and charges related to loans and deposits increased
$185,000. Most of the increase was due to an overall increase in
deposit fees of $130,000 which was the result of an increase in
the number of personal transaction accounts of approximately
2,900 and an increase in the number of commercial transaction
accounts of approximately 700. Gain on the sale of loans
increased $107,000 to a total of $214,000 for the three months
ended July 31, 1996 compared to $107,000 for the three months
ended July 31, 1995. This increase resulted primarily from an
increased volume of sales of Small Business Administration (SBA)
guaranteed loans.
Non-interest Expenses. Non-interest expense increased $408,000
to a total of $2.3 million for the three months ended July 31,
1996 compared to $1.9 million for the three months ended July 31,
1995. Compensation and benefits increased $275,000 to a total of
$1.2 million for the three months ended July 31, 1996 compared to
$903,000 for the three months ended July 31, 1995. This increase
resulted primarily from a general increase in employee salary
levels, both for merit and as a response to a competitive job
market in the Central Texas area, and an increase in the
averagenumber of full time equivalent employees from 107 to 118.
In addition, incentive compensation associated with origination
of SBA loans increased approximately 20.0%. Service bureau and
processing costs increased $35,000 primarily due to the
substantial increase in the number of workstations accessing the
service bureau as well as a substantial increase in the
transaction volume. Depreciation and amortization expense
increased $31,000 primarily due to the opening of a new branch
and the relocation of a branch. Occupancy expense increased
$29,000 due primarily to the aforementioned opening and
relocation of branches. Credit card operations expense increased
$28,000 (expenses uniquely associated with credit card program
not included in other line items) due to a significant growth in
credit card accounts and balances.
Income Tax Expense. Income tax expense increased $92,000, or
41.8%, from $220,000 for the three months ended July 31, 1995 to
$312,000 for the three months ended July 31, 1996. The increase
was due to an increase in taxable income for the current period
versus the prior period.
Liquidity Requirements. Texas law specifically requires that the
Bank maintain a minimum of 10.0% of its assets in cash, balances
in a Federal Reserve Bank or passed through a Federal Home Loan
Bank or other depository institution to a federal reserve bank or
other readily marketable investments, including unemcumbered
federal government sponsored enterprise securities. At July 31,
1996 the Bank's regulatory liquidity ratio was 24.98%.
Regulatory Capital. The Bank continued to be in compliance with
all FDIC regulatory capital requirements at July 31, 1996. See
Note 4 to the Consolidated Financial Statements.
Asset Quality. Non-performing assets, which consist of
non-accrual loans, foreclosed assets, and repossessed assets,
decreased during the three months ended July 31, 1996 to $12,000
compared to $13,000 at April 30, 1996. The following table sets
forth information with respect to the Company's non-performing
assets:
At At
July 31 April 31
1996 1996
( Dollars in Thousands )
Non-accrual loans:
Residential real estate $ -- $ --
Commercial real estate -- --
Commercial business 12 13
Consumer -- --
Total non-accrual loans 12 13
Real estate owned and other assets -- --
Total non-performing assets $ 12 $ 13
Non-accrual loans as a percentage of
total net loans (1) .01% .01%
Non-performing assets as a percentage
of total assets .01% .01%
(1) Excludes deferred fees and discounts, valuation allowances,
loans in process and loans held for sale.
The following table sets forth an analysis of the Company's
allowance for loan losses for the periods indicated.
Three Months Ended
July 31
1996 1995
Balance at beginning of period $ 672 $ 734
Charge offs:
Residential real estate -- 92
Commercial real estate -- 26
Commercial business -- --
Consumer -- 3
Credit cards 63 --
Total charge offs 63 121
Recoveries
Residential real estate -- --
Commercial real estate -- --
Commercial business 11 1
Consumer -- --
Credit cards -- --
Total recoveries 11 1
Net charge offs (recoveries) 52 120
Provision charged to operation 110 60
Balance at end of period $ 730 $ 674
Ratio of net charge offs (recoveries)
during the period to average net loans
outstanding during the period (1) 0.05% 0.16%
Ratio of net charge offs (recoveries)
during the period to average
non-performing assets 433.33% 260.87%
(1) Excludes deferred fees and discounts, valuation allowances,
loans in process and loans held for sale.
PROPOSED REGULATORY ACTION REGARDING INSURANCE ASSESSMENTS
The deposits of the Bank are presently insured by the Savings
Association Insurance Fund (the "SAIF"), which together with the
Bank Insurance Fund (the "BIF"), are the two insurance funds
administered by the Federal Deposit Insurance Corporation (the
"FDIC"). Effective in the third quarter of 1995, the FDIC
revised the premium schedule for BIF-insured banks to provide a
range of .04% to .31% of deposits (as compared to the current
range of .23% to .31% of deposits for SAIF-insured institutions).
In addition, in November 1995, the FDIC further revised the
schedule to provide a range of 0% to .27% (with a minimum annual
premium of $2,000), effective January 1996. As a result, BIF
members generally pay significantly lower premiums than SAIF
members. While the magnitude of the competitive advantage of
BIF-insured institutions and its impact on the Bank's results of
operations cannot be determined at this time, the decrease in BIF
premiums could place the Bank at a material competitive
disadvantage should BIF members seek to price deposits higher or
loan products lower than SAIF members. The Bank currently
qualifies for the minimum SAIF premium level of .23% of deposits.
Proposed federal legislation provides for a one-time assessment
estimated to be .80% to .90%, to be imposed on all SAIF
assessable deposits as of March 31, 1995, including those held by
commercial banks, and for BIF deposit insurance premiums to be
used to pay the Financing Corporation ("FICO") bond interest on a
pro rata basis together with SAIF premiums in order to
recapitalize the SAIF and eliminate the disparity. The BIF and
the SAIF would be merged effective January 1, 1998. If the
legislation is enacted, it is anticipated the assessment would be
payable in the fall of 1996.
As part of the legislation, the Congress is considering requiring
all federal thrift institutions, such as the Bank, to either
convert to a national bank or a state-chartered depository
institution by January 1, 1998. In addition, the Company would
no longer be regulated as a thrift holding company, but rather as
a bank holding company.
Certain aspects of the legislation remain unresolved and
therefore no assurance can be given as to what extent it will
affect the Company and the Bank. In addition, the enactment of
such legislation may have the effect of immediately reducing the
capital of SAIF member institutions by the amount of the special
assessment. Nevertheless, management does not believe that this
one-time charge to the Bank, if incurred, will have a material
adverse effect on the Bank's overall financial condition.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - Previously reported.
Item 2. Change in Securities - Previously reported.
Item 3. Defaults upon Senior Securities - Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders -
None.
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits - Previously filed.
b. Reports on Form 8-K - None.<PAGE>
SIGNATURES
In accordance with the requirements of the Securities and
Exchange Act of 1934, the Registrant caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
HORIZON BANCORP, INC.
Registrant
Date: 9/13/96 By: /s/ Douglas B. Kadison
Douglas B. Kadison
President and Chief Executive
Officer
Date: 9/13/96 By: /s/ Paul A. Antrim
Paul A. Antrim
Executive Vice President and
Chief Financial Officer
<PAGE>
FINANCIAL DATA SCHEDULE
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] APR-30-1996
[PERIOD-START] MAY-1-1996
[PERIOD-END] JUL-31-1996
[CASH] 4,606,296
[INT-BEARING-DEPOSITS] 14,737,946
[FED-FUNDS-SOLD] 250,000
[TRADING-ASSETS] 0
[INVESTMENTS-HELD-FOR-SALE] 10,954,223
[INVESTMENTS-CARRYING] 0
[INVESTMENTS-MARKET] 0
[LOANS] 100,735,790
[ALLOWANCE] 729,711
[TOTAL-ASSETS] 140,524,063
[DEPOSITS] 126,564,421
[SHORT-TERM] 0
[LIABILITIES-OTHER] 2,330,680
[LONG-TERM] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 13,868
[OTHER-SE] 11,615,094
[TOTAL-LIABILITIES-AND-EQUITY] 140,524,063
[INTEREST-LOAN] 2,786,812
[INTEREST-INVEST] 252,642
[INTEREST-OTHER] 0
[INTEREST-TOTAL] 3,039,454
[INTEREST-DEPOSIT] 604,049
[INTEREST-EXPENSE] 597
[INTEREST-INCOME-NET] 2,434,808
[LOAN-LOSSES] 110,000
[SECURITIES-GAINS] 0
[EXPENSE-OTHER] 2,232,289
[INCOME-PRETAX] 818,621
[INCOME-PRE-EXTRAORDINARY] 506,968
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 506,968
[EPS-PRIMARY] 0.35
[EPS-DILUTED] 0.32
[YIELD-ACTUAL] 0
[LOANS-NON] 12,065
[LOANS-PAST] 535,030
[LOANS-TROUBLED] 0
[LOANS-PROBLEM] 95,234
[ALLOWANCE-OPEN] 671,807
[CHARGE-OFFS] 62,735
[RECOVERIES] 10,639
[ALLOWANCE-CLOSE] 729,711
[ALLOWANCE-DOMESTIC] 729,711
[ALLOWANCE-FOREIGN] 0
[ALLOWANCE-UNALLOCATED] 0
