Horizon Bancorp (NASDAQ:HBNC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET

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Horizon Bancorp (NASDAQ:HBNC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, everyone, and welcome to the Horizon Bancorp conference call to discuss financial results for the three months ended June 30, 2020. [Operator Instructions]

Before turning the call over to management, I would like to remind everyone that today's call may contain forward-looking statements related to Horizon that may generally be identified as describing the Company's future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect Horizon's future results, please see the Company's most recent annual and quarterly reports filed on Forms 10-K and 10-Q. You should keep in mind that any forward-looking statements made by Horizon speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and management cannot predict these events or how they may affect the Company. Horizon has no duty to and does not intend to update or revise forward-looking statements after the date on which they are made.

To the extent non-GAAP financial measures are discussed in the call, comparable GAAP measures and reconciliations can be found in Horizon's April 29 news release, which is available on its website at horizonbank.com. Horizon also published an investor presentation on Wednesday afternoon, and it is available on the Company's website with information that will be addressed this morning.

Representing Horizon today is Chairman and CEO, Craig Dwight; as well as Executive Vice President and CFO, Mark Secor; President, Jim Neff; and Executive Vice President and Chief Commercial Banking Officer, Dennis Kuhn.

At this time, I would like to turn the conference over to Mr. Dwight.

Executive
Craig Dwight

Thank you, Kate, and good morning, and thank you for participating in Horizon Bancorp's earnings conference call. Our comments today will follow our investor presentation that was published after the close of trading on July 29.

So starting on Slide 4, we summarize and highlight what we believe was a very solid quarter during these unprecedented times, as evidenced by a 26.9% increase over the first quarter's earnings per share. These results were supported by good loan and deposit growth of 8% and 7% respectively, excellent expense management and record residential mortgage loan volume. In addition, during the quarter, we demonstrated our ability to effectively access the capital markets through the issuance of $60 million in subordinated debentures. This capital raise provided our holding company with a considerable cash cushion to protect the dividend to its common shareholders and provides us with the optionality on how to deploy capital in the future.

Slide 5 titled Seasoned Management Team: we are very proud of our entire Horizon Bank team and what they've accomplished. Slide 6 reflects our accomplishments and excellent history of financial performance over the past 17 years.

Slide 7 titled Diversified & Attractive