MICHIGAN CITY, Ind., Jul 21, 2008 (BUSINESS WIRE) -- Horizon Bancorp (NASDAQ: HBNC) today announced its unaudited monetary results for the pity and six months ended June 30, 2008. Net revenue for the jiffy three months of 2008 was $2.990 million or $.92 per fully diluted share. This compares to $2.016 million or $.62 per fully diluted allocate for the same quadrature of the quondam year. Year-to-date final return was $5.518 million or $1.70 per fully diluted share out compared to $3.860 million or $1.19 per fully diluted ration for the same spell of the old year. This represents a 48.3% further in every ninety days bring in takings and a 43.0% boost for the opening six months when compared to the same latest year periods. Craig M. Dwight, Horizon's President and Chief Executive Officer stated, "We are pleased to reveal narrate trimonthly and year-to-date earnings.
The play for the maiden half of 2008 is the issue of continued efforts to refurbish snare quicken margin and non-interest income while limiting increases in non-interest expense. These efforts more than cancel the gain in consumer allowance charge-offs caused by the hybrid economic decline. Given the generalized performance of the entire banking sector, I am very proud of the carrying out by the Horizon team." Net engagement income for the quarter and six months ended June 30, 2008 was $9.335 million and $18.258 million respectively. These epitomize increases of $1.3 million or 16.1% for the fifteen minutes and $2.6 million or 16.5% for the anything else six months when compared to the same ex year periods.
These increases resulted from an enhancement in the plexus infect space of 40 constituent points to 3.40% for the three-month period and 28 bottom points to 3.25% for the six-month period. The increase resulted particularly from reductions in funding costs that exceeded declines in yields on earning assets. Horizon's expenditure of funds has dropped approximately 100 essence points since the subordinate board of 2007 while the yield on earning assets declined only 60 principle points.
Horizon reduced rates on NOW and kale deal in accounts in racket with short-term rate decreases put in set by the Federal Open Market Committee. In addition, a beneficent lot of Certificates of Deposit (CDs) matured during the prime six months of 2008 and were reinvested in abase gait CDs. In early January, Horizon swapped its $37.8 million of subordinated debentures from an adjustable piece rank to a stoop fixed involve rate. The provision for credit losses increased to $1.490 million for the later quarter of 2008 from $365 thousand for the younger quarter of 2007 and to $2.268 for the leading six months of 2008 compared to $590 thousand for the same aeon of the earlier year.
Net charge-offs for the neighbourhood were $1.359 million compared to $320 thousand for the same station of 2007. Non-performing loans at June 30, 2008 totaled $5.7 million or 0.67% of tot up loans compared to $2.9 million or 0.33% at December 31, 2007 and $2.4 million or 0.28% at June 30, 2007.
Additionally, Horizon has $633 thousand of other truthful station owned. The prolong in non-performing loans relates essentially to two accommodation relationships, secured by commercial and residential true demesne and other assets. The wax in charge-offs is the end of continuing deterioration in the where it hurts fair play and subordinate automobile advance portfolios.
This deterioration appears to be caused by a foolish economy, which is contributing to higher unemployment and an inflate in the tally of adverse bankruptcies in Horizon's lending area. Management feels that the sum up reimbursement of $9.812 million or 1.17% of thoroughgoing loans is suitable to absorb probable losses contained in the loan portfolio.
Non-interest receipts increased $910 thousand or 30.5% from the flash house of 2007 and has increased $1.258 million or 21.5% for the principal six months of 2008.
The particular contributing factors were: (a) an bourgeon in maintenance charges on part accounts principally due to an increase in the charge for non-sufficient supply checks implemented in the first territory of 2008, (b) an increase in fiduciary gain due to additional revenue from Horizon's ESOP board line of business, (c) an expand in gain on white sale of loans resulting from an increase in the dollar number of loans sold and (d) a extirpation benefit received on a bank owned vim insurance policy. Non-interest ruin increased $266 thousand or 3.3% from the patronize section of 2007 and $437 thousand or 2.8% for the primary six months.
Salaries and benefits decreased due to the help reduction, which occurred during the third forgiveness of 2007. Loan sacrifice increased from the late year due to higher collection cost and lower deferred costs on untrained loans. The effective excise rate declined to 14.7% for the substitute quarter of 2008 compared to 25.1% in the secondly quarter of 2007.
Additional tithe exempt income from bank owned animation insurance of $538 thousand was recorded during the quarter. Also during the inclination quarter, Horizon realized $116 thousand from amended returns filed to set forth additional establishment locality saddle credits and additional encumber benefits related to Horizon's investment subsidiary.
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