Horizon Bancorp Inc. /IN/ (NASDAQ:HBNC), a state commercial bank headquartered in Michigan City, Indiana, announced on Tuesday that its Board of Directors has approved a quarterly dividend. The company will pay $0.16 per share to its stockholders of record as of October 4, 2024. The dividend is scheduled for payment on October 18, 2024.
This declaration follows Horizon Bancorp's consistent practice of returning value to its shareholders and reflects the company's financial stability and commitment to its dividend policy. The bank, with its primary operations in the state of Indiana, has a history of providing regular dividends, which is often seen as a sign of a company's strong financial health and its management's confidence in the future.
The announcement, filed with the Securities and Exchange Commission (SEC) on Wednesday, is a routine disclosure for the bank, which is required to inform its shareholders and the public of significant corporate events. Dividend payouts are subject to the company's performance and are often reviewed by the board quarterly.
It is important to note that this news is based on Horizon Bancorp's recent SEC filing. The company has not issued any additional statements or provided further details beyond the dividend announcement. As with all investments, shareholders are advised to consider the full range of information available when making investment decisions.
Horizon Bancorp's common stock is traded on the NASDAQ Stock Market under the ticker symbol HBNC. The company's decision to declare a dividend is part of its financial management strategy and is aligned with its goal of maximizing shareholder value while maintaining a strong capital position to support ongoing and future business operations.
In other recent news, Horizon Bancorp's second-quarter performance exceeded expectations, marked by significant net interest margin expansion and controlled operating expenses.
The bank reported sequential revenue growth, strong loan performance, and solid credit quality. Piper Sandler, in response to these developments, increased Horizon Bancorp's price target from $13 to $18, while maintaining a neutral rating on the stock.
Horizon Bancorp's fee income rebounded, and credit trends remained favorable, indicating robust organic loan growth. The bank anticipates continued growth for the remainder of the year, driven by robust markets, loan growth, and core deposits. However, it acknowledges the offsetting impact of hiring and related expenses.
Piper Sandler's analysis suggests potential benefits for Horizon Bancorp from anticipated Federal Reserve rate cuts in the second half of 2024 and into 2025. Consequently, Piper Sandler raised its earnings estimate for 2024 to $1.40, marking a 3% increase, while keeping its 2025 earnings estimate steady at $1.65.
InvestingPro Insights
Horizon Bancorp Inc. /IN/ (NASDAQ:HBNC) continues to demonstrate its commitment to shareholders with its recent dividend announcement. According to InvestingPro data, the company boasts a market capitalization of $707.26 million and a dividend yield of 3.99%, which is competitive in the industry. The company's P/E ratio stands at 37.24, reflecting a premium valuation in the market. Notably, Horizon Bancorp has raised its dividend for 8 consecutive years and has maintained dividend payments for 38 consecutive years, underscoring its reliability for income-focused investors.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, signaling potential growth and profitability. The bank's strong performance is also reflected in its price total return, with a notable 60.34% increase over the last year. Despite concerns about weak gross profit margins, the company's consistent dividend policy and positive return on assets of 0.24% suggest a solid financial footing.
For those considering an investment in Horizon Bancorp, it's worth exploring the additional 11 InvestingPro Tips available at https://www.investing.com/pro/HBNC, which provide deeper insights into the company's performance and future outlook. As always, investors should review the full range of information available to make well-informed decisions.
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