Horizon Bancorp, Inc. (NASDAQ:HBNC) Q1 2024 Earnings Call Transcript

Mark Secor: Yeah, Brian. I don’t have the exact specifics, we’re seeing this quarter, $39 million come out of indirect, which — that’s one of the lowest yielding. And so those are going to pick up 3 to sometimes 4 basis points of overall yield or 300 basis points to 400 basis points on those loans. You kind of see from Lynn’s slide and what’s coming off of CRE, where around — maybe 200 basis point pickup on some of those that come rolling off. So I think that’s pretty much what we’re seeing when they’re rolling off.

Brian Martin: Got you. Okay. And then just one last one, Mark, just on the rate — on the margin. The last thing on that was just the, as far as the, I think you talked about maybe your outlook being a couple of cuts here over the balance of the year. Can you talk about just if we don’t see cuts or if they come later than expected, does that — how does that change kind of your big picture outlook, and I know you’ll update it as you get more details on the rate, but just if they don’t see cuts like you’re looking at, how do we — how does that influence kind of what you’ve already talked about guidance wise.

Mark Secor: Yeah, Brian. So, in the second quarter, we don’t, we’re not anticipating any rate cut. So the guidance we gave is without any rate cut. If we, in our modeling, we put one in July range and then at the end of the year, mid of last quarter. So, it has some slight impact. But overall, if we don’t see them, we’ll continue to see margin increase just from the repricing of the assets, specifically investments and indirect coming off, and then as we see higher rates for loans that are maturing. So we would continue to anticipate margin increase as we go into the third and fourth quarters. If we see a rate cut being still liability sensitive slightly, we would just see a little additional benefit.

Brian Martin: Got you. Okay. Perfect. That’s all I have. Thanks for taking my questions.

Mark Secor: Thanks, Brian.

Operator: Thank you. This concludes our question-and-answer session. I would now like to turn the conference back over to Thomas Prame for any closing remarks.

Thomas Prame: Thank you. And again, I appreciate all the questions today. And also thank you for participating in today’s earnings call. The team had a very solid first quarter with positive momentum in our key earnings metrics. Also heading into Q2, as stated, we’re very optimistic in the near term about our ability to continue to improve our financial performance and remain well positioned for potential lowering rates that will be added to our positive financial trajectory. Thank you again for your attendance today, and we look forward to our next update in July.

Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.