The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Horizon in Ind. sells more securities, divests mortgage warehouse business

Horizon Bancorp in Michigan City, Ind., reported a net loss in the fourth quarter after selling more underwater securities.

The $7.8 billion-asset company said in a press release that it lost $10.9 million in the quarter. It sold $332 million of investment securities at a $39.1 million pretax loss.

Horizon plans to repay about $200 million of FHLB maturities in March and April. The company said it should take less than four years to earn back the loss from the securities sales.

Horizon lost $25.2 million in the fourth quarter of 2023 after it sold $382.7 million of securities at a $31.6 million pretax loss and surrendered $112.8 million in bank-owned life insurance.

Separately, the company said it sold its mortgage warehouse business earlier this month.

The company also hired a new management team for its mortgage business. The leaders are implementing a more-effective sales program and secondary market platform.

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