Horizon improves, slightly

For months, Horizon Bancorporation Inc. has been working to acquire enough capital to satisfy regulators. Today the bank may have taken a step forward toward achieving that goal, announcing that it was profitable in the recently concluded quarter.

Horizon earned a net income of $117,000 during the three months ended June 30, 2010, largely due to the bank's ability to avoid write downs, as well as additions to the allowance for loan and lease losses.

Compare that to the bank's performance in the second quarter of 2009, when Horizon lost $6.9 million.

Indeed, Horizon's net interest margin actually fell over the year, from 3.09% in the second quarter of 2009 to 2.91% this year. Regardless, the bank managed to not only turn a profit, but also achieve “slight improvements” in its key capital ratios, a release said.

Horizon still has a ways to go before shaking regulatory pressure. In its filing with the Securities and Exchange Commission, the bank specified that “whether it ultimately survives as an independent entity will depend entirely on” its current stock offering, which can be extended into November of this year.

Charlie Conoley, president of the Bradenton-based bank, outlined his company's original capitalization plan to the Business Review back in May.