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HORIZON BANK ANNOUNCES YEAR-END RESULTS -- EARNINGS INCREASE 21 PERCENT

 BELLINGHAM, Wash., April 28 /PRNewswire/ -- Horizon Bank (NASDAQ: HRZB) announced fiscal year-end results, with earnings for the year up 21 percent for the period ended March 31, 1993.
 V. Lawrence Evans, president, said earnings for the quarter increased 19 percent to $1.86 million, or 32 cents per share, up from $1.56 million and 27 cents per share in the same quarter one year ago. Total revenue for the quarter was $9.35 million, up from $9.00 million, including interest income of $8.99 million versus $8.54 million. Per-share amounts have been adjusted for the 15-percent stock dividend declared March 23, 1993.
 For the year, earnings increased 21 percent to $7.01 million, or $1.22 per share, up from $5.80 million and $1.02 per share. Total revenue for the year was $35.72 million compared with $34.85 million, including interest income of $34.20 million versus $33.33 million for the same quarter one year ago.
 Loan demand in the bank's three-county market was slightly down for the quarter, largely due to harsh weather during January and February. Total loan volume during the quarter was $21.34 million compared to $34.00 million for the same quarter last year. The pace for the year was very busy however, with a record $134.67 million in total loans for the year ended March 31, up 23 percent from $109.52 million one year ago. Not reflected in these totals are over $44.9 million in loan modifications -- existing portfolio loans that were also refinanced.
 At the same time, the bank maintained the high quality of its asset base. As of March 31, the bank had no nonperforming loans, or 0.00 percent of assets. This extremely low rate compares quite favorably with the Washington state savings bank average of 1.35 percent and the national savings bank average of 3.51 percent.
 Horizon's assets, deposits and stockholders' equity showed steady growth during the period as well. Stockholders' equity rose to $59.16 million, or 15.01 percent of assets.
 The bank's profitability also improved, supported by increasing interest rate spreads. For the quarter, Horizon's interest rate spread rose to 4.74 percent, up from 3.83 percent for the same quarter one year ago. For the year, the bank's interest rate spread increased to 4.21 percent, up from 3.54 percent.
 "The steep yield curve created a very favorable interest rate environment for the bank," commented Evans. "This, coupled with strong loan demand and further gains in operating efficiency helped make this year one of the best in the bank's history."
 For the quarter and the year, Horizon Bank achieved ROAs of 1.91 percent and 1.85 percent, respectively, up from 1.75 percent and 1.67 percent, respectively, for the same periods one year ago. In a business where a 1.00-percent ROA is considered good, this achievement is a testament to Horizon Bank's consistent profitability and March 31 marks the 26th consecutive quarter since its initial public offering in August 1986 in which Horizon's ROA was above this benchmark of solid performance.
 During the quarter, Horizon Bank's board of directors declared a 15-percent stock dividend, payable May 25 to stockholders of record May 4. Per-share amounts have been adjusted for the 15-percent stock dividend.
 The bank also made an additional accrual to cover the cost of complying with the Financial Accounting Standards Board (FASB) ruling No. 109. This ruling deals with accounting for income taxes and became effective with the year ended March 31.
 "It was a very good year," said Evans. "The bank surpassed many of its goals. We thank our customers and stockholders for their loyal support."
 Horizon Bank is a $394-million, state-charted, FDIC-insured savings bank.
 HORIZON BANK
 SELECTED FINANCIAL HIGHLIGHTS
 Three Months Twelve Months
 Ended March 31: 1993 1992 1993 1992
 Interest income $8,991,585 $8,538,337 $34,202,404 $33,326,899
 Interest expense 3,883,736 4,457,618 16,398,530 18,783,782
 Net interest
 income 5,107,849 4,080,719 17,803,874 14,543,117
 Provision for
 loan losses 414,671 387,862 408,736 877,612
 Net interest income
 after provision for
 loan losses 4,693,178 3,692,857 17,395,138 13,665,505
 Non-interest income 362,969 463,289 1,521,454 1,527,083
 Non-interest
 expense 1,852,426 1,862,201 7,193,999 6,701,961
 Income before
 provision for
 income taxes 3,203,721 2,293,945 11,722,593 8,490,627
 Provision for
 income taxes 1,041,107 734,062 3,819,467 2,686,018
 Net income before
 cumulative effect
 of change in
 accounting
 principle 2,162,614 1,559,883 7,903,126 5,804,609
 Cumulative effect
 of partial
 implementation
 of FASB No. 109 298,000 0 889,000 0
 Net income 1,864,614 1,559,883 7,014,126 5,804,609
 Earnings per
 share (EPS) 0.32 0.27(A) 1.22 1.02(A)
 EPS before
 accounting change 0.37 0.27(A) 1.38 1.02(A)
 Weighted average
 shares
 outstanding 5,790,050 5,700,360(A) 5,739,480 5,676,591(A)
 Return on
 assets (pct) 1.91 1.75 1.85 1.67
 Return on equity (pct) 12.78 11.85 12.46 11.36
 Interest rate
 spread (pct) 4.74 3.83 4.21 3.54
 Net interest
 margin (pct) 5.45 4.63 4.90 4.39
 At Mar. 31, At March 31,
 1993 1992
 Assets $394,167,986 $363,275,013
 Loans receivable, net 314,540,381 291,050,845
 Nonperforming loans 0 23,627
 Loan loss reserve 2,626,348 2,217,612
 Deposits 328,051,576 303,322,760
 Stockholders' equity 59,164,320 53,387,410
 Stockholders' equity-to-assets (pct) 15.01 14.70
 Stockholders' equity-to-deposits (pct) 18.04 17.60
 Total shares outstanding 5,804,744 5,712,017(A)
 Book value per share $10.19 $ 9.35(A)
 (A) Restated for five-for-four stock split declared June 23, 1992, and 15-percent stock dividend declared March 23, 1993.
 -0- 4/28/93
 /CONTACT: V. Lawrence Evans, president, or David Eldred, Investor Relations, both of Horizon Bank, 206-733-3050/
 (HRZB)


CO: Horizon Bank ST: Washington IN: FIN SU: ERN

LM -- SE002 -- 1790 04/28/93 08:51 EDT
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