Horizon Bancorp today announced its unaudited results for the fourth quarter and year ended December 31, 2008. Net income for the year was $8.972 million, or $2.75 per fully diluted share, compared to $8.140 million, or $2.51 per fully diluted share, for the previous year. Net income for the fourth quarter of 2008 was $2.122 million, or $.64 per fully diluted share, compared to $2.010 million or $.62 per fully diluted share for the same quarter of the prior year and $1.373 million, or $.41 per fully diluted share, for the third quarter of 2008.
Craig M. Dwight, Horizon's Chief Executive Officer commented, We are pleased to report our ninth consecutive year of record earnings. Given the multiple challenges confronting the banking industry, including higher unemployment, increasing loan defaults, overall deterioration in the national and local economies and complexity and frequency of change in accounting rules, we are extremely proud of the effort put forth by the entire Company to exceed last year's performance.
As of December 31, 2008, stockholders’ equity totaled $103.4 million compared to $70.6 million at December 31, 2007. At December 31, 2008, the ratio of stockholders’ equity to total assets was 7.91% compared to 5.61% at December 31, 2007. Tangible equity to tangible assets was 7.37% at December 31, 2008 compared to 5.02% at December 31, 2007. Book value per common share at December 31, 2008 increased to $24.46 compared to $21.72 at December 31, 2007.
Last month, Horizon received an investment of $25 million through participation in the U.S. Department of Treasury's (Treasury) Capital Purchase Program. Under the program, the Treasury acquired 25,000 Series A shares of Horizon's Fixed Rate Cumulative Perpetual Preferred Stock that will pay a 5% per annum dividend for the first five years of the investment (which will total $1,250,000 a year) and 9% per annum thereafter (which will total $2,250,000 a year) unless Horizon redeems the shares. The preferred shares qualify as Tier I capital and are callable by Horizon after three years. The Treasury also received a warrant to purchase 212,104 shares of common stock of Horizon, with an exercise price of $17.68 per share.