Horizon Bancorp in Michigan City, Ind., has restructured its balance sheet to improve its margins and financial returns.
The $3.3 billion-asset company said in a press release Wednesday that it prepaid $106 million of high fixed-rate debt with an average cost of 3.58% at a loss of $4.8 million. It offset some of the loss by selling $169 million in investment securities with an average yield of 1.94% at a net gain of $966,000.
Horizon also said it bought $62 million of securities with an expected average yield of 3.94%.
The company said it actions should widen its net interest margin by 27 basis points while also improving return on assets and return on equity.
Horizon in November bought the $55 million-asset CNB Bancorp in Attica, Ind.