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Horizon to Sell Its MSR Portfolio

Horizon Bancorp here said it has entered into an agreement to sell its mortgage servicing rights in a deal scheduled to close before the end of this quarter.

Horizon Bank said the MSR portfolio has a book value of approximately $1 million. The Indiana bank said it expects to generate a pretax gain of about $550,000 from the sale of "substantially all" of its mortgage servicing rights asset. The bank did not name the proposed buyer.

The Indiana bank is a locally owned, independent bank holding company servicing northern Indiana and southwest Michigan. Horizon offers mortgage services throughout the Midwest.

Horizon earned $1.83 million, or $0.57 per share, in the second quarter of this year, up from $1.68 million, or $0.53 per share, in the second quarter of 2005. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com

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