Feb. 14--Horizon Bancorp, parent of Horizon Bank, has reported a 10.2 percent increase in 2008 profits, driven mainly by increases in net interest income.

Horizon Bank for the full year had net income of $8.97 million, or $2.78 per basic share, as compared to $8.14 million, or $2.54 per basic share, in 2007, bank officials said.

"We are pleased to report our ninth consecutive year of record earnings," Horizon Chief Executive Officer Craig Dwight said.

Fourth quarter profit also was up, with reported net income of $2.12 million, or 64 cents per share, as compared to $2.01 million, or 63 cents per share, in the fourth quarter of 2007, the company reported.

Horizon bank is headquartered in Michigan City and has 17 branches throughout the region.

In December, the bank received $25 million in federal bailout funds under the U.S. Treasury's Capital Purchase Program.

So far, 359 institutions nationwide have received a total of $195.3 billion under the program, according to Treasury figures.

Under the terms of the program, Horizon Bank must pay a dividend of $1.25 million per year on preferred bank stock the Treasury purchased. If it does not pay back the money within five years, the bank must pay yearly dividends of $2.25 million to the Treasury.

At the time Horizon Bank received the bailout funds, Dwight said it planned to use the money to expand lending to existing and new customers.

BANK BAILOUT TRICKLES DOWN TO MAIN STREET:

Here are banks with branches in the region that have received U.S. Treasury bailout funds since October:

JPMorgan Chase & Co. $25 billion

TCF Financial Corp. $361 million

MB Financial Inc. $196 million

First Midwest Bancorp Inc. $193 million

Horizon Bancorp $25 million

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