Horizon Financial Authorizes Buyback, Declares Quarterly Cash Dividend

BELLINGHAM, Wash.--(BUSINESS WIRE)--Sept. 24, 2003--Horizon Financial Corp. (Nasdaq:HRZB) announced today that its Board of Directors has authorized a stock buyback, allowing for the repurchase of up to 10% of the company's outstanding stock, or roughly 1.05 million shares. The plan runs for one year, and stock may be repurchased at management's discretion.

Under Horizon's most recent stock repurchase program, authorized in October 2002, the company repurchased 358,100 shares at an average price of $15.28.

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The parent of Horizon Bank also declared its quarterly cash dividend of $0.12 per share at yesterday's Board of Directors meeting. The company has been paying quarterly cash dividends for 16 years and has increased its dividend twice in the last ten months. The $0.12 dividend is payable November 3 to shareholders of record October 9, 2003.

"Both the authorization of another stock repurchase program and another cash dividend show our commitment to building shareholder value," stated V. Lawrence Evans, Chairman and CEO. "We strive to deploy capital in a manner that is most likely to grow earnings per share and build shareholder wealth."

In the quarter ended June 30, 2003, Horizon's earnings per share increased 19% to $0.31 per diluted share, from $0.26 per share a year prior. Net income increased 16% to $3.3 million, compared to $2.9 million in the first quarter last year. The company expects to report second quarter 2004 earnings and host a conference call at 1:30 pm PDT on October 23, 2003, with conference call details to follow.

Horizon Financial Corp. is an $823 million, state-chartered bank holding company headquartered in Bellingham, Washington. The Corporation's primary subsidiary, Horizon Bank, is a community commercial bank that operates 16 full-service retail offices, 3 commercial banking centers and 2 real estate loan centers throughout Whatcom, Skagit and Snohomish Counties.