Core Viewpoint - Horizon Bancorp (HBNC) has shown modest performance over the past year, with a gain of only 1% [1] Group 1: Financial Performance - The company raised capital last year to support a repositioning of its balance sheet [1] - This capital raise significantly increased its run-rate net interest income (NII) [1] - The company is now well positioned for future growth [1]

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MICHIGAN CITY, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) Horizon Bancorp, Inc. (“Horizon” or the “Company”) announced that James B. Dworkin will retire from the Board of Directors effective at the expiration of his current term on May 7, 2026. Mr. Dworkin provided written notice of his decision on January 20, 2026, which was accepted by the Board of Directors on that same day. Also, in an unrelated action, on January 20, 2026, Julie S. Freigang submitted notice of her resignation from the Bo ...

MICHIGAN CITY, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) Horizon Bancorp, Inc. (“Horizon” or the “Company”) announced that James B. Dworkin will retire from the Board of Directors effective at the expiration of his current term on May 7, 2026. Mr. Dworkin provided written notice of his decision on January 20, 2026, which was accepted by the Board of Directors on that same day. Also, in an unrelated action, on January 20, 2026, Julie S. Freigang submitted notice of her resignation from the Bo ...

Our relationship-based deposit portfolios remained resilient in the quarter with predicted outflows within higher cost non-core transactional accounts as outlined in our balance sheet restructuring plan. Additionally, the combined relationship-based fee income categories of service charges, wealth, card and mortgage income performed well and an increase from the third quarter, and expenses outside of the transaction-related activities remain well managed and aligned with our internal and market expectations ...

Core Insights - The company is optimistic about its financial positioning heading into 2025, driven by positive loan growth and quality credit metrics [1][4][30] - Strategic initiatives completed in the quarter have restructured the cost base, leading to a more efficient operation moving forward [1][4][22] Financial Performance - The fourth quarter showed strong results with a net interest margin increase of 31 basis points to 2.97%, driven by strategic cash redeployment and a reduction in higher-cost deposits [14][16] - Total loans held for investment, excluding mortgage warehouse, grew by $123 million, representing a 10% annualized growth, primarily in core commercial lending segments [5][6] - The company reported a net loan growth of $408 million for the year, reflecting a 9% increase for 2024 [5] Credit Quality - Commercial credit quality metrics are performing well, with past due loans greater than 30 days at 10 basis points and a non-performing loan ratio declining to 19 basis points [7][10] - The allowance for credit losses decreased by approximately $900,000 to $52 million, resulting in an ACL-to-loan ratio of 1.07% [11] Deposit Trends - The deposit portfolio showed stability, with core deposits remaining flat and a strategic reduction in higher-cost CDs to improve profitability [2][12] - The company anticipates low single-digit growth in deposit balances, subject to typical seasonality [25] Strategic Initiatives - The company executed several key initiatives aimed at strengthening the balance sheet and improving long-term profitability, including the sale of its mortgage warehouse division [22][23] - The company plans to focus on organic growth in its core commercial lending segments, with expectations for continued loan growth in 2025 [30][66] Outlook for 2025 - The company expects loan growth to be in the mid-single-digit range for the full year, with a continued runoff of lower-yielding indirect auto loans [24][25] - Full-year 2025 net interest income is projected to grow in the mid-teens, primarily driven by net interest margin expansion [26][27] - The effective tax rate for 2025 is expected to be in the mid-teens, reflecting a stronger outlook for pre-tax income [28]

As our third quarter results displayed, the company has positive momentum on many fronts through a more productive balance sheet, revenue growth and excellent credit metrics. The quarter did reflect slightly elevated expenses that as John will discuss in his presentation, we expect to transition back to more normalized levels as we approach 2025. Additionally, within today's presentation, John will also be sharing detail on strategic actions initiated in the fourth quarter, which will further advance our ef ...

Financial Data and Key Metrics Changes - Horizon Bancorp reported an annualized return on average assets above 1.6% and a return on average equity approaching 16% for Q4 2025, with a net interest margin of 4.29% [4][15] - The net interest margin increased by 77 basis points from the previous quarter, marking the ninth consecutive quarter of expansion [15][16] - Total loans reached $4.9 billion, an increase of $60.7 million from the previous quarter, with commercial loans growing by $76 million, representing 9% annualized growth [7][8] Business Line Data and Key Metrics Changes - Commercial relationship lending remains the primary strategy, with modest declines in consumer loans and residential mortgages, which are primarily sold into the secondary market [7][8] - The commercial loan portfolio is well-diversified, with 28% in commercial and industrial and 72% in commercial real estate [7] - Credit quality metrics remain strong, with substandard loans decreasing to 1.22% of total loans, down from 1.31% in the previous quarter [9][10] Market Data and Key Metrics Changes - The deposit portfolio shows strength, with non-interest-bearing balances up year over year, reflecting improved cost structure [12][13] - The company is well-positioned in attractive markets in Michigan and Indiana, with a focus on organic deposit funding to support loan growth [12][14] Company Strategy and Development Direction - Horizon aims to create sustainable long-term value for shareholders through a disciplined operating model and consistent profitable growth [6][24] - The company plans to leverage its community banking model and expand its branch network selectively in key markets [60][61] - The focus remains on organic growth rather than acquisitions, although the company is open to opportunistic talent additions [41][44] Management's Comments on Operating Environment and Future Outlook - Management views the outlook for 2026 as slightly more favorable than previously estimated, with expectations for mid-single-digit growth in loans and deposits [28][21] - The company anticipates stable net interest margins and continued strong performance metrics, with a focus on maintaining a conservative credit culture [15][23] - Economic conditions and credit quality trends will influence future provision expenses [11] Other Important Information - Non-interest income for Q4 was reported at $11.5 million, with a year-over-year increase in total fee income driven by wealth management and mortgage fees [18] - Expenses for the quarter were in line with expectations at $40.6 million, reflecting seasonal increases and legal fees related to legacy items [19] Q&A Session Summary Question: Outlook for 2026 and potential risks - Management sees a more optimistic outlook for net interest income, with organic core deposit growth being a key lever for upside [28][30] Question: Loan growth and consumer loan performance - The company does not plan to push for accelerated growth in consumer loans, focusing instead on commercial lending [31][32] Question: Asset quality and substandard loans - Management indicates that increases in substandard loans are modest and not reflective of sector-wide stress, with overall metrics remaining strong [33][34] Question: Margin drivers and loan pricing - New loan originations are yielding above 6.5%, while cash flows from the portfolio are below 6%, providing a favorable margin environment [37][39] Question: Capital deployment priorities - The company will focus on organic growth opportunities while remaining disciplined in capital deployment decisions [41][42] Question: Fee income drivers for 2026 - Fee income growth is expected to be balanced across various segments, with no single area driving significant changes [50][52] Question: Commercial pipeline and seasonality - The commercial loan pipeline is strong, though seasonality may affect quarterly fluctuations in originations [72]

Horizon Bancorp (NasdaqGS:HBNC) Q4 2025 Earnings call January 22, 2026 08:30 AM ET Company ParticipantsTerry McEvoy - Managing DirectorJohn Stewart - EVP and CFOLynn M. Kerber - EVP and Chief Commercial Banking OfficerMark Secor - EVP and Chief Administration OfficerDamon DelMonte - Managing DirectorBrendan Nosal - DirectorThomas Prame - CEO and PresidentConference Call ParticipantsNathan Race - Managing Director and Senior Research AnalystBrian Martin - AnalystOperatorGood morning, everyone, and welcome to ...

Financial Data and Key Metrics Changes - Horizon Bancorp reported an annualized return on average assets above 1.6% and a return on average equity approaching 16% for Q4 2025, with a net interest margin of 4.29% [4][15] - Total loans increased to $4.9 billion, up $60.7 million from Q3 2025, with commercial loans growing by $76 million, representing 9% annualized growth [6][10] - The net charge-offs for Q4 were $1 million, representing an annualized charge-off rate of 6 basis points, with full-year net charge-offs totaling approximately $2.9 million [10][19] Business Line Data and Key Metrics Changes - Commercial relationship lending remains the lead strategy, with modest declines in consumer loans and residential mortgage loans primarily sold into the secondary market [6][8] - The commercial loan portfolio is diversified, with 28% in commercial and industrial and 72% in commercial real estate [6][7] - Residential mortgage lending volumes were flat, aligning with the strategy to create capacity for commercial lending activities [8] Market Data and Key Metrics Changes - Loan growth was primarily driven by markets in Michigan and Indiana, particularly in Troy, Kalamazoo, Lake County, and Metro Indianapolis [7][8] - The deposit portfolio showed strength, with non-interest-bearing balances up year-over-year, reflecting improved cost structure within interest-bearing segments [12][13] Company Strategy and Development Direction - The company aims to create sustainable long-term value for shareholders through a disciplined operating model and consistent profitable growth [5][20] - Horizon plans to leverage its community banking model and expand its branch network in attractive markets, with a focus on organic growth [41][60] Management's Comments on Operating Environment and Future Outlook - Management views the outlook for 2026 as slightly more favorable, with expectations for net interest income growth in the low teens [27][40] - The company anticipates mid-single-digit growth in loans and deposits, with a focus on organic deposit funding to support loan growth [20][21] Other Important Information - The net interest margin increased by 77 basis points to 4.29%, marking the ninth consecutive quarter of expansion [15][16] - The allowance for credit losses increased from $50.2 million to $51.3 million, representing 1.05% of loans held for investment [10][11] Q&A Session Summary Question: Outlook for 2026 and potential risks - Management views the outlook as slightly more favorable, with net interest income growth expected to be higher than previously estimated [27] Question: Loan growth and consumer loan performance - The company maintains a commercial banking model and does not plan to push for accelerated growth in consumer loans [30] Question: Asset quality and substandard loans - Substandard loans increased modestly, but overall metrics remain strong, with a decrease in substandard loans over the past year [32] Question: Margin drivers and loan pricing - New origination yields are above 6.5%, with cash flows from the portfolio below 6%, indicating a favorable margin environment [38][39] Question: Capital deployment priorities - The company will focus on organic growth opportunities while remaining disciplined in capital deployment decisions [41][42] Question: Fee income drivers for 2026 - Fee income growth is expected to be balanced across various segments, with no single area driving significant changes [50]