MICHIGAN CITY, Ind., Oct. 01, 2025 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) -- Horizon Bancorp, Inc. (“Horizon” or the “Company”) will host a conference call at 7:30 a.m. CT on Thursday, October 23, 2025 to review its third quarter 2025 financial results. The Company’s third quarter 2025 news release will be published after markets close on Wednesday, October 22, 2025. It will be available at investor.horizonbank.com. Participants may access the live conference call on October 23, 2025 at 7:30 a.m. CT (8:30 a. ...

Core Viewpoint - Horizon Bancorp, Inc. has made significant progress in repositioning its balance sheet, aiming to enhance shareholder value and financial performance compared to its peers [1][2]. Financial Actions and Results - Horizon completed a public offering of 7,138,050 shares, raising net proceeds of $98.6 million [4]. - The company issued $100 million in subordinated notes with a fixed interest rate of 7.00% until 2030, which is better than the initially expected 7.50% [4]. - Horizon sold approximately $1.7 billion in securities, realizing a pre-tax loss of $299.1 million, which was less than the anticipated loss of $309.1 million [4]. - The company prepaid $700 million of FHLB puttable advances, incurring a pre-tax penalty of $12.7 million, also lower than the expected $15.6 million [4]. - Horizon redeployed around $600 million into investment securities yielding 5.27% on a tax-equivalent basis, aligning with prior model assumptions [4]. - The company plans to sell approximately $190 million of indirect auto loans, with minimal loss projections consistent with earlier estimates [4]. - Horizon anticipates reducing over $125 million of non-core, higher-cost transactional deposit balances in Q3 2025 [4]. Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with $7.7 billion in assets, serving customers in the Midwest through digital tools and physical branches [3]. - The bank offers a range of services including residential lending, personal banking, wealth management, business banking, and treasury management [3].

Core Insights - A secondary offering from a publicly traded regional bank may indicate financial distress, suggesting the need for additional cash to cover losses from its loan portfolio [1] Group 1 - Secondary offerings are often viewed as a negative signal in the financial markets, particularly for regional banks [1] - The financial world operates under the belief that markets are efficient, with stock prices reflecting their true value [1] - Profitable investment opportunities are typically found in stocks that are less followed by average investors or those that do not accurately represent current market opportunities [1]

Group 1 - A secondary offering from a publicly traded regional bank may indicate financial distress, suggesting the need for additional cash to cover losses from its loan portfolio [1] - The financial market is believed to be efficient, with most stocks reflecting their real current value, presenting opportunities for profit in less-followed stocks or those mispriced in their markets [1]

Core Viewpoint - Horizon Bancorp, Inc. has completed a private placement of $100 million in subordinated notes, which will be used for general corporate purposes and to redeem existing subordinated notes [1][2]. Group 1: Financial Details - The newly issued subordinated notes have a fixed interest rate of 7.00% until September 15, 2030, after which the rate will transition to a floating rate based on the three-month term Secured Overnight Financing Rate (SOFR) plus 360 basis points [2]. - The notes are redeemable in whole or in part starting from September 15, 2030, and are structured to qualify as Tier 2 capital for regulatory purposes [2]. Group 2: Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with assets totaling $7.7 billion as of June 30, 2025, serving customers in the Midwest through digital tools and physical branches [5]. - The bank offers a range of services including residential and secured consumer lending, personal banking, wealth management, business banking, and treasury management [5].

Core Viewpoint - Horizon Bancorp, Inc. has successfully closed a public offering of 7,138,050 shares of common stock, raising approximately $103.5 million in gross proceeds before expenses [1][2]. Group 1: Offering Details - The offering included 931,050 shares sold under the underwriters' option, which was fully exercised, at a public price of $14.50 per share [1]. - The net proceeds from the offering will be utilized for general corporate purposes, including potential repositioning of the company's balance sheet [2]. Group 2: Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with assets totaling $7.7 billion as of June 30, 2025 [5]. - The company operates Horizon Bank, serving customers in the Midwest through digital tools and physical branches in Indiana and Michigan [5]. - Horizon's offerings include residential and secured consumer lending, personal banking, wealth management, business banking, and treasury management services, with commercial lending making up over half of total loans [5].

Offering Details - Horizon Bancorp, Inc. announced the pricing of an underwritten public offering of 6,207,000 shares of common stock at a price of $14.50 per share, resulting in gross proceeds of approximately $90 million before deductions [1][2] - The underwriters have a 30-day option to purchase an additional 931,050 shares at the public offering price [2] - The offering is expected to close on or about August 22, 2025, subject to customary conditions [3] Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, including potential repositioning of the company's balance sheet [2] Company Overview - Horizon Bancorp, Inc. is a $7.7 billion-asset commercial bank holding company for Horizon Bank, serving customers in the Midwest through digital tools and physical branches [6] - The company offers a range of services including residential and secured consumer lending, personal banking, wealth management, business banking, and treasury management [6]

Core Viewpoint - Horizon Bancorp, Inc. has initiated an underwritten public offering of its common stock, with plans to grant underwriters a 30-day option to purchase an additional 15% of the shares sold in the offering [1][2]. Group 1: Offering Details - The net proceeds from the offering will be utilized for general corporate purposes, including potential repositioning of the company's balance sheet [2]. - The offering is conducted under a shelf registration statement on Form S-3, which has been filed and declared effective by the SEC [3]. Group 2: Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with assets totaling $7.7 billion, serving customers in the Midwest through digital tools and physical branches in Indiana and Michigan [5]. - The bank's offerings include residential and secured consumer lending, personal banking, wealth management, business banking, treasury management services, and equipment financing, with commercial lending making up over half of total loans [5].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%2E%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of Horizon Bancorp, Inc. and its subsidiaries [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Horizon Bancorp's unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and stockholders' equity at period-end Total Assets | Date | Amount (Thousands) | | :--- | :--- | | June 30, 2025 | $7,652,051 | | December 31, 2024 | $7,801,146 | Total Cash and Cash Equivalents | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $137,917 | -53.01% | | December 31, 2024 | $293,431 | | Loans, net | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $4,931,183 | +2.84% | | December 31, 2024 | $4,795,060 | | Total Deposits | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $5,699,757 | +1.77% | | December 31, 2024 | $5,600,652 | | Total Stockholders' Equity | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $790,852 | +3.57% | | December 31, 2024 | $763,582 | | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section details Horizon Bancorp's revenues, expenses, and net income over specific reporting periods Net Income Available to Common Shareholders | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months | $20,644 | $14,140 | +46.00% | | Six Months | $44,587 | $28,131 | +58.43% | Net Interest Income | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months | $55,355 | $45,279 | +22.26% | | Six Months | $107,622 | $88,567 | +21.51% | Total Non-interest Income | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months | $10,920 | $10,485 | +4.15% | | Six Months | $27,419 | $20,414 | +34.31% | Basic Earnings Per Share | Period | June 30, 2025 | June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months | $0.47 | $0.32 | +46.88% | | Six Months | $1.02 | $0.64 | +59.38% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents Horizon Bancorp's comprehensive income, including net income and other comprehensive income items Comprehensive Income | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months | $21,647 | $11,431 | +89.37% | | Six Months | $44,485 | $20,755 | +114.34% | Unrealized gains (losses) on securities (net of tax) | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months | $1,003 | $(2,709) | N/A (swing from loss to gain) | | Six Months | $(102) | $(7,376) | N/A (reduced loss) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in Horizon Bancorp's stockholders' equity, including retained earnings and dividends Total Stockholders' Equity | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $790,852 | +8.83% | | June 30, 2024 | $726,665 | | Retained Earnings | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $466,497 | +5.31% | | June 30, 2024 | $442,977 | | Cash dividends on common stock (Six Months Ended) | Period | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $(14,212) | +0.26% | | June 30, 2024 | $(14,175) | | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports Horizon Bancorp's cash inflows and outflows from operating, investing, and financing activities Net cash provided by operating activities (Six Months Ended) | Period | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $34,745 | +54.68% | | June 30, 2024 | $22,463 | | Net cash used in investing activities (Six Months Ended) | Period | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $(14,476) | -95.95% (less cash used) | | June 30, 2024 | $(357,479) | | Net cash used in financing activities (Six Months Ended) | Period | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $(175,783) | +287.26% (more cash used) | | June 30, 2024 | $(45,398) | | Net Change in Cash and Cash Equivalents (Six Months Ended) | Period | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $(155,514) | -59.12% (reduced outflow) | | June 30, 2024 | $(380,414) | | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1 - Accounting Policies](index=11&type=section&id=Note%201%20-%20Accounting%20Policies) This note outlines Horizon Bancorp's significant accounting policies and operational segment information - Horizon Bancorp operates as one reportable segment, primarily offering commercial banking, retail banking, and private wealth management services in North America[25](index=25&type=chunk) - As of June 30, 2025, Horizon had repurchased **803,349 shares** at an average price of **$16.89 per share**, under a program authorized for up to **2,250,000 shares**[26](index=26&type=chunk) Basic Earnings Per Share (Six Months Ended) | Period | EPS | Weighted Average Shares | | :--- | :--- | :--- | | June 30, 2025 | $1.02 | 43,785,847 | | June 30, 2024 | $0.64 | 43,686,576 | Diluted Earnings Per Share (Six Months Ended) | Period | EPS | Weighted Average Shares | | :--- | :--- | :--- | | June 30, 2025 | $1.01 | 43,994,461 | | June 30, 2024 | $0.64 | 43,918,290 | [Note 2 – Securities](index=12&type=section&id=Note%202%20%E2%80%93%20Securities) This note details Horizon Bancorp's investment securities, including available-for-sale and held-to-maturity portfolios Total Available for Sale Investment Securities | Date | Fair Value (Thousands) | Amortized Cost (Thousands) | Gross Unrealized Losses (Thousands) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $231,999 | $280,049 | $(47,900) | | December 31, 2024 | $233,677 | $282,022 | $(48,345) | Total Held to Maturity Investment Securities | Date | Fair Value (Thousands) | Amortized Cost (Thousands) | Gross Unrealized Losses (Thousands) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $1,536,980 | $1,819,229 | $(283,197) | | December 31, 2024 | $1,566,268 | $1,867,848 | $(302,538) | Allowance for Credit Losses on AFS Debt Securities | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :--- | :--- | :--- | | Three Months Ended | $150 | $0 | | Six Months Ended | $150 | $0 | Allowance for Credit Losses on HTM Securities | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :--- | :--- | :--- | | Three Months Ended | $142 | $158 | | Six Months Ended | $142 | $158 | Pledged Securities for Borrowing Availability (June 30, 2025) | Category | Fair Value (Thousands) | Amortized Cost (Thousands) | | :--- | :--- | :--- | | Federal Reserve | $849,709 | $1,042,168 | | FHLB borrowings | $297,446 | $345,111 | [Note 3 – Loans](index=18&type=section&id=Note%203%20%E2%80%93%20Loans) This note provides detailed information on Horizon Bancorp's loan portfolio, including classifications and credit quality Total Loans Held for Investment | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $4,985,582 | +2.85% | | December 31, 2024 | $4,847,040 | | Non-accrual Loans | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $24,294 | -5.81% | | December 31, 2024 | $25,792 | | Total Past Due Loans (June 30, 2025) | Category | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | | :--- | :--- | :--- | :--- | :--- | | Commercial | $8,257 | $6,319 | $4,340 | $18,916 | | Real estate | $0 | $4,702 | $4,419 | $9,121 | | Consumer | $11,976 | $2,652 | $4,738 | $19,366 | | **Total** | **$20,233** | **$13,673** | **$13,497** | **$47,403** | - Total modified loans for the six months ended June 30, 2025, were **$5,083 thousand**. Commercial and industrial loans had a weighted average term extension of **36 months** and a weighted average interest rate reduction of **1.73%**[62](index=62&type=chunk)[66](index=66&type=chunk) Collateral Dependent Loans (June 30, 2025) | Category | Total (Thousands) | ACL Allocation (Thousands) | Collateral Fair Value (Thousands) | | :--- | :--- | :--- | :--- | | Total commercial | $7,442 | $918 | $5,400 | [Note 4 – Allowance for Credit and Loan Losses](index=36&type=section&id=Note%204%20%E2%80%93%20Allowance%20for%20Credit%20and%20Loan%20Losses) This note details Horizon Bancorp's allowance for credit losses on loans and unfunded lending commitments Allowance for Credit Losses on Loans (Six Months Ended) | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :--- | :--- | :--- | | Beginning balance | $51,980 | $50,029 | | Provision for credit losses on loans | $3,542 | $3,084 | | Net loan (charge-offs) recoveries | $(1,123) | $(898) | | Ending balance | $54,399 | $52,215 | Liability for Unfunded Lending Commitments (Six Months Ended) | Period | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :--- | :--- | :--- | | Beginning balance | $2,149 | $615 | | Credit loss expense (reversal) | $162 | $90 | | Ending balance | $2,311 | $705 | - The Company utilizes the Cumulative Loss Rate method for CECL estimation, based on historical credit loss experience (January 2009 to current), adjusted for current conditions and macroeconomic forecasts (Moody's scenarios)[99](index=99&type=chunk)[101](index=101&type=chunk)[103](index=103&type=chunk) [Note 5 – Loan Servicing](index=38&type=section&id=Note%205%20%E2%80%93%20Loan%20Servicing) This note provides information on Horizon Bancorp's loan servicing activities and mortgage servicing rights Unpaid Principal Balance of Loans Serviced for Others | Date | Amount (Billions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $1.41 | -2.08% | | December 31, 2024 | $1.44 | | Mortgage Servicing Rights, net | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $17,752 | -3.69% | | June 30, 2024 | $18,432 | | - No impairment allowance was recorded for mortgage servicing rights as of June 30, 2025, or June 30, 2024[109](index=109&type=chunk) [Note 6 – Goodwill](index=38&type=section&id=Note%206%20%E2%80%93%20Goodwill) This note details the carrying amount of goodwill and any impairment assessments for Horizon Bancorp Carrying Amount of Goodwill | Date | Amount (Millions) | | :--- | :--- | | June 30, 2025 | $155.2 | | December 31, 2024 | $155.2 | - No goodwill impairment charges were recorded for the six months ended June 30, 2025, or 2024[112](index=112&type=chunk) [Note 7 – Repurchase Agreements](index=39&type=section&id=Note%207%20%E2%80%93%20Repurchase%20Agreements) This note outlines Horizon Bancorp's repurchase agreements and pledged securities Total Repurchase Agreements | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $95,089 | +5.76% | | December 31, 2024 | $89,912 | | Securities Pledged for Repurchase Agreements | Date | Carrying Amount (Thousands) | | :--- | :--- | | June 30, 2025 | $101,600 | | December 31, 2024 | $96,800 | [Note 8 – Subordinated Notes](index=40&type=section&id=Note%208%20%E2%80%93%20Subordinated%20Notes) This note describes Horizon Bancorp's subordinated notes, including interest rates and redemption terms Subordinated Notes Balance (net of unamortized issuance costs) | Date | Amount (Millions) | | :--- | :--- | | June 30, 2025 | $55.8 | | December 31, 2024 | $55.7 | - From July 1, 2025, the notes will bear interest at a floating rate equal to Three-Month Term SOFR plus **549 basis points**[115](index=115&type=chunk) - Horizon may redeem the notes, in whole or in part, starting July 1, 2025, on any interest payment date[116](index=116&type=chunk) [Note 9 – Derivative Financial Instruments](index=40&type=section&id=Note%209%20%E2%80%93%20Derivative%20Financial%20Instruments) This note details Horizon Bancorp's derivative instruments and their impact on financial performance - During 2024, the Company terminated fair value hedges on loans and securities, recording a deferred gain of **$2.3 million** on loan termination and a **$0.3 million** mark-to-market adjustment on securities[120](index=120&type=chunk) Derivatives Not Designated as Hedging Instruments (June 30, 2025) | Type | Notional Amount (Thousands) | Fair Value (Thousands) | | :--- | :--- | :--- | | Asset Derivatives | $531,551 | $17,282 | | Liability Derivatives | $531,629 | $16,756 | - For the six months ended June 30, 2025, mortgage loan contracts resulted in a gain of **$443 thousand**, while commitments to originate mortgage loans resulted in a loss of **$(146) thousand**[130](index=130&type=chunk) [Note 10 – Disclosures about Fair Value of Assets and Liabilities](index=44&type=section&id=Note%2010%20%E2%80%93%20Disclosures%20about%20Fair%20Value%20of%20Assets%20and%20Liabilities) This note provides fair value measurements for Horizon Bancorp's assets and liabilities, categorized by input levels - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1 prices), and Level 3 (unobservable inputs significant to fair value)[137](index=137&type=chunk) Available for Sale Securities (June 30, 2025) | Category | Fair Value (Thousands) | Level 2 (Thousands) | Level 3 (Thousands) | | :--- | :--- | :--- | :--- | | Total | $231,999 | $229,213 | $2,786 | Collateral Dependent Loans (June 30, 2025) | Category | Fair Value (Thousands) | Unobservable Input (Weighted Average) | | :--- | :--- | :--- | | Collateral dependent loans | $6,322 | Discount to reflect current market conditions and ultimate collectability (35.8%) | [Note 11 – Fair Value of Financial Instruments](index=46&type=section&id=Note%2011%20%E2%80%93%20Fair%20Value%20of%20Financial%20Instruments) This note presents the fair value of Horizon Bancorp's financial instruments, including loans, deposits, and borrowings Fair Value of Loans, net (June 30, 2025) | Category | Carrying Amount (Thousands) | Fair Value (Level 3, Thousands) | | :--- | :--- | :--- | | Loans, net | $4,931,183 | $4,776,148 | Fair Value of Total Deposits (June 30, 2025) | Category | Carrying Amount (Thousands) | Fair Value (Level 1 & 2, Thousands) | | :--- | :--- | :--- | | Non-interest bearing deposits | $1,121,163 | $1,121,163 | | Interest bearing deposits | $4,578,594 | $3,385,413 (Level 1) + $1,189,542 (Level 2) | Fair Value of Borrowings (June 30, 2025) | Category | Carrying Amount (Thousands) | Fair Value (Level 2, Thousands) | | :--- | :--- | :--- | | Borrowings | $975,425 | $992,232 | [Note 12 – Stockholders' Equity](index=50&type=section&id=Note%2012%20%E2%80%93%20Stockholders'%20Equity) This note details the components of Horizon Bancorp's stockholders' equity, including accumulated other comprehensive income Total Accumulated Other Comprehensive Income (Loss) | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $(36,403) | +0.28% (reduced loss) | | December 31, 2024 | $(36,301) | | Components of AOCL (June 30, 2025) | Component | Amount (Thousands) | | :--- | :--- | | Unrealized gain (loss) on securities available for sale | $(37,842) | | Unamortized gain (loss) on securities held to maturity, previously transferred from AFS | $1,439 | [Note 13 – Regulatory Capital](index=50&type=section&id=Note%2013%20%E2%80%93%20Regulatory%20Capital) This note provides Horizon Bancorp's regulatory capital ratios and compliance with capital adequacy requirements Capital Ratios (Consolidated, June 30, 2025) | Ratio | Actual | Required for Capital Adequacy | Well Capitalized | | :--- | :--- | :--- | :--- | | Total Capital | 14.44% | 8.00% | N/A | | Tier 1 Capital | 12.48% | 6.00% | N/A | | Common Equity Tier 1 Capital | 11.48% | 4.50% | N/A | | Tier 1 Capital (to average assets) | 9.59% | 4.00% | N/A | Capital Ratios (Bank, June 30, 2025) | Ratio | Actual | Required for Capital Adequacy | Well Capitalized | | :--- | :--- | :--- | :--- | | Total Capital | 13.21% | 8.00% | 10.00% | | Tier 1 Capital | 12.22% | 6.00% | 8.00% | | Common Equity Tier 1 Capital | 12.22% | 4.50% | 6.50% | | Tier 1 Capital (to average assets) | 9.36% | 4.00% | 5.00% | - Both Horizon and Horizon Bank met all capital adequacy requirements to be considered well capitalized as of June 30, 2025[160](index=160&type=chunk) [Note 14 – Off-Balance Sheet Arrangements, Commitments, and Contingencies](index=53&type=section&id=Note%2014%20%E2%80%93%20Off-Balance%20Sheet%20Arrangements,%20Commitments,%20and%20Contingencies) This note discloses Horizon Bancorp's off-balance sheet arrangements, commitments, and potential contingencies Total Off-Balance Sheet Commitments | Date | Amount (Thousands) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $1,096,015 | +5.21% | | December 31, 2024 | $1,041,759 | | Components (June 30, 2025) | Component | Amount (Thousands) | | :--- | :--- | | Commitments to extend credit | $1,069,729 | | Standby letters of credit | $26,286 | [Note 15 - Subsequent Events](index=53&type=section&id=Note%2015%20-%20Subsequent%20Events) This note reports any significant events occurring after the balance sheet date but before the financial statements were issued - No reportable subsequent events occurred between June 30, 2025, and the filing date[166](index=166&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Horizon's financial performance and condition, covering operations, financial health, and non-GAAP reconciliations [Forward–Looking Statements](index=54&type=section&id=Forward%E2%80%93Looking%20Statements) This section outlines factors that could cause actual results to differ materially from forward-looking statements - Actual results may vary due to factors such as new governmental trade measures, uncertain macroeconomic conditions, changes in interest rates and spreads, elevated inflation, loss of key personnel, increasing use of cryptocurrencies, risks related to AI, changes in prepayment speeds, liquidity sources, environmental liability, competitive environment, legislation/regulation, accounting policy changes, litigation, cyber terrorism, and M&A risks[169](index=169&type=chunk)[174](index=174&type=chunk) - The Company does not undertake to update any forward-looking statements[171](index=171&type=chunk) [Critical Accounting Estimates](index=55&type=section&id=Critical%20Accounting%20Estimates) This section identifies key accounting policies requiring significant management judgment and estimation - Management identifies critical accounting policies as the allowance for credit losses, goodwill and intangible assets, mortgage servicing rights, hedge accounting, and valuation measurements[172](index=172&type=chunk) - There have been no material changes in the Company's application of critical accounting estimates since December 31, 2024[173](index=173&type=chunk) [Results of Operations](index=57&type=section&id=Results%20of%20Operations) This section analyzes Horizon Bancorp's financial performance, including net income, interest income, and expenses [Net Income](index=57&type=section&id=Net%20Income) This section details Horizon Bancorp's net income and diluted earnings per share for the reporting periods Net Income (Three Months Ended) | Period | Amount (Millions) | Diluted EPS | Change (YoY) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $20.6 | $0.47 | +46.00% | | June 30, 2024 | $14.1 | $0.32 | | Net Income (Six Months Ended) | Period | Amount (Millions) | Diluted EPS | Change (YoY) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $44.6 | $1.01 | +58.43% | | June 30, 2024 | $28.1 | $0.64 | | [Net Interest Income](index=57&type=section&id=Net%20Interest%20Income) This section analyzes Horizon Bancorp's net interest income and net FTE interest margin, highlighting key drivers Net Interest Income (Three Months Ended) | Period | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $55.4 | +22.3% | | June 30, 2024 | $45.3 | | Net FTE Interest Margin (Three Months Ended) | Period | Margin | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | 3.23% | +59 bps | | June 30, 2024 | 2.64% | | - Net interest income increased by **$19.1 million** for the six months ended June 30, 2025, to **$107.6 million**, driven by a favorable mix shift towards higher-yielding loans and lower-cost deposit liabilities[179](index=179&type=chunk) Drivers of Change (Six Months Ended June 30, 2025 vs. 2024) | Item | Total Change (Thousands) | Due To Volume (Thousands) | Due To Rate (Thousands) | | :--- | :--- | :--- | :--- | | Total interest income | $8,345 | $5,944 | $2,401 | | Total interest expense | $(10,648) | $(3,769) | $(6,879) | [Non-Interest Income](index=60&type=section&id=Non-Interest%20Income) This section details Horizon Bancorp's non-interest income sources, including gains on loan sales and other fees Total Non-interest Income (Six Months Ended) | Period | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $27.4 | +34% | | June 30, 2024 | $20.4 | | Gain on Sale of Mortgage Loans (Six Months Ended) | Period | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $2.3 | +51% | | June 30, 2024 | $1.5 | | - Other income increased by **$7.1 million** during the six months ended June 30, 2025, primarily due to a **$7.0 million** pre-tax gain on the sale of the Company's mortgage warehouse business[193](index=193&type=chunk) - Interchange fees decreased by **$0.3 million** (**-4%**) for the six months ended June 30, 2025, primarily due to decreases in merchant and debit card fees[190](index=190&type=chunk) [Non-Interest Expense](index=61&type=section&id=Non-Interest%20Expense) This section analyzes Horizon Bancorp's non-interest expenses, including salaries, benefits, and other operating costs Total Non-interest Expense (Six Months Ended) | Period | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $78.7 | +6% | | June 30, 2024 | $74.6 | | Salaries and Employee Benefits (Six Months Ended) | Period | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $45.1 | +11% | | June 30, 2024 | $40.9 | | - Other expenses decreased by **$1.6 million** (**-21%**) for the six months ended June 30, 2025, primarily due to decreases in marketing and advertising expenses[198](index=198&type=chunk) [Provision and Allowance for Credit Losses](index=62&type=section&id=Provision%20and%20Allowance%20for%20Credit%20Losses) This section discusses Horizon Bancorp's provision for credit losses and the allowance for credit losses on loans Provision for Credit Losses on Loans (Three Months Ended) | Period | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $2.0 | -16.67% | | June 30, 2024 | $2.4 | | Net Loan Charge-offs (Three Months Ended) | Period | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $0.3 | -50.00% | | June 30, 2024 | $0.6 | | Allowance for Credit Losses to HFI Loans | Date | Ratio | | :--- | :--- | | June 30, 2025 | 1.09% | | June 30, 2024 | 1.08% | [Income Taxes](index=62&type=section&id=Income%20Taxes) This section details Horizon Bancorp's income tax expense and effective tax rates for the reporting periods Income Tax Expense (Three Months Ended) | Period | Amount (Millions) | Effective Tax Rate | | :--- | :--- | :--- | | June 30, 2025 | $3.8 | 15.4% | | June 30, 2024 | $1.7 | 10.9% | Income Tax Expense (Six Months Ended) | Period | Amount (Millions) | Effective Tax Rate | | :--- | :--- | :--- | | June 30, 2025 | $7.9 | 15.0% | | June 30, 2024 | $3.0 | 9.8% | - The increase in the effective tax rate for the comparative periods was primarily due to expectations of higher pre-tax income in 2025 and the Company's decision to discontinue further investment in certain tax credit structures[204](index=204&type=chunk) [Financial Condition](index=63&type=section&id=Financial%20Condition) This section assesses Horizon Bancorp's financial health, including investment securities, credit quality, liquidity, and capital [Investment securities](index=63&type=section&id=Investment%20securities) This section details Horizon Bancorp's investment securities portfolio, including changes due to maturities and amortization Total Investment Securities | Date | Amount (Billions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $2.1 | -2.4% | | December 31, 2024 | $2.15 | | - The decrease in total investments was primarily due to normal maturities and amortization of investment securities. There were no purchases of investment securities during the six months ended June 30, 2025[213](index=213&type=chunk) [Credit Quality](index=64&type=section&id=Credit%20Quality) This section evaluates Horizon Bancorp's credit quality, including allowance for credit losses and non-accrual loans ACL Balance | Date | Amount (Millions) | % of HFI Loans | | :--- | :--- | :--- | | June 30, 2025 | $54.4 | 1.09% | | December 31, 2024 | $52.0 | 1.07% | Non-accrual Loans | Date | Amount (Millions) | % of HFI Loans | Change (YoY) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $24.3 | 0.49% | -5.8% | | December 31, 2024 | $25.8 | 0.53% | | Total Non-performing Assets | Date | Amount (Millions) | % of Total Assets | Change (YoY) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $30.5 | 0.40% | +11% | | December 31, 2024 | $27.4 | 0.35% | | - During the six months ended June 30, 2025, net charge-offs were **$1.1 million**, or **5 basis points** annualized of average loans in the period[215](index=215&type=chunk) [Liquidity](index=65&type=section&id=Liquidity) This section discusses Horizon Bancorp's liquidity position, including available credit lines and cash flow activities - The Bank had approximately **$1.75 billion** in unused credit lines with various money center banks, including the FHLB and the FRB Discount Window, at June 30, 2025, up from **$1.70 billion** at December 31, 2024[222](index=222&type=chunk) - For the six months ended June 30, 2025, operating activities provided **$34.7 million** in cash, investing activities used **$14.5 million** (mainly due to loan portfolio growth), and financing activities used **$175.8 million** (largely for repayment of **$632.0 million** in long-term borrowings and **$14.2 million** in dividends)[223](index=223&type=chunk) [Capital Resources](index=66&type=section&id=Capital%20Resources) This section details Horizon Bancorp's capital resources, including stockholders' equity and key capital ratios Total Stockholders' Equity | Date | Amount (Millions) | Change (YoY) | | :--- | :--- | :--- | | June 30, 2025 | $790.9 | +3.57% | | December 31, 2024 | $763.6 | | Key Capital Ratios (June 30, 2025) | Metric | Value | | :--- | :--- | | Ratio of total stockholders' equity to total assets | 10.34% | | Book value per common share | $18.06 | | Tangible common equity (Non-GAAP) | $627.0 million | | Ratio of tangible common equity to tangible assets (Non-GAAP) | 8.37% | | Tangible book value per common share (Non-GAAP) | $14.32 | | Dividend payout ratio (Six Months Ended) | 31.37% | [Use of Non-GAAP Financial Measures](index=67&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures and provides reconciliations to GAAP equivalents [Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin](index=67&type=section&id=Non%E2%80%93GAAP%20Reconciliation%20of%20Net%20Fully-Taxable%20Equivalent%20(%22FTE%22)%20Interest%20Margin) This section reconciles Horizon Bancorp's net fully-taxable equivalent interest margin, a non-GAAP measure Net FTE Interest Margin (Non-GAAP, Six Months Ended) | Period | Margin | | :--- | :--- | | June 30, 2025 | 3.14% | | June 30, 2024 | 2.57% | [Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets](index=68&type=section&id=Non%E2%80%93GAAP%20Reconciliation%20of%20Tangible%20Common%20Equity%20to%20Tangible%20Assets) This section reconciles Horizon Bancorp's tangible common equity to tangible assets, a non-GAAP measure Tangible Common Equity to Tangible Assets (Non-GAAP) | Date | Ratio | | :--- | :--- | | June 30, 2025 | 8.37% | | June 30, 2024 | 7.22% | [Non–GAAP Reconciliation of Tangible Book Value Per Share](index=68&type=section&id=Non%E2%80%93GAAP%20Reconciliation%20of%20Tangible%20Book%20Value%20Per%20Share) This section reconciles Horizon Bancorp's tangible book value per share, a non-GAAP measure Tangible Book Value Per Common Share (Non-GAAP) | Date | Value | | :--- | :--- | | June 30, 2025 | $14.32 | | June 30, 2024 | $12.80 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Horizon manages interest rate risk using earnings simulation models, projecting faster repricing of interest-bearing liabilities in declining rate environments - Interest rate risk management focuses on monitoring and maintaining variances in net interest income due to interest rate changes within Board-approved policy limits, using earnings simulation models[235](index=235&type=chunk) Modelled Effects on Net Interest Income (June 30, 2025, 1-year horizon) | Rate Shift | $ Change in Net Interest Income (Thousands) | % Change in Net Interest Income | | :--- | :--- | :--- | | 200 basis points rising | $(18,412.0) | (7.7)% | | 100 basis points rising | $(7,922.0) | (3.3)% | | 100 basis points falling | $2,199.0 | 0.9% | | 200 basis points falling | $(3,610.0) | (1.5)% | - The simulation model indicates that as of June 30, 2025, the Company's interest-bearing liabilities are projected to reprice at a faster pace than interest-earning assets for the next **100 basis points** of declining interest rates[236](index=236&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Horizon's disclosure controls and procedures are effective, with no material changes to internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=70&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of Horizon's disclosure controls and procedures as of June 30, 2025 - Horizon's CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[239](index=239&type=chunk) - The controls are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized, and reported within specified timeframes and communicated to management for timely disclosure decisions[239](index=239&type=chunk) [Changes in Internal Control Over Financial Reporting](index=70&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports no material changes in Horizon's internal control over financial reporting during the fiscal quarter - Management concluded that there were no changes in Horizon's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the fiscal quarter ended June 30, 2025[240](index=240&type=chunk) [PART II. OTHER INFORMATION](index=71&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information not covered in Part I, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in ordinary course legal claims, which management believes are adequately covered or immaterial - The Company is involved in various claims, legal actions, and complaints arising in the ordinary course of business[243](index=243&type=chunk) - Management believes that all such matters are adequately covered by insurance, are without merit, or involve amounts that would not have a material adverse effect on the financial condition or results of operations[243](index=243&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in Horizon's Annual Report on Form 10-K for FY2024 - There have been no material changes from the factors previously disclosed under Item 1A of Horizon's Annual Report on Form 10–K for the fiscal year ended December 31, 2024[244](index=244&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period, with no unregistered equity sales or proceeds to report - This item is not applicable for the reporting period[246](index=246&type=chunk) [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the reporting period, with no defaults on senior securities to report - This item is not applicable for the reporting period[245](index=245&type=chunk) [Item 4. Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the reporting period, requiring no mine safety disclosures - This item is not applicable for the reporting period[245](index=245&type=chunk) [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No directors or officers reported adopting or terminating Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or officers reported adoption or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025[245](index=245&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including stock agreements, CEO/CFO certifications, and data files [Index to Exhibits](index=72&type=section&id=Index%20to%20Exhibits) This section provides an index to the exhibits filed with the report, detailing key documents - Key exhibits include Amended Form of Restricted Stock Award Agreement (performance-based and time-based), Certifications of Thomas M. Prame (CEO) and John R. Stewart (CFO), and Inline Interactive Data Files[248](index=248&type=chunk) [Signatures](index=73&type=section&id=Signatures) The report is signed by Thomas M. Prame (CEO) and John R. Stewart (CFO) on August 11, 2025 - The report is signed by Thomas M. Prame, Chief Executive Officer, and John R. Stewart, Chief Financial Officer[251](index=251&type=chunk) - The signing date for the report is August 11, 2025[251](index=251&type=chunk)

Core Insights - Horizon Bank has appointed John Hatfield as the Senior Vice President, Director of Marketing, aiming to enhance brand awareness and sales effectiveness [1][2][3] Company Overview - Horizon Bancorp, Inc. has over 150 years of experience as an independent commercial bank holding company, serving Indiana and Michigan through its subsidiary, Horizon Bank [4] Leadership and Strategy - John Hatfield brings over 20 years of experience in strategic marketing, business development, and branding, with a focus on building cohesive teams for organizational success [2] - The company believes that enhanced brand awareness will align with its core business model and position it for future growth [2][3] Marketing Initiatives - In his new role, Hatfield will oversee the strategic direction of Horizon's marketing, focusing on multi-channel marketing campaigns for customer acquisition across all business lines [3] - There will be an emphasis on expanding local outreach efforts to support community growth [3]