分组1 - Horizon Bancorp reported quarterly earnings of $0.3 per share, missing the Zacks Consensus Estimate of $0.46 per share, and down from $0.41 per share a year ago, representing an earnings surprise of -34.78% [1] - The company posted revenues of $62.18 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 7.19%, compared to year-ago revenues of $58.42 million [2] - Horizon Bancorp shares have lost about 2.4% since the beginning of the year, while the S&P 500 has gained 14.5% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.46 on revenues of $69.95 million, and for the current fiscal year, it is $1.82 on revenues of $268.55 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Horizon Bancorp reported a net loss of $222.0 million, or $(4.69) per diluted share, for Q3 2025, compared to a net income of $20.6 million, or $0.47 per diluted share, in Q2 2025[3]. - The company reported a net loss of $221,990,000 for Q3 2025, a significant decline from a net income of $20,644,000 in Q2 2025[42]. - Basic earnings per share for Q3 2025 were $(4.69), compared to $0.42 in Q3 2024, marking a significant drop in earnings per share[31]. - The return on average tangible common equity (ROACE) was reported at (155.03)% for Q3 2025, compared to 13.24% in Q2 2025[42]. Income and Revenue - Net interest income increased by 5.5% to $58.4 million in Q3 2025 from $55.4 million in Q2 2025, and rose 24.5% compared to $46.9 million in Q3 2024[7]. - Total interest income for Q3 2025 was $92,836,000, an increase from $90,888,000 in Q3 2024, representing a year-over-year growth of 2.1%[31]. - Non-interest income for Q3 2025 was a loss of $295.3 million, significantly down from a gain of $10.9 million in Q2 2025, primarily due to losses on the sale of investment securities[14]. - Non-interest income for Q3 2025 showed a loss of $295,334,000, compared to a gain of $11,511,000 in Q3 2024, indicating a significant decline in non-interest revenue[31]. Credit Quality and Losses - The provision for credit losses recorded a benefit of $(3.6) million in Q3 2025, compared to a provision expense of $2.5 million in Q2 2025[11]. - Credit quality remained strong with annualized net charge-offs of 0.07% of average loans in Q3 2025, compared to 0.02% in Q2 2025[12]. - Net charge-offs increased to $0.8 million in Q3 2025, compared to $0.3 million in Q2 2025, remaining at just 0.07% annualized of average loans[22]. - The allowance for credit losses as a percentage of loans held for investment was 1.04% at September 30, 2025, down from 1.09% at June 30, 2025[13]. Assets and Liabilities - Total assets decreased by $939.6 million, or 12.3%, to $6.7 billion as of September 30, 2025, primarily due to a $1.2 billion decrease in total investment securities[18]. - Total liabilities were reported at $6,051,726,000 in Q3 2025, down from $7,172,635,000 in Q3 2024, representing a decrease of 15.6%[34]. - The total stockholders' equity (GAAP) decreased to $660,771,000 in Q3 2025 from $790,852,000 in Q2 2025[44]. - Total stockholders' equity decreased to $660,771,000 from $790,852,000 in the previous quarter, representing a decline of 16.4%[46]. Loans and Deposits - Total loans held for investment decreased by 13.0% annualized compared to the previous quarter, despite strong organic commercial loan growth of $57.9 million, or 7.0% annualized[7]. - Total loans were $4.8 billion at September 30, 2025, a decrease of $163.0 million from Q2 2025, impacted by the sale of approximately $176 million of the indirect auto portfolio[18]. - Total deposits decreased by $178.9 million, or 3.1%, to $5.5 billion as of September 30, 2025, driven by a decline in high-cost transactional deposit balances[19]. - Total deposits decreased by 3% from Q2 2025 to $5,520,901,000, and decreased by 4% compared to Q3 2024[35]. Expenses - Total Non-Interest Expense was $53.0 million in Q3 2025, up from $39.4 million in Q2 2025, primarily due to a $12.7 million prepayment penalty related to $700 million in FHLB advances[16]. - Total non-interest expense increased to $52,952,000 in Q3 2025 from $39,272,000 in Q3 2024, an increase of 34.9%[31]. Strategic Focus - Horizon Bancorp aims to focus on profitable growth and smart redeployment of capital to create sustainable long-term value for shareholders[3]. - The company plans to continue its strategic balance sheet repositioning to achieve top-tier financial outcomes[3]. - The company plans to host a conference call on October 23, 2025, to review its third quarter financial results and operating performance[23].

Core Insights - Horizon Bancorp reported a net loss of $222.0 million, or $(4.69) per diluted share, for Q3 2025, a significant decline compared to net income of $20.6 million, or $0.47 per diluted share, in Q2 2025 and $18.2 million, or $0.41 per diluted share, in Q3 2024 [2][3][10] - The company successfully executed a strategic balance sheet repositioning, which is expected to yield top-tier financial outcomes and enhance shareholder value [2][20] - Despite the net loss, the core community banking franchise remains strong, with expanding net interest margins and solid commercial loan growth [2][7] Financial Highlights - Net interest income for Q3 2025 was $58.4 million, up 5.5% from $55.4 million in Q2 2025 and 24.5% from $46.9 million in Q3 2024 [7][10] - The net interest margin expanded to 3.52%, compared to 3.23% in Q2 2025 and 2.66% in Q3 2024, marking the eighth consecutive quarter of growth [7][10] - Total loans held for investment decreased by 13.0% annualized, with organic commercial loan growth of $57.9 million, or 7.0% annualized [7][20] Non-Interest Income and Expenses - Total non-interest loss was $295.3 million in Q3 2025, a decrease from non-interest income of $10.9 million in Q2 2025, primarily due to losses on the sale of investment securities and the indirect auto portfolio [16][21] - Non-interest expenses increased to $53.0 million in Q3 2025 from $39.4 million in Q2 2025, driven by a $12.7 million prepayment penalty related to the payoff of FHLB advances [18][21] Credit Quality - Credit quality remained strong, with annualized net charge-offs of 0.07% of average loans during Q3 2025, compared to 0.02% in Q2 2025 [12][26] - The allowance for credit losses as a percentage of loans held for investment was 1.04% as of September 30, 2025, down from 1.09% at June 30, 2025 [13][25] Balance Sheet Highlights - Total assets decreased by $939.6 million, or 12.3%, to $6.7 billion as of September 30, 2025, primarily due to balance sheet repositioning efforts [20][21] - Total deposits decreased by $178.9 million, or 3.1%, to $5.5 billion, driven by a decline in high-cost transactional deposit balances [21][22] - The ratio of total stockholders' equity to total assets was 9.84% as of September 30, 2025, with a book value per common share of $12.96 [23][24]

Core Viewpoint - Horizon Bancorp (HBNC) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with earnings per share (EPS) estimated at $0.46, reflecting a 12.2% increase, and revenues projected at $67 million, up 14.7% from the previous year [1][3]. Earnings Expectations - The stock price may rise if the actual earnings exceed expectations in the upcoming earnings report scheduled for October 22, while a miss could lead to a decline in stock price [2]. - The consensus EPS estimate has been revised down by 2.14% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates that Horizon Bancorp has an Earnings ESP of -2.17%, suggesting a lower Most Accurate Estimate compared to the Zacks Consensus Estimate [8][12]. - The company currently holds a Zacks Rank of 3, making it challenging to predict a positive earnings surprise [12]. Historical Performance - In the last reported quarter, Horizon Bancorp exceeded the consensus EPS estimate of $0.44 by delivering earnings of $0.47, resulting in a surprise of +6.82% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Comparative Industry Analysis - Bridgewater (BWB), another player in the Zacks Banks - Northeast industry, is expected to report earnings of $0.41 per share, reflecting a significant year-over-year increase of 51.9%, with revenues projected at $37.1 million, up 36.8% [18][19]. - Bridgewater has an Earnings ESP of +4.88% and a Zacks Rank of 1 (Strong Buy), indicating a high likelihood of beating the consensus EPS estimate [20].

Core Insights - Horizon Bancorp has appointed Larry S. Magnesen as an independent director on its Board of Directors, effective October 10, 2025 [1] - Magnesen brings over 40 years of banking experience, having held senior roles at Fifth Third Bank and other financial institutions [2] - His expertise is expected to enhance Horizon's strategic growth and community support initiatives [3] Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with assets totaling $7.7 billion as of June 30, 2025 [4] - The company operates in economically attractive Midwestern markets, offering a range of banking services including residential lending, personal banking, wealth management, and business banking [4] - Horizon Bank utilizes digital tools alongside its physical branches in Indiana and Michigan to serve its customers [4]

Core Viewpoint - Horizon Bancorp, Inc. will host a conference call on October 23, 2025, to discuss its third quarter 2025 financial results, with the news release available after market close on October 22, 2025 [1]. Group 1: Conference Call Details - The live conference call will take place at 7:30 a.m. CT (8:30 a.m. ET) on October 23, 2025, with participants able to join by dialing specific numbers based on their location [2]. - A telephone replay of the call will be available approximately one hour after the call ends, accessible until October 31, 2025, using designated numbers and an access code [3]. 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 in Indiana and Michigan [4]. - The company offers a variety of retail banking services, including residential and secured consumer lending, personal banking, and wealth management solutions, with commercial lending making up over half of its total loans [4].

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].