Core Viewpoint - Horizon Bancorp (HBNC) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are crucial for predicting near-term stock price movements [2][4]. - The recent upgrade for Horizon Bancorp reflects an improvement in its earnings outlook, likely leading to a favorable impact on its stock price [3][5]. Earnings Estimate Revisions - Horizon Bancorp is projected to earn $1.78 per share for the fiscal year ending December 2025, representing a year-over-year increase of 26.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Horizon Bancorp has risen by 6.8%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Horizon Bancorp to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Performance - As of December 31, 2024, Horizon Bank had total assets of $7.8 billion and total deposits of $5.6 billion[21]. - In 2024, revenues from loans accounted for 81.0% of total consolidated revenue, while revenues from investment securities accounted for 15.5%[23]. - Horizon has experienced financial growth through strategic mergers and acquisitions, enhancing its market presence[20]. - The company has experienced financial growth through a combination of organic expansion and strategic acquisitions[20]. Market Position - Horizon holds a market share of 58.25% in LaPorte County, making it the largest of 8 institutions in that area[32]. - In Carroll County, Horizon is the largest institution with a market share of 29.52% among 6 institutions[32]. - Horizon ranks 4th in Johnson County with a market share of 9.80% among 22 institutions[32]. - In Michigan, Horizon is the 2nd largest in Midland County and the 4th largest in Berrien County[33]. Employee and Operational Structure - Horizon employs 841 full-time and 21 part-time employees across all locations as of December 31, 2024[28]. - The company has a focus on developing employee skills and career goals, emphasizing internal promotions[27]. - Horizon operates 71 full-service offices in northern and central Indiana and southern and central Michigan[21]. Regulatory Environment - The company is subject to extensive regulation by the Federal Reserve and the Indiana Department of Financial Institutions[34][36]. - Horizon has qualified as a financial holding company, allowing it to engage in a broader range of financial activities[40]. - The company must maintain a common equity Tier 1 capital to risk-based assets ratio of 4.5% to meet federal capital standards[57]. - Horizon is required to act as a source of financial strength for its subsidiary bank in times of financial distress[42]. - Horizon is subject to the Sarbanes–Oxley Act, which imposes new requirements for audit committees and increased disclosure obligations[91]. - Horizon has incurred higher operating costs due to compliance with the Dodd–Frank Act, which are expected to continue in the foreseeable future[99]. Capital Adequacy - As of December 31, 2024, Horizon Bank's total capital ratio was 13.91%, exceeding the required 8.00% for capital adequacy purposes[72]. - Horizon Bank's Tier 1 capital ratio was 12.00%, above the minimum requirement of 6.00%[72]. - The common equity Tier 1 capital ratio for Horizon Bank was 11.00%, surpassing the required 4.50%[72]. - The leverage ratio for Horizon Bank was 8.88%, exceeding the minimum requirement of 4.00%[72]. - The total risk-based capital ratio for Horizon Bank was 12.64%, well above the 8.00% minimum[72]. - The Bank could declare dividends of approximately $54.5 million to Horizon without prior approval as of December 31, 2024[77]. - Horizon Bank was categorized as "well capitalized," meeting all regulatory capital requirements[81]. Competition - The company faces high competition from various financial institutions, including commercial banks, credit unions, and emerging FinTech start-ups[29]. - Horizon's business is not materially seasonal and does not rely on a small group of customers[23]. Stock Information - Horizon's common stock is traded on the NASDAQ Global Select Market under the symbol HBNC[19]. - Horizon's common stock is listed on NASDAQ under the symbol "HBNC" and is subject to NASDAQ rules for listed companies[90]. Deposit Insurance - The FDIC insures deposits up to $250,000 per depositor, with a long-term goal for the designated reserve ratio of 2% of estimated insured deposits[49][50]. - Assessment rates for deposit insurance premiums for small banks like Horizon range from 5 to 9 basis points[51].

Core Points - Horizon Bancorp, Inc. announced the retirement of Craig Dwight as Chairman of the Board effective May 1, 2025, after providing written notice on February 24, 2025, which was accepted by the Board on February 25, 2025 [1] - Eric Blackhurst has been elected as the new Independent Chairperson, effective upon Mr. Dwight's retirement, bringing over seven years of experience as a Company Director and a notable background in corporate governance [1][2] - The role of Independent Lead Director, currently held by Michele Magnuson, will be retired, although she will remain on the Board and continue serving on the Compensation and Governance Committees [1][2] - Larry Magnesen has joined the Horizon Bank's Board of Directors effective February 25, 2025, bringing over 20 years of experience in marketing and corporate communications from his previous roles at Fifth Third Bank [2] Company Overview - Horizon Bancorp, Inc. is a nearly $8 billion asset bank holding company for Horizon Bank, serving customers across Midwestern markets with a range of digital tools and physical branches in Indiana and Michigan [3] - The bank's retail offerings include residential, indirect auto, and secured consumer lending, along with personal banking and wealth management solutions [3] - Horizon also provides business banking and treasury management services, with commercial lending representing over half of total loans [3]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3][4] Management Commentary on Operating Environment and Future Outlook - No specific management commentary on the operating environment or future outlook mentioned in the provided content [1][2][3][4] Other Important Information - The conference call may contain forward-looking statements subject to risks and uncertainties, with additional information available in Horizon's SEC filings [2][3] - Management may refer to non-GAAP financial measures, with reconciliations provided in the presentation [3] - The press release and supplemental presentation are available on the company's website [3] Q&A Session Summary - No Q&A session details provided in the content [1][2][3][4]

Core Insights - Horizon Bancorp reported revenue of $24.17 million for Q4 2024, a year-over-year increase of 10.8%, but fell short of the Zacks Consensus Estimate of $61.53 million, resulting in a surprise of -60.72% [1] - The company's EPS for the quarter was $0.36, compared to $0.33 a year ago, but also missed the consensus estimate of $0.39, leading to an EPS surprise of -7.69% [1] Financial Performance Metrics - Efficiency Ratio was reported at 185.9%, significantly higher than the average estimate of 67.7% from three analysts [4] - Net Interest Margin stood at 3%, exceeding the average estimate of 2.8% from three analysts [4] - Annualized net charge-offs of average total loans were 0.1%, matching the average estimate from two analysts [4] - Average Balance of Total Interest Earning Assets was $7.40 billion, slightly below the average estimate of $7.42 billion from two analysts [4] - Gain on sale of mortgage loans was $1.07 million, lower than the estimated $1.16 million from three analysts [4] - Total non-interest income was reported at -$28.95 million, significantly below the average estimate of $11.02 million from three analysts [4] - Net Interest Income was $53.13 million, surpassing the average estimate of $50.48 million from three analysts [4] - Wire transfer fees were $0.12 million, slightly above the average estimate of $0.11 million from two analysts [4] - Mortgage servicing income net of impairment was $0.38 million, compared to the average estimate of $0.42 million from two analysts [4] - Service charges on deposit accounts were $3.28 million, slightly below the average estimate of $3.37 million from two analysts [4] - Other income was reported at $0.34 million, lower than the average estimate of $0.54 million from two analysts [4] - Fiduciary activities generated $1.31 million, compared to the average estimate of $1.50 million from two analysts [4] Stock Performance - Horizon Bancorp shares returned -2.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Horizon Bancorp reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.39 per share, but showing an increase from $0.33 per share a year ago, indicating a -7.69% earnings surprise [1][2] Financial Performance - The company posted revenues of $24.17 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 60.72%, compared to $21.81 million in the same quarter last year [2] - Over the last four quarters, Horizon Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Horizon Bancorp shares have lost about 1% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The stock is currently rated Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.38 on revenues of $60.57 million, and for the current fiscal year, it is $1.67 on revenues of $251.97 million [7] - The outlook for the industry, particularly the Banks - Northeast sector, is favorable, ranking in the top 24% of over 250 Zacks industries [8]

Core Insights - Horizon Bancorp reported a net loss of $10.9 million for Q4 2024, compared to a net income of $18.2 million in Q3 2024 and a net loss of $25.2 million in Q4 2023, primarily due to a $39.1 million pre-tax loss on the sale of investment securities [2][3][4] - The company achieved a net interest income of $53.1 million in Q4 2024, marking an increase from $46.9 million in Q3 2024, driven by a 31 basis point increase in net interest margin to 2.97% [4][9] - Total loans increased to $4.91 billion as of December 31, 2024, reflecting a growth of $108.6 million from the previous quarter, with a notable 22.4% annualized growth rate in commercial loans [4][20] - Total deposits decreased by $126.4 million to $5.60 billion, primarily due to a decline in time deposits [4][21] - The company completed the repositioning of $332.2 million of available-for-sale securities during Q4 2024, resulting in a pre-tax loss but allowing for reinvestment into higher-yielding loans [4][19] Financial Performance - For the twelve months ended December 31, 2024, net income was $35.4 million, or $0.80 per diluted share, compared to $28.0 million, or $0.64 per diluted share for the same period in 2023 [3] - Non-interest loss for Q4 2024 was $29.0 million, significantly down from a non-interest income of $11.5 million in Q3 2024, largely due to the loss on the sale of investment securities [15] - Non-interest expenses rose to $44.9 million in Q4 2024, up from $39.3 million in Q3 2024, driven by increased salaries and employee benefits [16] Balance Sheet Highlights - Total assets decreased by $126.3 million to $7.80 billion as of December 31, 2024, primarily due to the use of proceeds from the sale of investment securities to pay down higher-cost time deposits [18] - The allowance for credit losses as a percentage of loans held for investment was 1.07% at December 31, 2024, down from 1.10% at September 30, 2024 [12][26] - Tangible common equity totaled $598.1 million at December 31, 2024, with a tangible common equity to tangible assets ratio of 7.83% [24] Credit Quality - Credit quality remained strong, with annualized net charge-offs of 0.05% of average loans during Q4 2024, compared to 0.03% in Q3 2024 [11][26] - Total non-performing assets increased to $27.4 million, or 0.35% of total assets, reflecting a slight increase from 0.32% in the previous quarter [25][26] Strategic Initiatives - The company is focused on restructuring its expense base to enhance efficiency in 2025, having completed several major initiatives in Q4 2024 [2][4] - Horizon is in the process of selling its mortgage warehouse division, which was completed on January 17, 2025, with gains expected to be recognized in Q1 2025 [5]

Core Insights - Horizon Bancorp (HBNC) is expected to report quarterly earnings of $0.39 per share, reflecting an 18.2% increase year-over-year [1] - Analysts forecast revenues of $61.53 million, indicating a significant increase of 182.1% compared to the previous year [1] - There has been no revision in the consensus EPS estimate over the past 30 days, suggesting stability in analyst projections [1] Earnings Estimates and Metrics - The 'Efficiency Ratio' is projected to be 67.7%, a significant improvement from 180.4% reported in the same quarter last year [4] - 'Average Balance - Total interest earning assets' is expected to reach $7.42 billion, up from $7.24 billion a year ago [4] - 'Net Interest Income' is forecasted at $50.48 million, compared to $42.26 million in the same quarter last year [5] - 'Service charges on deposit accounts' are estimated to be $3.37 million, an increase from $3.09 million year-over-year [5] - 'Interchange fees' are expected to reach $3.53 million, up from $3.22 million in the same quarter last year [6] Market Performance - Shares of Horizon Bancorp have decreased by 3.9% over the past month, contrasting with a 0.4% decline in the Zacks S&P 500 composite [7] - With a Zacks Rank 2 (Buy), HBNC is anticipated to outperform the overall market in the near future [7]

Company Overview - Horizon Bancorp (HBNC) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.39, reflecting an 18.2% increase [3] - Revenues are anticipated to reach $61.53 million, marking a significant increase of 182.1% from the previous year [3] Earnings Expectations - The earnings report is scheduled for January 22, 2025, and the actual results will be crucial in determining the stock's near-term price movement [2] - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for Horizon Bancorp is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +4.24% [10] Historical Performance - Horizon Bancorp has a strong track record, having beaten consensus EPS estimates in the last four quarters, including a +10.81% surprise in the most recent quarter [12][13] Industry Context - In the broader Zacks Banks - Northeast industry, Pathward Financial (CASH) is also expected to report earnings, with an EPS estimate of $1.14, reflecting a year-over-year increase of 7.6% [17] - Pathward's revenue is projected to be $172.98 million, up 6.3% from the previous year, but it currently has a negative Earnings ESP of -0.88% [18]

Horizon Bancorp (HBNC) has been beaten down lately with too much selling pressure. While the stock has lost 11.5% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillato ...