Company Performance - Horizon Bancorp reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, and up from $0.32 per share a year ago, representing an earnings surprise of +6.82% [1] - The company posted revenues of $66.27 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.20%, compared to year-ago revenues of $55.76 million [2] - Over the last four quarters, Horizon Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Market Performance - Horizon Bancorp shares have declined approximately 1.2% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $66.15 million, and for the current fiscal year, it is $1.85 on revenues of $259.35 million [7] Industry Outlook - The Zacks Industry Rank for Banks - Northeast is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Horizon Bancorp, Inc. Reports Second Quarter 2025 Results | Contact: | John R. Stewart, CFA | | --- | --- | | | EVP, Chief Financial Officer | | Phone: | (219) 814–5833 | | Fax: | (219) 874–9280 | | Date: | July 23, 2025 | FOR IMMEDIATE RELEASE Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion Michigan City, Indiana, July 23, 2025 (GLOBE NEWSWIRE) – (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. ("Horizon" or the "Company"), the parent company of Hori ...

Core Insights - Horizon Bancorp reported strong second quarter earnings driven by robust loan growth, stable funding, excellent credit quality, and effective expense management, with a 58% increase in earnings per share compared to the same period last year [2][3][29] Financial Performance - Net income for Q2 2025 was $20.6 million, or $0.47 per diluted share, down from $23.9 million, or $0.54 in Q1 2025, but up from $14.1 million, or $0.32 in Q2 2024 [2][3][10] - For the first half of 2025, net income totaled $44.6 million, or $1.01 per diluted share, compared to $28.1 million, or $0.64 in the same period of 2024 [3] Key Financial Metrics - Net interest income increased to $55.4 million in Q2 2025, a 5.9% rise from Q1 2025 and a 22.3% increase from Q2 2024, with a net interest margin of 3.23% [7][10] - Total loans held for investment rose by 6.2% annualized, with organic commercial loan growth of $117.2 million, or 14.8% [7][20] - Non-interest income for Q2 2025 was $10.9 million, down from $16.5 million in Q1 2025, primarily due to the absence of a one-time gain from the sale of the mortgage warehouse business [16][21] Expense Management - Total non-interest expense was $39.4 million in Q2 2025, slightly up from $39.3 million in Q1 2025, reflecting effective cost control measures [18][19] - The provision for credit losses was $2.5 million in Q2 2025, compared to $1.4 million in Q1 2025, attributed to growth in commercial loans and economic factors [11][12] Balance Sheet Highlights - Total assets increased by $23.4 million to $7.7 billion as of June 30, 2025, driven by loan growth and cash increases [20] - Total deposits decreased by $66.0 million to $5.7 billion, influenced by a decline in time deposits [21] - The allowance for credit losses as a percentage of loans held for investment was 1.09% as of June 30, 2025 [13][25] Capital Ratios - As of June 30, 2025, the total capital ratio was 14.48%, with Tier 1 capital at 12.52% [22][23] - Book value per common share increased to $18.06, reflecting growth in retained earnings [24]

Core Viewpoint - Horizon Bancorp, Inc. will host a conference call on July 24, 2025, to discuss its second quarter 2025 financial results, with the news release published on July 23, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for 7:30 a.m. CT (8:30 a.m. ET) on July 24, 2025, and participants can join by dialing specific numbers based on their location [2]. - A telephone replay of the conference call will be available approximately one hour after the call ends, accessible until August 1, 2025, with a designated access code [3]. Group 2: Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with $7.6 billion in assets, 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 [4]. - Horizon Bancorp also provides business banking and treasury management services, with commercial lending making up over half of its total loans [4].

Group 1 - Horizon Bancorp, Inc. reported 1Q earnings that were mostly in line with expectations, aside from a one-time gain from the sale of the mortgage warehouse business [1] - The earnings report aligns with the analysis provided in a previous March report [1] Group 2 - No stock, option, or similar derivative positions are held by the analyst in any of the companies mentioned [1] - The article expresses the author's own opinions without receiving compensation from any company mentioned [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to Commission file number 0-10792 HORIZON BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Core Viewpoint - Horizon Bancorp (HBNC) shares have increased by 6.4% recently, closing at $14.74, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $18.50, representing a 25.5% upside [1] Price Targets - The average price targets from analysts range from a low of $17 to a high of $20.50, with a standard deviation of $1.66, indicating a relatively tight clustering of estimates [2] - The lowest estimate suggests a 15.3% increase from the current price, while the highest estimate indicates a 39.1% upside [2] Analyst Sentiment - There is strong agreement among analysts regarding HBNC's ability to report better earnings than previously predicted, which supports the view of potential upside [4] - Recent trends show three earnings estimates have been revised higher in the last 30 days, with no negative revisions, leading to a 5.1% increase in the Zacks Consensus Estimate [12] Zacks Rank - HBNC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside in the near term [13]

Financial Performance - Net income increased to $23493 thousand, compared to a loss of $10882 thousand in the previous quarter[9] - Diluted EPS was $054, compared to a loss of $025 in the previous quarter[9] - Net interest margin (NIM) expanded to 304%, a sixth consecutive quarter of expansion[9] - Non-interest income was $16499 thousand, compared to a loss of $28954 thousand in the previous quarter, including a $70 million pre-tax gain from the sale of the mortgage warehouse business[9, 10] Balance Sheet and Loan Growth - Total loans held for investment increased to $4909815 thousand[9] - Total deposits increased to $5765783 thousand[9] - Linked quarter annualized (LQA) loan growth of 5%, with commercial loan growth of 14% LQA[10] - Strategic reduction in borrowings of $330 million[10] Credit Quality - NPA/total assets ratio was 041%[9] - Annualized net charge-offs to average loans was 007%[9] Guidance - Full-year 2025 net interest income is expected to grow in the mid-teens[56] - Period-end total loans HFI to grow mid-single-digits[56]

Financial Data and Key Metrics Changes - Horizon Bancorp reported a net interest margin increase of 8 basis points to 3.04% in Q1 2025, marking the sixth consecutive quarter of margin expansion [26][27] - Noninterest income included a $7 million gain from the sale of the mortgage warehouse business, contributing to overall positive revenue growth [33][34] - Total expenses for Q1 2025 were $39.3 million, reflecting a sequential decline in salaries and benefits and outside services expenses [35][36] Business Line Data and Key Metrics Changes - Total loans held for investment grew by $63 million, with commercial loans increasing by $105 million, representing a 14% annualized growth rate [12][13] - Consumer loan balances decreased by $40 million, primarily due to a reduction in indirect auto lending, while core consumer loans remained flat [16][18] - Credit quality metrics remained strong, with nonperforming loans at 62 basis points of total loans held for investment [19][20] Market Data and Key Metrics Changes - Key markets contributing to loan growth included Troy, Kalamazoo, Grand Rapids, and Midland in Michigan, as well as Northwest Indiana [14] - The company noted stable pipelines and strong engagement with clients regarding potential macroeconomic impacts [15] Company Strategy and Development Direction - The company aims to execute an asset mix strategy focusing on higher-yielding lending portfolios to enhance long-term franchise value [9] - Horizon Bancorp is committed to maintaining a disciplined approach to deposit pricing and leveraging market volatility to improve funding costs [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, citing strong local market presence and diversified portfolios as competitive advantages [70][72] - The outlook for loan growth remains in the mid-single-digit range, with expectations for deposit growth in the low single digits [39][40] Other Important Information - The company completed the sale of its mortgage warehouse business, which added optionality to its capital position [7][8] - The allowance for credit losses increased by approximately $700,000 to $52.7 million, with a ratio of 1.07% to loans [20][21] Q&A Session Summary Question: Can you unpack the added capital optionality from the warehouse gain and any appetite for share repurchases? - Management indicated that they are pleased with their capital strategy and are considering multiple options, including stock repurchases, to enhance shareholder returns [48][50] Question: What is the yield pickup as you run off indirect and fund commercial loans? - The yield runoff in the indirect auto portfolio is in the mid-3s, while the average weighted rate for the commercial book was approximately 7.15% [58][61] Question: How is the mood of your client base, and what gives you confidence in your positive outlook? - Management noted a strong local presence and diversified portfolio as key factors contributing to their optimistic outlook, despite some caution among clients regarding macroeconomic conditions [68][70] Question: Can you provide an update on deposit pricing and trajectory? - Deposit costs have increased slightly, but management anticipates stability in total deposit costs moving forward, with potential benefits when the Fed changes rates [88][90] Question: How do you weigh efficiency efforts with plans to hire veteran bankers? - The commercial team has remained stable, and management does not foresee a need for wholesale additions of new lenders at this time [102][103]

Financial Data and Key Metrics Changes - Horizon's first quarter earnings reflect a sixth consecutive quarter of margin expansion, now above 3% [4] - The net interest margin increased by eight basis points to 3.04% [16] - Total expenses for the quarter were $39.3 million, showing a sequential decline in salaries and benefits [21][22] Business Line Data and Key Metrics Changes - Total loans held for investment grew by $63 million, with commercial loans increasing by $105 million, representing a 14% annualized increase [7][8] - Consumer loan balances decreased by $40 million, primarily due to a reduction in indirect auto lending [9][10] - Non-interest income included a $7 million gain from the sale of the mortgage warehouse business [20] Market Data and Key Metrics Changes - Key markets showing growth included Troy, Kalamazoo, Grand Rapids, and Midland, Michigan, as well as Northwest Indiana [8] - Commercial credit quality metrics remained strong, with past due loans greater than thirty days at 14 basis points and a non-performing loan ratio of 27 basis points [9][11] Company Strategy and Development Direction - The company is focused on executing an asset mix strategy towards higher yielding lending portfolios [6] - Horizon aims to enhance shareholder returns through various options, including stock repurchases and balance sheet repositioning [32] - The outlook for loan growth remains unchanged in the mid-single digit range for the year [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive outlook due to strong local market presence and diversified portfolio [48][49] - The company is monitoring macroeconomic trends and their potential impact on the portfolio [13] - Management anticipates continued margin expansion and stable pipelines for commercial loans [17][24] Other Important Information - The allowance for credit losses increased by approximately $700,000 to $52.7 million, with an ACL to loan ratio of 1.07% [12] - The company expects total reported expenses for 2025 to be flat to up low single digits relative to 2024 [25] Q&A Session Summary Question: Can you unpack the capital optionality from the warehouse team and any appetite for share repurchases? - Management noted that they are pleased with their capital strategy and are considering stock repurchases due to attractive price-to-book levels [30][32] Question: What is the yield pickup as you run off indirect auto and fund commercial loans? - The effective yield on the indirect auto portfolio is in the mid-3s, while the average weighted rate for the commercial book was roughly 7-7.15% [37][40] Question: How is the mood of your client base regarding loan growth? - Management indicated a positive outlook, emphasizing strong local market engagement and a diversified portfolio [47][48] Question: What are the dynamics occurring on the funding side regarding deposit growth? - Management noted a shift towards more time deposits and less commercial growth, with competitive dynamics varying by market [82] Question: How do you weigh efficiency efforts with plans to hire veteran bankers? - The commercial team has been stable, with no immediate plans for wholesale additions, focusing instead on maximizing current capacity [75] Question: How do you weigh the worsening economic forecast into reserve levels? - Management acknowledged that economic forecasts could impact the allowance ratio, but specific reserves released masked some of the changes [78]