Horizon Bancorp(US:HBNC)2025-10-22 20:18Financial 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].