Horizon Bancorp, Inc. Reports First Quarter 2025 Results

Core Viewpoint - Horizon Bancorp, Inc. reported strong financial results for the first quarter of 2025, showcasing continued growth in key metrics, including net income and loan growth, alongside effective cost management strategies [2][3]. Financial Performance - Net income for Q1 2025 was $23.9 million, or $0.54 per diluted share, a significant improvement from a net loss of $10.9 million in Q4 2024 and an increase from $14.0 million in Q1 2024 [3][10]. - Net interest income was $52.3 million, slightly down from $53.1 million in Q4 2024, while the net interest margin expanded to 3.04%, up from 2.97% in the previous quarter [12][9]. - Total non-interest income was $16.5 million, a recovery from a loss of $29.0 million in Q4 2024, primarily due to a pre-tax gain from the sale of the mortgage warehouse business [17][9]. Loan and Deposit Growth - Total loans held for investment increased by 5% on an annualized basis, with organic commercial loan growth of $103.3 million, or 14% annualized [9]. - Total deposits rose by $165.1 million, or 2.9%, to $5.8 billion, with time deposits increasing by 14.3% during the quarter [25]. Expense Management - Non-interest expenses decreased to $39.3 million from $44.9 million in Q4 2024, driven by lower salaries and employee benefits expenses [19][21]. - The efficiency ratio improved to 57.16%, reflecting the company's commitment to cost management [10]. Credit Quality - Credit quality remained strong, with annualized net charge-offs at 0.07% of average loans, and non-performing assets increased slightly to 0.41% of total assets [29][30]. - The allowance for credit losses was stable at 1.07% of loans held for investment [16]. Capital Position - As of March 31, 2025, the total capital ratio was 14.28%, and the book value per common share increased to $17.72 [27][28]. - Tangible common equity totaled $611.4 million, with a tangible common equity to tangible assets ratio of 8.20% [28].