Horizon Bancorp, Inc. Announces Successful Execution of Balance Sheet Repositioning

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].