Financial Data and Key Metrics Changes - Horizon Bancorp reported an annualized return on average assets above 1.6% and a return on average equity approaching 16% for Q4 2025, with a net interest margin of 4.29% [4][15] - The net interest margin increased by 77 basis points from the previous quarter, marking the ninth consecutive quarter of expansion [15][16] - Total loans reached $4.9 billion, an increase of $60.7 million from the previous quarter, with commercial loans growing by $76 million, representing 9% annualized growth [7][8] Business Line Data and Key Metrics Changes - Commercial relationship lending remains the primary strategy, with modest declines in consumer loans and residential mortgages, which are primarily sold into the secondary market [7][8] - The commercial loan portfolio is well-diversified, with 28% in commercial and industrial and 72% in commercial real estate [7] - Credit quality metrics remain strong, with substandard loans decreasing to 1.22% of total loans, down from 1.31% in the previous quarter [9][10] Market Data and Key Metrics Changes - The deposit portfolio shows strength, with non-interest-bearing balances up year over year, reflecting improved cost structure [12][13] - The company is well-positioned in attractive markets in Michigan and Indiana, with a focus on organic deposit funding to support loan growth [12][14] Company Strategy and Development Direction - Horizon aims to create sustainable long-term value for shareholders through a disciplined operating model and consistent profitable growth [6][24] - The company plans to leverage its community banking model and expand its branch network selectively in key markets [60][61] - The focus remains on organic growth rather than acquisitions, although the company is open to opportunistic talent additions [41][44] Management's Comments on Operating Environment and Future Outlook - Management views the outlook for 2026 as slightly more favorable than previously estimated, with expectations for mid-single-digit growth in loans and deposits [28][21] - The company anticipates stable net interest margins and continued strong performance metrics, with a focus on maintaining a conservative credit culture [15][23] - Economic conditions and credit quality trends will influence future provision expenses [11] Other Important Information - Non-interest income for Q4 was reported at $11.5 million, with a year-over-year increase in total fee income driven by wealth management and mortgage fees [18] - Expenses for the quarter were in line with expectations at $40.6 million, reflecting seasonal increases and legal fees related to legacy items [19] Q&A Session Summary Question: Outlook for 2026 and potential risks - Management sees a more optimistic outlook for net interest income, with organic core deposit growth being a key lever for upside [28][30] Question: Loan growth and consumer loan performance - The company does not plan to push for accelerated growth in consumer loans, focusing instead on commercial lending [31][32] Question: Asset quality and substandard loans - Management indicates that increases in substandard loans are modest and not reflective of sector-wide stress, with overall metrics remaining strong [33][34] Question: Margin drivers and loan pricing - New loan originations are yielding above 6.5%, while cash flows from the portfolio are below 6%, providing a favorable margin environment [37][39] Question: Capital deployment priorities - The company will focus on organic growth opportunities while remaining disciplined in capital deployment decisions [41][42] Question: Fee income drivers for 2026 - Fee income growth is expected to be balanced across various segments, with no single area driving significant changes [50][52] Question: Commercial pipeline and seasonality - The commercial loan pipeline is strong, though seasonality may affect quarterly fluctuations in originations [72]

Horizon Bancorp (NasdaqGS:HBNC) Q4 2025 Earnings call January 22, 2026 08:30 AM ET Company ParticipantsTerry McEvoy - Managing DirectorJohn Stewart - EVP and CFOLynn M. Kerber - EVP and Chief Commercial Banking OfficerMark Secor - EVP and Chief Administration OfficerDamon DelMonte - Managing DirectorBrendan Nosal - DirectorThomas Prame - CEO and PresidentConference Call ParticipantsNathan Race - Managing Director and Senior Research AnalystBrian Martin - AnalystOperatorGood morning, everyone, and welcome to ...

Financial Data and Key Metrics Changes - Horizon Bancorp reported an annualized return on average assets above 1.6% and a return on average equity approaching 16% for Q4 2025, with a net interest margin of 4.29% [4][15] - Total loans increased to $4.9 billion, up $60.7 million from Q3 2025, with commercial loans growing by $76 million, representing 9% annualized growth [6][10] - The net charge-offs for Q4 were $1 million, representing an annualized charge-off rate of 6 basis points, with full-year net charge-offs totaling approximately $2.9 million [10][19] Business Line Data and Key Metrics Changes - Commercial relationship lending remains the lead strategy, with modest declines in consumer loans and residential mortgage loans primarily sold into the secondary market [6][8] - The commercial loan portfolio is diversified, with 28% in commercial and industrial and 72% in commercial real estate [6][7] - Residential mortgage lending volumes were flat, aligning with the strategy to create capacity for commercial lending activities [8] Market Data and Key Metrics Changes - Loan growth was primarily driven by markets in Michigan and Indiana, particularly in Troy, Kalamazoo, Lake County, and Metro Indianapolis [7][8] - The deposit portfolio showed strength, with non-interest-bearing balances up year-over-year, reflecting improved cost structure within interest-bearing segments [12][13] Company Strategy and Development Direction - The company aims to create sustainable long-term value for shareholders through a disciplined operating model and consistent profitable growth [5][20] - Horizon plans to leverage its community banking model and expand its branch network in attractive markets, with a focus on organic growth [41][60] Management's Comments on Operating Environment and Future Outlook - Management views the outlook for 2026 as slightly more favorable, with expectations for net interest income growth in the low teens [27][40] - The company anticipates mid-single-digit growth in loans and deposits, with a focus on organic deposit funding to support loan growth [20][21] Other Important Information - The net interest margin increased by 77 basis points to 4.29%, marking the ninth consecutive quarter of expansion [15][16] - The allowance for credit losses increased from $50.2 million to $51.3 million, representing 1.05% of loans held for investment [10][11] Q&A Session Summary Question: Outlook for 2026 and potential risks - Management views the outlook as slightly more favorable, with net interest income growth expected to be higher than previously estimated [27] Question: Loan growth and consumer loan performance - The company maintains a commercial banking model and does not plan to push for accelerated growth in consumer loans [30] Question: Asset quality and substandard loans - Substandard loans increased modestly, but overall metrics remain strong, with a decrease in substandard loans over the past year [32] Question: Margin drivers and loan pricing - New origination yields are above 6.5%, with cash flows from the portfolio below 6%, indicating a favorable margin environment [38][39] Question: Capital deployment priorities - The company will focus on organic growth opportunities while remaining disciplined in capital deployment decisions [41][42] Question: Fee income drivers for 2026 - Fee income growth is expected to be balanced across various segments, with no single area driving significant changes [50]

David M Findlay Chairman & CEO WARSAW, Ind., Jan. 07, 2026 (GLOBE NEWSWIRE) -- Lake City Bank is pleased to announce that David M. Findlay, Chairman and Chief Executive Officer, has been named Chairman of the Indiana Bankers Association Board of Directors for 2026. ”The Indiana Bankers Association is one of the premier state banking associations in the country thanks to an engaged membership and an exceptional leadership team at the IBA. The IBA has a proven track record of proactively working with Indi ...

Company Expansion - Lake City Bank has announced the acquisition of a property at 6388 Mills Drive in Whitestown, Indiana, with plans to renovate it into a full-service branch expected to open in 2026, marking the bank's expansion into Boone County [1][2] - This new branch will be the bank's 10th office in the Indianapolis Region, reflecting the bank's growth since entering the market in 2011 [2] Renovation and Services - Renovations will begin later this year to convert the existing structure, which previously housed several restaurants, into a modern banking facility that will cater to both personal and business banking needs [3] - The new branch will include a full-service lobby, drive-up banking, and an ATM [3] Strategic Location - The location is strategically positioned near Interstate 65, surrounded by residential neighborhoods and retail and industrial businesses, which will provide convenient access for customers and enhance community engagement [4] - The bank's community banking model focuses on building long-term customer relationships while offering technology-forward solutions for retail and commercial clients [4] Company Profile - Lake City Bank is a $6.9 billion bank headquartered in Warsaw, Indiana, with a total of 54 branch offices and a robust digital banking platform [4]

Core Insights - Lake City Bank has appointed Gregory C. Brown as Senior Vice President and Commercial Elkhart Regional Manager to lead the newly formed Commercial Elkhart Region, aimed at better serving the growing business community in Elkhart [1][2]. Company Overview - Lake City Bank, headquartered in Warsaw, Indiana, has a total asset value of $6.9 billion and operates 54 branch offices, focusing on Central and Northern Indiana communities [4]. - The bank was founded in 1872 and emphasizes a community banking model that prioritizes long-term customer relationships while providing technology-forward solutions for both retail and commercial clients [4]. Leadership and Strategy - David M. Findlay, Chairman and CEO, highlighted that the creation of a dedicated team for Elkhart reflects the bank's success and growth in the area over the past 35 years [2]. - Brown brings 30 years of experience in financial services, including a previous role at Lake City Bank from 2016 to 2021, and has been actively involved in the Elkhart community through various organizations [3]. Regional Focus - The new Commercial Elkhart Region will consist of a team of three Commercial Banking Officers, while the existing Commercial North Region will continue to serve clients in St. Joseph County and surrounding areas [2][3]. - The regional realignment is expected to create new opportunities for the Commercial North Region team in South Bend and nearby areas [3].