Question · Q3 2025
Terry McEvoy asked about Horizon Bancorp Inc.'s balance sheet rate neutrality, questioning if the current mix (commercial-heavy, fewer high-beta deposits, less fixed-rate assets) suggests more asset sensitivity, and how the company plans to play offense in Michigan while balancing expense outlook.
Answer
EVP and CFO John Stewart clarified that the balance sheet is very modestly asset-sensitive, with approximately 25% floating loans and minimal floating securities, supported by strategic deposit positioning to mitigate significant impact from rate changes. CEO and President Thomas Prame addressed the Michigan market, noting optimistic growth opportunities due to market transactions and prior human capital investments in commercial and treasury teams. He emphasized leveraging existing expenses rather than adding significantly to the expense base for growth.