Brian Martin

Damon Del Monte

Nathan Race

Brendan Nosal

David Long

Terence McEvoy

Terry McEvoy

- Horizon Bancorp Inc. (HBNC) reported a **Q3 2025 Net Interest Margin (NIM)** of **3.52%**, an increase of **29 basis points** from the previous quarter, marking the eighth consecutive quarter of expansion.  **[0000706129_2201271_5]**  The company anticipates NIM to further expand to **4.15%-4.25%** in Q4 2025, exiting the year at **4.2%-4.3%**, and expects it to remain in this range through 2026.  **[0000706129_2201271_5]** **[0000706129_2201271_7]** 
- The company successfully executed a strategic balance sheet repositioning, which exceeded initial expectations and significantly curtailed liquidity and interest rate risk.  **[0000706129_2201271_1]** **[0000706129_2201271_5]**  This involved the planned runoff and sale of lower-yielding indirect auto loans, the reduction of high-cost non-core transactional deposits, and the redemption of previous subordinated debt.  **[0000706129_2201271_1]** **[0000706129_2201271_5]** 
- For **full-year 2026**, HBNC expects **earnings per share (EPS)** to align with the current consensus estimate of approximately **$2 per share**.  **[0000706129_2201271_7]**  Non-FTE net interest income is projected to grow in the low double-digit range, with the effective tax rate anticipated to be between **18%-20%**.  **[0000706129_2201271_7]** 
- With a de-risked balance sheet and strong capital generation, HBNC is now better positioned for accretive M&A opportunities, targeting institutions between **$300 million and several billion dollars** in Michigan and Indiana.  **[0000706129_2201271_9]** **[0000706129_2201271_11]**

Horizon Bancorp Inc. Reports Strong Q3 2025 Results and Provides Positive 2026 Guidance

- Horizon Bancorp Inc. successfully completed a strategic **balance sheet repositioning** in Q3 2025, significantly curtailing liquidity and interest rate risk.  **[0000706129_2201248_1]** **[0000706129_2201248_5]** 
- The net interest margin (NIM) expanded to **3.52%** in Q3 2025, with an exit run rate above **4%** in September.  **[0000706129_2201248_1]** **[0000706129_2201248_5]**  Management projects NIM to reach **4.15% to 4.25%** in Q4 2025 and stabilize at **4.2% to 4.3%** through 2026.  **[0000706129_2201248_5]** **[0000706129_2201248_7]** 
- Q3 2025 loan balances were impacted by the planned sale of the indirect auto loan portfolio, which incurred a **$7.7 million** loss, partially offset by a **$3.1 million** allowance release.  **[0000706129_2201248_1]** **[0000706129_2201248_6]**  Net commercial loan growth was **$58 million**.  **[0000706129_2201248_3]** 
- The company provided 2026 guidance, aligning with consensus EPS estimates of approximately **$2 per share**.  **[0000706129_2201248_7]** 
- With a de-risked balance sheet and strong capital generation, Horizon Bancorp Inc. is now strategically positioned for logical and accretive M&A, targeting deals from **$300 million to $400 million** up to several billion dollars in Michigan and Indiana.  **[0000706129_2201248_8]** **[0000706129_2201248_9]**

Horizon Bancorp Inc. Reports Q3 2025 Results and Provides 2026 Guidance

- Horizon Bancorp reported a **net loss of $222.0 million**, or **$(4.69) per diluted share**, for the three months ended September 30, 2025, primarily due to the successful execution of its strategic balance sheet repositioning.  **[706129_02b5e18cd2e14fb0ad49d5dc6bf27ed6_0]**  This compares to net income of $20.6 million, or $0.47 per diluted share, in the second quarter of 2025.  **[706129_02b5e18cd2e14fb0ad49d5dc6bf27ed6_0]** 
- The strategic balance sheet repositioning included a **$299.1 million loss on the sale of investment securities** and a pre-tax loss of $7.7 million on the sale of the indirect auto portfolio.  **[706129_02b5e18cd2e14fb0ad49d5dc6bf27ed6_4]**  This led to a **decrease in total assets by $939.6 million** to $6.7 billion as of September 30, 2025.  **[706129_02b5e18cd2e14fb0ad49d5dc6bf27ed6_5]** 
- Despite the net loss, the company's **net interest margin (FTE) expanded for the eighth consecutive quarter to 3.52%** for the third quarter of 2025, up from 3.23% in the second quarter of 2025.  **[706129_02b5e18cd2e14fb0ad49d5dc6bf27ed6_0]** 
- Total borrowings decreased by **$720.1 million** due to the payoff of FHLB advances, and the company completed a **$100.0 million subordinated notes offering** during the quarter.  **[706129_02b5e18cd2e14fb0ad49d5dc6bf27ed6_5]**

Horizon Bancorp Reports Q3 2025 Net Loss Amid Strategic Balance Sheet Repositioning

- Horizon Bancorp, Inc. successfully completed a public offering of common stock on August 22, 2025, generating **$98.6 million** in net proceeds from **7,138,050 shares**.  **[706129_0000706129-25-000157_projectolympiapressrelease.htm:1]** 
- On August 29, 2025, the company closed on **$100,000,000** in fixed-to-floating rate subordinated notes due 2035, with a fixed interest rate of **7.00%** until September 15, 2030, which was favorable compared to initial expectations.  **[706129_0000706129-25-000157_projectolympiapressrelease.htm:1]** 
- Horizon sold approximately **$1.7 billion** of securities, realizing a pre-tax loss of **$299.1 million** (favorable to initial expectations), and pre-paid **$700 million** of FHLB puttable advances with a **$12.7 million** penalty (also favorable to expectations).  **[706129_0000706129-25-000157_projectolympiapressrelease.htm:1]** 
- The company redeployed approximately **$600 million** of proceeds into investment securities yielding **5.27%** on a tax-equivalent basis and plans to sell approximately **$190 million** of indirect auto loans and reduce over **$125 million** in non-core deposit balances by the end of Q3 2025.  **[706129_0000706129-25-000157_projectolympiapressrelease.htm:1]**

Horizon Bancorp, Inc. Announces Successful Balance Sheet Repositioning

- Horizon Bancorp, Inc. completed a public offering of common stock, generating **$98.6 million** in net proceeds, and issued **$100 million** in fixed-to-floating rate subordinated notes due 2035 at a **7.00%** fixed interest rate until September 2030.  **[706129_2f0f767a64e946858cc09fb19470a9ee_1]** 
- The company sold approximately **$1.7 billion** of securities, incurring a pre-tax loss of **$299.1 million**, and used the liquidity to pre-pay **$700 million** of FHLB puttable advances.  **[706129_2f0f767a64e946858cc09fb19470a9ee_1]** 
- Horizon Bancorp redeployed **$600 million** of proceeds into investment securities yielding **5.27%** on a tax-equivalent basis and has signed non-binding letters of intent to sell approximately **$190 million** of indirect auto loans by the end of September 2025.  **[706129_2f0f767a64e946858cc09fb19470a9ee_1]** 
- The company has provided redemption notification for its previously outstanding subordinated notes, with an aggregate principal amount of **$56.5 million** as of June 30, 2025, and anticipates reducing over **$125 million** of non-core, higher-cost transactional deposit balances within the third quarter of 2025.  **[706129_2f0f767a64e946858cc09fb19470a9ee_1]**

HORIZON BANCORP INC /IN/ (HBNC)