Horizon Bancorp, Inc. Announces Closing of Common Stock Offering

Rhea-AI Summary

Horizon Bancorp (NASDAQ: HBNC) has successfully completed its previously announced underwritten public offering of common stock. The company sold 7,138,050 shares at $14.50 per share, which includes 931,050 additional shares from the fully exercised underwriters' option.

The offering generated gross proceeds of approximately $103.5 million before deducting underwriting discounts and offering expenses. The company plans to use the net proceeds for general corporate purposes, including potential balance sheet repositioning. Keefe, Bruyette & Woods and Performance Trust Capital Partners served as joint book-running managers for the offering.

["Raised significant capital of $103.5 million through stock offering", "Successfully completed full exercise of underwriters' option for additional shares", "Strengthens balance sheet and provides flexibility for corporate initiatives"]

Positive

• None.

Negative

• Potential dilution for existing shareholders
• Stock offering price of $14.50 may represent a discount to market price

Insights

Financial Analyst

Horizon Bancorp successfully raised $103.5M through stock offering, diluting existing shareholders while strengthening its capital position.

Horizon Bancorp has completed its previously announced public offering, successfully raising $103.5 million by issuing 7,138,050 shares of common stock at $14.50 per share. This includes the full exercise of the underwriters' option for an additional 931,050 shares, indicating strong demand for the offering.

The capital raise represents a significant transaction for Horizon, which plans to use the proceeds for general corporate purposes and potentially repositioning its balance sheet. This language typically suggests the bank may be looking to strengthen its capital ratios, reduce higher-cost liabilities, or address asset quality concerns.

For existing shareholders, this offering creates immediate dilution, as the new shares increase the outstanding share count. However, the successful completion with full exercise of the underwriters' option suggests institutional confidence in Horizon's strategy.

The participation of respected financial institutions like Keefe, Bruyette & Woods (a Stifel company) and Performance Trust Capital Partners as joint book-runners lends credibility to the offering. These specialized financial services investment banks typically work with banks they believe have sound fundamentals or viable turnaround plans.

While the press release doesn't specify exact capital ratios or balance sheet challenges being addressed, the successful raise gives Horizon financial flexibility to strengthen its position in a challenging banking environment. The fact that the offering was conducted under an existing shelf registration indicates the bank had previously anticipated potential capital needs.

MICHIGAN CITY, Ind., Aug. 22, 2025 (GLOBE NEWSWIRE) -- Horizon Bancorp, Inc. (NASDAQ: HBNC) (“Horizon”), the parent company of Horizon Bank, today announced the closing of the previously announced underwritten public offering of 7,138,050 shares of its common stock (the “Offering”), including 931,050 shares of its common stock sold pursuant to the underwriters’ option to purchase additional shares, which was exercised in full, at a price to the public of $14.50 per share. The aggregate gross proceeds of the Offering were approximately $103.5 million before deducting underwriting discounts and estimated offering expenses.

Horizon intends to use the net proceeds of the Offering for general corporate purposes, including in support of the potential repositioning of its balance sheet.

Keefe, Bruyette & Woods, Inc., A Stifel Company and Performance Trust Capital Partners, LLC acted as joint book-running managers for the Offering.

The Offering was made pursuant to a shelf registration statement on Form S-3 (File No. 333-282292) that was filed with and declared effective by the Securities and Exchange Commission (“SEC”). A final prospectus supplement and accompanying prospectus has been filed with the SEC to which this communication relates. Copies of these documents are available at no charge by visiting the SEC’s website at www.sec.gov. Alternatively, copies may be obtained by contacting: Keefe, Bruyette & Woods, A Stifel Company by telephone at (800) 966-1559 or by e-mail at USCapitalMarkets@kbw.com or Performance Trust Capital Partners, LLC by telephone at (312) 521-1638 or by e-mail at syndicate@performancetrust.com.

This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ: HBNC) is the $7.7 billion-asset (as of June 30, 2025) commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Forward-Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814-5833

FAQ

How much did Horizon Bancorp (HBNC) raise in its August 2025 stock offering?

Horizon Bancorp raised approximately $103.5 million in gross proceeds through the offering of 7,138,050 shares at $14.50 per share.

What is the purpose of Horizon Bancorp's 2025 stock offering?

The company intends to use the net proceeds for general corporate purposes, including supporting the potential repositioning of its balance sheet.

How many shares did Horizon Bancorp (HBNC) sell in its 2025 public offering?

Horizon Bancorp sold 7,138,050 shares in total, which includes 931,050 shares from the fully exercised underwriters' option.

Who were the underwriters for Horizon Bancorp's 2025 stock offering?

Keefe, Bruyette & Woods (A Stifel Company) and Performance Trust Capital Partners acted as joint book-running managers for the offering.