Horizon Bancorp, Inc. Reports Strong Second Quarter 2026 Results, Highlighted by Continued Peer Leading Profitability Metrics

Rhea-AI Summary

Horizon Bancorp (NASDAQ: HBNC) reported second quarter 2026 net income of $24.9 million, or $0.49 per diluted share, versus $26.2 million in Q1 2026 and $20.6 million in Q2 2025. Results included a previously announced pre-tax legal charge of $3.1 million, or $0.05 per share.

Return on average assets was 1.54% and return on average tangible common equity was 18.05%. Net interest income rose to $63.5 million, up 14.7% year over year, as the net FTE interest margin expanded to 4.37% from 4.29% in Q1 2026 and 3.23% a year ago. Loans held for investment increased 6.6% on a linked-quarter annualized basis, led by $63.5 million of organic commercial growth, while credit metrics remained solid with annualized net charge-offs of 0.05% and non-performing assets at 0.66% of total assets.

Total assets were $6.6 billion and total deposits $5.4 billion, with a 91.93% loan-to-deposit ratio. Capital stayed strong, with an estimated total risk-based capital ratio of 15.01%, tangible common equity ratio of 8.81%, and tangible book value per share rising to $11.06.

Positive

• Net interest income $63.5 million, up 14.7% year over year
• Net FTE interest margin 4.37% vs. 4.29% in Q1 2026 and 3.23% in Q2 2025
• ROA 1.54% and return on average tangible common equity 18.05% in Q2 2026
• Loans HFI up $75.9 million; 6.6% linked-quarter annualized growth, led by commercial
• Credit quality annualized net charge-offs 0.05% and non-performing assets 0.66% of assets
• Tangible book value per share increased to $11.06; tangible common equity ratio 8.81%
• Total risk-based capital ratio estimated at 15.01%; Tier 1 leverage ratio 10.17%

Negative

• Net income down to $24.9 million from $26.2 million in Q1 2026, impacted by $3.1 million legal charge
• Total deposits decreased $22.1 million (0.4%) quarter over quarter to $5.4 billion
• Non-interest expense rose to $43.8 million from $40.7 million in Q1 2026
• Provision for credit losses increased to $0.9 million vs. $0.4 million in Q1 2026

News Explained

The $3.1 million legal charge is already reflected in second-quarter results, and the related accrual will remain in place until Horizon finalizes its appeal process.

News Market Reaction – HBNC

-0.79%

1 alert

-0.79% Session close to close

$1.05B Market Cap

1.39K Volume

In the Jul 23 session, HBNC declined 0.79%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Director Brian C Walker reported a purchase of 1,306 shares at $18.36. That insider activity adds co...

Analysis

Director Brian C Walker reported a purchase of 1,306 shares at $18.36. That insider activity adds context to the earnings report, while the legal charge and preliminary capital ratios remain items to monitor.

Key Figures

Net income and diluted EPS: $24.9M; $0.49 per diluted share Legal charge: $3.1M pre-tax; $0.05 per diluted share Return on average assets: 1.54% +5 more

8 metrics

Net income and diluted EPS $24.9M; $0.49 per diluted share Q2 2026

Legal charge $3.1M pre-tax; $0.05 per diluted share Q2 2026 impact

Return on average assets 1.54% Q2 2026

Return on average tangible common equity 18.05% Q2 2026

Net interest income $63.5M Q2 2026; up 14.7% year over year

Net FTE interest margin 4.37% Q2 2026; up from 4.29% in Q1 2026

Loans and deposits growth $83M loans; $125M deposits First half of 2026

Annualized net charge-offs 0.05% of average loans Q2 2026

Previous Earnings Reports

5 past events · Latest: Apr 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 22	Q1 earnings	Positive	+1.4%	Q1 earnings showed profitability metrics and strong deposit growth alongside stable loans
Jan 21	Q4 earnings	Positive	+2.1%	Q4 earnings cited higher net interest margin and commercial loan growth despite lower deposits
Jul 23	Q2 earnings	Positive	-3.0%	Q2 earnings reported margin expansion, commercial loan growth, and low charge-offs
Jan 22	Q4 earnings	Negative	+4.7%	Q4 loss followed a large securities-sale loss and strategic balance-sheet actions
Oct 23	Q3 earnings	Positive	+6.0%	Q3 earnings showed improving profitability, margin expansion, and strategic balance-sheet initiatives

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-matched earnings reactions were mixed: three positive releases aligned with gains, while two releases diverged from their headline sentiment.

Key Terms

net interest margin, fully taxable equivalent, net charge-offs, non-performing assets, +1 more

5 terms

net interest margin financial

"the net interest margin has been above 4.30%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

fully taxable equivalent financial

"The net interest margin, on a fully taxable equivalent ("FTE") basis"

A fully taxable equivalent converts a tax-free yield into the pretax yield you would need from a taxable investment to get the same after-tax return, using an investor’s marginal tax rate. Think of it like inflating a discounted price to the full sticker price so you can compare items side‑by‑side; investors use it to fairly compare tax-exempt securities with taxable alternatives and choose the better after-tax income.

net charge-offs financial

"Credit quality remained strong, with annualized net charge offs of 0.05%"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

non-performing assets financial

"Non-performing assets remain well within expected and historical ranges"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

tangible common equity financial

"Tangible common equity totaled $565.1 million at June 30, 2026"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MICHIGAN CITY, Ind., July 22, 2026 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2026.

"Horizon’s results through the first six months of 2026 demonstrated the consistency of our profitability profile and the strength of Horizon’s high quality community banking model. Annualized returns on average assets have maintained around the 1.60% mark, and the net interest margin has been above 4.30%. Despite a notable shift in the interest rate outlook, we believe Horizon’s peer leading profitability metrics will have resiliency going forward," President and CEO, Thomas Prame stated. "We are encouraged by the positive momentum and predictability we see in our business model. Over the first half of 2026, loans and deposits have grown $83 million and $125 million, respectively, which aligns well with our mid-single digit organic growth outlook that is complimented by continued advancement in our fee income verticals and disciplined approach to expense management. We expect this low-volatility, profitability first growth model to drive significant value for our shareholders over time as the business compounds capital at peer-leading levels."

Net income for the three months ended June 30, 2026 was $24.9 million, or $0.49 per diluted share, compared to net income of $26.2 million, or $0.51, for the first quarter of 2026 and net income of $20.6 million, or $0.47 per diluted share, for the second quarter of 2025. As previously announced, results for the second quarter of 2026 were negatively impacted by the pre-tax legal charge of $3.1 million, or $0.05 per diluted share.

Net income for the six months ended June 30, 2026 was $51.1 million, or $0.99 per diluted share, compared to net income of $44.6 million, or $1.01, for the six months ended June 30, 2025.

Second Quarter 2026 Highlights

• Durability of top-tier performance metrics are reflective of the strong performance of Horizon’s community banking model. The Company generated a return on average assets of 1.54% and a return on average tangible common equity of 18.05%, despite the legal charge.

• Net interest income of $63.5 million increased 14.7% compared with $55.4 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis¹, at 4.37% showed strong quarter over quarter expansion from 4.29% as of the three months ended March 31, 2026, and was significantly higher than the 3.23% reported in the comparable year ago period.

• Funding continues to trend favorably, with non-time deposit balances continuing to grow and total interest-bearing deposit costs remaining low, still down 33 basis points year over year.

• Total loans held for investment ("HFI") increased 6.6% compared to the linked quarter annualized, with strong organic commercial loan growth of $63.5 million, or 7.4% annualized, led by commercial and industrial loans. Loan pipelines continue to be consistent, reflective of Horizon’s attractive markets and embedded community banking model.

• Credit quality remained strong, with annualized net charge offs of 0.05% of average loans during the second quarter. Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.66%.

• Expenses for the second quarter were well managed at $43.8 million, including the $3.1 million legal charge, as the Company remains committed to generating positive operating leverage through a more efficient expense base.

___________________
¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
Income statement:
Net interest income	$	63,490			$	62,240			$	63,476			$	58,386			$	55,355
Provision for credit losses		916				391				1,630				(3,572	)			2,462
Non-interest income (loss)		12,014				11,243				11,463				(295,334	)			10,920
Non-interest expense		43,844				40,747				40,615				52,952				39,417
Income tax expense (benefit)		5,836				6,177				5,773				(64,338	)			3,752
Net Income (Loss)	$	24,908			$	26,168			$	26,921			$	(221,990	)		$	20,644
Per share data:
Basic earnings (loss) per share	$	0.49			$	0.51			$	0.53			$	(4.69	)		$	0.47
Diluted earnings (loss) per share		0.49				0.51				0.53				(4.69	)			0.47
Cash dividends declared per common share		0.16				0.16				0.16				0.16				0.16
Book value per common share		14.21				13.69				13.50				12.96				18.06
Market value - high		20.29				18.68				18.47				16.88				15.88
Market value - low		16.76				15.57				15.04				15.01				12.92
Weighted average shares outstanding - Basic		51,082,827				50,987,426				50,975,693				47,311,642				43,794,490
Weighted average shares outstanding - Diluted		51,304,962				51,243,002				51,277,134				47,311,642				44,034,663
Common shares outstanding (end of period)		51,093,048				51,056,888				50,978,030				50,970,530				43,801,507
Key ratios:
Return on average assets		1.54	%			1.62	%			1.63	%		(12.07)%					1.09	%
Return on average stockholders' equity		13.97				14.99				15.71				(120.37	)			10.49
Total equity to total assets		11.05				10.65				10.69				9.84				10.34
Total loans to deposit ratio		91.93				90.15				92.62				87.41				87.52
Allowance for credit losses to HFI loans		1.05				1.05				1.05				1.04				1.09
Annualized net charge-offs of average total loans(1)		0.05				0.05				0.08				0.07				0.02
Efficiency ratio		58.07				55.45				54.20				(22.35	)			59.47
Key metrics (Non-GAAP)(2)
Net FTE interest margin		4.37	%			4.29	%			4.29	%			3.52	%			3.23	%
Return on average tangible common equity		18.05				19.02				20.66				(155.03	)			13.24
Tangible common equity to tangible assets		8.81				8.39				8.38				7.60				8.37
Tangible book value per common share	$	11.06			$	10.52			$	10.32			$	9.76			$	14.32
(1)Average total loans includes loans held for investment and held for sale.
(2)Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $63.5 million in the second quarter of 2026, compared to $62.2 million in the first quarter of 2026, driven by the continued strength of the Company's net FTE interest margin¹, which increased to 4.37% for the second quarter of 2026, compared to 4.29% the first quarter of 2026. The margin's resilience is reflective of continued disciplined loan and deposit pricing, a favorable cash reinvestment profile and strong commercial loan growth during the quarter.

___________________
¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Provision for Credit Losses

During the second quarter of 2026, the Company recorded a provision for credit losses of $0.9 million. This compares to a recorded provision for credit losses of $0.4 million during the first quarter of 2026, and $2.5 million during the second quarter of 2025. The increase in the provision for credit losses during the second quarter of 2026 when compared with the first quarter of 2026 was primarily due to net loan growth and an increase in specific reserves on select commercial loans.

For the second quarter of 2026, net charge-offs were $0.6 million, or an annualized 0.05% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the first quarter of 2026, and net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, in the second quarter of 2025.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.05% at June 30, 2026, consistent with March 31, 2026, and down from 1.09% at June 30, 2025.

Non-Interest Income

For the Quarter Ended	June 30,			March 31,			December 31,			September 30,				June 30,
(Dollars in Thousands)		2026			2026			2025			2025				2025
Non-interest (Loss) Income
Service charges on deposit accounts	$	3,376		$	3,524		$	3,341		$	3,474			$	3,208
Wire transfer fees		67			63			66			71				69
Interchange fees		3,595			3,373			3,445			3,510				3,403
Fiduciary activities		1,501			1,556			1,560			1,363				1,251
Gain (loss) on sale of investment securities		—			—			1			(299,132	)			—
Gain on sale of mortgage loans		1,576			1,090			1,296			1,208				1,219
Mortgage servicing income net of impairment		350			337			352			351				375
Increase in cash value of bank owned life insurance		345			333			360			379				346
Other income (loss)		1,204			967			1,042			(6,558	)			1,049
Total non-interest (loss) income	$	12,014		$	11,243		$	11,463		$	(295,334	)		$	10,920

Total non-interest income was $12.0 million in the second quarter of 2026, compared to non-interest income of $11.2 million in the first quarter of 2026. The increase in non-interest income of $0.8 million is primarily attributable to an increase in gains on the sale of mortgage loans, due to increased volumes and wider margins on loan sales, and higher activity-based interchange fees. All other components of non-interest income remained relatively stable quarter over quarter.

Non-Interest Expense

For the Quarter Ended	June 30,				March 31,			December 31,			September 30,			June 30,
(Dollars in Thousands)		2026				2026			2025			2025			2025
Non-interest Expense
Salaries and employee benefits	$	24,194			$	23,187		$	21,895		$	22,698		$	22,731
Net occupancy expenses		3,698				4,197			3,718			3,321			3,127
Data processing		3,631				3,353			3,128			2,933			2,951
Professional fees		(64	)			929			1,083			808			735
Outside services and consultants		2,537				2,764			3,035			3,844			3,278
Loan expense		1,417				1,219			1,183			1,237			1,231
FDIC insurance expense		1,003				1,023			1,251			1,345			1,216
Core deposit intangible amortization		675				675			706			706			816
Prepayment penalties		—				—			—			12,680			—
Other losses		115				192			732			131			245
Other expense		6,638				3,208			3,884			3,249			3,087
Total non-interest expense	$	43,844			$	40,747		$	40,615		$	52,952		$	39,417

Total non-interest expense was $43.8 million in the second quarter of 2026, compared to $40.7 million in the first quarter of 2026. The increase was driven by the previously announced legal charge for $3.1 million in other expense. The accrual will remain in place until the Company has finalized the appeal process. Apart from this item, increases in salary expense and planned marketing spend were offset by lower benefits expense, seasonal declines in occupancy costs and lower professional fees. All other components of non-interest expense remained relatively stable quarter over quarter.

Income Taxes

Horizon recorded a net tax expense of $5.8 million for the second quarter of 2026, resulting in an effective tax rate of 19.0%, which is consistent with the Company's estimated annual effective tax rate.

Balance Sheet Highlights

Total assets increased by $9.9 million, or 0.2%, to $6.6 billion as of June 30, 2026, compared to $6.6 billion as of March 31, 2026. Asset growth during the period was primarily driven by an increase in loans HFI and an increase in investment securities of $15.5 million, partially offset by a decrease in interest earning deposits of $45.1 million, a decrease in FHLB stock of $38.3 million and a decrease in loans held for sale of $4.7 million. Total loans were $5.0 billion at June 30, 2026, an increase of $75.9 million from March 31, 2026 balances, primarily driven by organic commercial loan growth.

Total deposits decreased by $22.1 million, or 0.4%, to $5.4 billion as of June 30, 2026 compared to March 31, 2026. The decrease was driven by a $59.5 million decrease in time deposits and a $39.1 million decrease in non-interest-bearing demand deposits. The decrease was partially offset by an increase of $52.6 million in interest-bearing deposits and a $23.9 million increase in savings and money market balances, reflecting continued success in core deposit gathering efforts.

Overall, balance sheet growth during the quarter reflected a combination of steady asset growth, proactive liquidity management, and ongoing efforts to optimize the deposit base. Management continues to focus on maintaining a strong funding position while supporting measured, relationship-driven loan growth aligned with long-term strategic objectives.

Capital

The following table presents the Consolidated Regulatory Capital Ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2026:

For the Quarter Ended		June 30,			March 31,			December 31,			September 30,
		2026*			2026			2025			2025
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		15.01	%		14.76	%		14.36	%		15.00	%
Tier 1 capital (to risk-weighted assets)		12.17			11.90			11.51			11.27
Common equity tier 1 capital (to risk-weighted assets)		11.09			10.81			10.42			10.17
Tier 1 capital (to average assets)		10.17			9.84			9.55			8.22
*Preliminary estimate - may be subject to change

As of June 30, 2026, the ratio of total stockholders’ equity to total assets is 11.05%. Book value per common share was $14.21, increasing $0.52 during the second quarter of 2026, as growth in retained earnings was partially offset by modestly higher levels of other comprehensive losses.

Tangible common equity¹ totaled $565.1 million at June 30, 2026, and the ratio of tangible common equity to tangible assets1 was 8.81% at June 30, 2026, up from 8.39% at March 31, 2026. Tangible book value, which excludes intangible assets from total equity, per common share was $11.06, increasing $0.54 during the second quarter of 2026.

___________________
¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Credit Quality

As of June 30, 2026, total non-accrual loans decreased by $2.5 million from March 31, 2026, and represent 0.65% of total loans held for investment. Total non-performing assets decreased $0.3 million, to $43.7 million, compared with $44.0 million at March 31, 2026. Non-performing assets are 0.66% of total assets at quarter end, down slightly from 0.67% at March 31, 2026.

For the quarter ended June 30, 2026, net charge-offs were $0.6 million, or 0.05% annualized of average loans, consistent with $0.6 million as of March 31, 2026. Charge‑off levels during the quarter remained low and consistent with management’s expectations, reflecting a continued focus on disciplined underwriting and proactive portfolio monitoring. Overall, credit metrics remain stable, and management continues to closely monitor portfolio performance in the current economic environment.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

Participants may access the live conference call on July 23, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 1-833-974-2379 from the United States and Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through August 23, 2026. The replay may be accessed by dialing 1-855-669-9658 from the United States and Canada, or 1–412–317-0088 from other international locations, and entering the access code 6151989.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.6 billion-asset 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.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

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: changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, changes within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, inflation levels, 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; 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, and the effects of foreign and military policies of the U.S. government; 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.

	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	June 30,				March 31,			December 31,			September 30,				June 30,
		2026				2026			2025			2025				2025
Interest Income
Loans receivable	$	77,740			$	75,104		$	77,238		$	79,561			$	78,618
Investment securities - taxable		7,248				7,494			7,688			6,631				5,941
Investment securities - tax-exempt		2,583				2,544			2,498			4,581				6,088
Other		937				1,509			1,864			2,063				830
Total interest income		88,508				86,651			89,288			92,836				91,477
Interest Expense
Deposits		20,479				19,944			21,228			25,726				26,053
Borrowed funds		1,655				1,654			1,749			5,924				8,171
Subordinated notes		1,904				1,830			1,811			1,731				829
Junior subordinated debentures issued to capital trusts		980				983			1,024			1,069				1,070
Total interest expense		25,018				24,411			25,812			34,450				36,123
Net Interest Income		63,490				62,240			63,476			58,386				55,354
Provision for credit losses		916				391			1,630			(3,572	)			2,462
Net Interest Income after Provision for Credit Losses		62,574				61,849			61,846			61,958				52,892
Non-interest Income
Service charges on deposit accounts		3,376				3,524			3,341			3,474				3,208
Wire transfer fees		67				63			66			71				69
Interchange fees		3,595				3,373			3,445			3,510				3,403
Fiduciary activities		1,501				1,556			1,560			1,363				1,251
Gain (loss) on sale of investment securities		—				—			1			(299,132	)			—
Gain on sale of mortgage loans		1,576				1,090			1,296			1,208				1,219
Mortgage servicing income net of impairment		350				337			352			351				375
Increase in cash value of bank owned life insurance		345				333			360			379				346
Other income (loss)		1,204				967			1,042			(6,558	)			1,049
Total non-interest income (loss)		12,014				11,243			11,463			(295,334	)			10,920
Non-interest Expense
Salaries and employee benefits		24,194				23,187			21,895			22,698				22,731
Net occupancy expenses		3,698				4,197			3,718			3,321				3,127
Data processing		3,631				3,353			3,128			2,933				2,951
Professional fees		(64	)			929			1,083			808				735
Outside services and consultants		2,537				2,764			3,035			3,844				3,278
Loan expense		1,417				1,219			1,183			1,237				1,231
FDIC insurance expense		1,003				1,023			1,251			1,345				1,216
Core deposit intangible amortization		675				675			706			706				816
Prepayment penalties		—				—			—			12,680				—
Other losses		115				192			732			131				245
Other expense		6,638				3,208			3,884			3,249				3,087
Total non-interest expense		43,844				40,747			40,615			52,952				39,417
Income (Loss) Before Income Taxes		30,744				32,345			32,694			(286,328	)			24,395
Income tax expense (benefit)		5,836				6,177			5,773			(64,338	)			3,752
Net Income (Loss)	$	24,908			$	26,168		$	26,921		$	(221,990	)		$	20,643
Basic Earnings (Loss) Per Share	$	0.49			$	0.51		$	0.53		$	(4.69	)		$	0.47
Diluted Earnings (Loss) Per Share		0.49				0.51			0.53			(4.69	)			0.47

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
Assets
Interest earning assets
Federal funds sold	$	—			$	—			$	—			$	—			$	2,024
Interest earning deposits		145,571				190,717				72,646				381,860				34,174
Federal Home Loan Bank stock		7,418				45,713				45,713				45,713				45,412
Investment securities, held for trading		3,885				3,983				3,883				598				—
Investment securities, available for sale		897,764				882,168				875,414				883,242				231,999
Investment securities, held to maturity		—				—				—				—				1,819,087
Loans held for sale		5,147				9,821				9,778				1,921				2,994
Gross loans held for investment (HFI)		4,959,120				4,878,549				4,876,542				4,823,669				4,985,582
Total Interest earning assets		6,018,905				6,010,951				5,883,976				6,137,003				7,121,272
Non-interest earning assets
Allowance for credit losses		(51,921	)			(51,297	)			(51,299	)			(50,178	)			(54,399	)
Cash		72,378				68,354				66,813				76,395				101,719
Cash value of life insurance		37,410				37,065				36,732				37,762				37,755
Other assets		215,032				217,649				215,460				226,247				148,773
Goodwill		155,211				155,211				155,211				155,211				155,211
Other intangible assets		5,829				6,505				7,180				7,886				8,592
Premises and equipment, net		90,939				90,763				92,805				93,413				93,398
Interest receivable		30,377				29,015				29,733				28,758				39,730
Total non-interest earning assets		555,255				553,265				552,635				575,494				530,779
Total assets	$	6,574,160			$	6,564,216			$	6,436,611			$	6,712,497			$	7,652,051
Liabilities
Savings and money market deposits	$	3,195,553			$	3,119,034			$	3,094,231			$	3,198,332			$	3,385,413
Time deposits		1,104,316				1,163,807				1,102,478				1,199,681				1,193,180
Borrowings		153,707				159,825				160,118				160,206				880,336
Repurchase agreements		69,278				66,004				88,468				86,966				95,089
Subordinated notes		98,318				98,262				98,215				154,011				55,807
Junior subordinated debentures issued to capital trusts		57,789				57,740				57,688				57,636				57,583
Total interest earning liabilities		4,678,961				4,664,672				4,601,198				4,856,832				5,667,408
Non-interest bearing deposits		1,100,355				1,139,466				1,078,708				1,122,888				1,121,163
Interest payable		10,862				8,537				12,892				12,395				14,007
Other liabilities		57,793				52,514				55,562				59,611				58,621
Total liabilities		5,847,971				5,865,189				5,748,360				6,051,726				6,861,199
Stockholders’ Equity
Preferred stock		—				—				—				—				—
Common stock		—				—				—				—				—
Additional paid-in capital		460,610				459,799				459,243				458,734				360,758
Retained earnings		289,594				272,941				255,004				236,312				466,497
Accumulated other comprehensive (loss)		(24,015	)			(33,713	)			(25,996	)			(34,275	)			(36,403	)
Total stockholders’ equity		726,189				699,027				688,251				660,771				790,852
Total liabilities and stockholders’ equity	$	6,574,160			$	6,564,216			$	6,436,611			$	6,712,497			$	7,652,051

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,			% Change
		2026			2026			2025			2025			2025		Q2'26 vs Q1'26			Q2'26 vs Q2'25
Loans:
Commercial real estate	$	2,445,173		$	2,443,582		$	2,421,863		$	2,366,956		$	2,321,951		—	%		5	%
Commercial & Industrial		1,085,008			1,023,068			1,010,545			989,609			976,740		6	%		11	%
Total commercial		3,530,181			3,466,650			3,432,408			3,356,565			3,298,691		2	%		7	%
Residential Real estate		755,707			750,108			772,427			783,850			786,026		1	%		(4)%
Consumer		673,232			661,791			671,707			683,254			900,865		2	%		(25)%
Total loans held for investment		4,959,120			4,878,549			4,876,542			4,823,669			4,985,582		2	%		(1)%
Loans held for sale		5,147			9,821			9,778			1,921			2,994		(48)%			72	%
Total loans	$	4,964,267		$	4,888,370		$	4,886,320		$	4,825,590		$	4,988,576		2	%		—	%
Deposits:
Interest bearing deposits	$	1,664,367		$	1,611,795		$	1,639,857		$	1,715,471		$	1,713,058		3	%		(3)%
Savings and money market deposits		1,531,186			1,507,239			1,454,374			1,482,861			1,672,355		2	%		(8)%
Time deposits		1,104,316			1,163,807			1,102,478			1,199,681			1,193,180		(5)%			(7)%
Total Interest bearing deposits		4,299,869			4,282,841			4,196,709			4,398,013			4,578,593		—	%		(6)%
Non-interest bearing deposits
Non-interest bearing deposits		1,100,355			1,139,466			1,078,708			1,122,888			1,121,164		(3)%			(2)%
Total deposits	$	5,400,224		$	5,422,307		$	5,275,417		$	5,520,901		$	5,699,757		—	%		(5)%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	June 30, 2026							March 31, 2026							June 30, 2025
	Average Balance			Interest(4)(6)		Average Rate(4)		Average Balance			Interest(4)(6)		Average Rate(4)		Average Balance			Interest(4)(6)		Average Rate(4)
Assets
Interest earning assets
Interest earning deposits (incl. Fed Funds Sold)	$	101,650		$	936	3.69	%	$	165,084		$	1,509	3.71	%	$	72,993		$	830	4.56	%
Federal Home Loan Bank stock		15,834			259	6.56	%		45,713			551	4.89	%		45,412			1,075	9.49	%
Investment securities - taxable (1)		584,471			6,990	4.80	%		581,146			6,944	4.85	%		959,238			4,867	2.03	%
Investment securities - non-taxable (1)		314,064			3,270	4.18	%		319,276			3,220	4.09	%		1,100,731			7,706	2.81	%
Total investment securities		898,535			10,260	4.58	%		900,422			10,164	4.58	%		2,059,969			12,573	2.45	%
Loans receivable (2) (3)		4,916,799			78,140	6.37	%		4,873,753			75,485	6.28	%		4,947,093			79,000	6.41	%
Total interest earning assets		5,932,818			89,595	6.06	%		5,984,972			87,709	5.94	%		7,125,467			93,478	5.26	%
Non-interest earning assets
Cash and due from banks		71,692							68,007							86,316
Allowance for credit losses		(51,106	)						(51,217	)						(52,560	)
Other assets		535,339							533,989							472,175
Total average assets	$	6,488,743						$	6,535,751						$	7,631,398
Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,627,013		$	5,011	1.24	%	$	1,638,208		$	4,586	1.14	%	$	1,727,713		$	6,803	1.58	%
Saving and money market deposits		1,484,771			5,981	1.62	%		1,475,444			5,619	1.54	%		1,651,866			8,200	1.99	%
Time deposits		1,116,139			9,488	3.41	%		1,153,484			9,739	3.42	%		1,233,582			11,050	3.59	%
Total Deposits		4,227,923			20,480	1.94	%		4,267,136			19,944	1.90	%		4,613,161			26,053	2.27	%
Borrowings		150,118			1,435	3.83	%		150,229			1,421	3.84	%		847,862			7,777	3.68	%
Repurchase agreements		67,494			219	1.30	%		77,376			233	1.22	%		88,058			394	1.79	%
Subordinated notes		98,279			1,904	7.77	%		98,231			1,830	7.56	%		55,785			829	5.96	%
Junior subordinated debentures issued to capital trusts		57,758			980	6.81	%		57,706			983	6.91	%		57,550			1,070	7.46	%
Total interest bearing liabilities		4,601,572			25,018	2.18	%		4,650,678			24,411	2.13	%		5,662,416			36,123	2.56	%
Non-interest bearing liabilities
Demand deposits		1,117,113							1,117,930							1,114,982
Accrued interest payable and other liabilities		55,032							59,227							64,465
Stockholders' equity		715,026							707,916							789,535
Total average liabilities and stockholders' equity	$	6,488,743						$	6,535,751						$	7,631,398
Net FTE interest income (non-GAAP) (5)				$	64,577						$	63,298						$	57,355
Less FTE adjustments (4)					1,087							1,058							2,001
Net Interest Income				$	63,490						$	62,240						$	55,354
Net FTE interest margin (Non-GAAP) (4)(5)						4.37	%						4.29	%						3.23	%
(1)Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
(2)Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
(3)Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
(4)Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(5)Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
(6)Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				% Change
		2026				2026				2025				2025				2025			Q2'26 vs Q1'26			Q2'26 vs Q2'25
Non-accrual loans
Commercial	$	17,843			$	15,761			$	14,549			$	12,303			$	7,547			13	%		136	%
Residential Real estate		8,454				10,607				10,087				9,256				9,525			(20)%			(11)%
Consumer		6,004				8,416				7,821				7,799				7,222			(29)%			(17)%
Total non-accrual loans		32,301				34,784				32,457				29,358				24,294			(7)%			33	%
90 days and greater delinquent - accruing interest		2,632				2,211				2,489				1,608				2,113			19	%		25	%
Total non-performing loans	$	34,933			$	36,995			$	34,946			$	30,966			$	26,407			(6)%			32	%
Other real estate owned
Commercial	$	463			$	594			$	539			$	272			$	176			(22)%			163	%
Residential Real estate		570				631				672				769				463			(10)%			23	%
Consumer		3,633				1,875				480				480				480			94	%		657	%
Total other real estate owned		4,666				3,100				1,691				1,521				1,119			51	%		317	%
Other non-performing assets(1)	$	4,094			$	3,935			$	3,991			$	3,228			$	2,937			4	%		39	%
Total non-performing assets	$	43,693			$	44,030			$	40,628			$	35,715			$	30,463			(1)%			43	%
Loan data:
Accruing 30 to 89 days past due loans	$	21,296			$	19,379			$	24,580			$	24,784			$	31,401			10	%		(32)%
Substandard loans		64,564				63,419				59,365				63,236				64,100			2	%		1	%
Net charge-offs (recoveries)
Commercial	$	295			$	339			$	436			$	294			$	84			(13)%			251	%
Residential Real estate		46				1				(25	)			19				52			4500	%		(12)%
Consumer		264				285				559				518				118			(7)%			124	%
Total net charge-offs	$	605			$	625			$	970			$	831			$	254			(3)%			138	%
Allowance for credit losses
Commercial	$	36,122			$	34,997			$	35,473			$	34,390			$	34,413			3	%		5	%
Residential Real estate		2,958				3,183				3,183				3,082				3,229			(7)%			(8)%
Consumer		12,841				13,117				12,643				12,706				16,757			(2)%			(23)%
Total allowance for credit losses	$	51,921			$	51,297			$	51,299			$	50,178			$	54,399			1	%		(5)%
Credit quality ratios
Non-accrual loans to HFI loans		0.65	%			0.71	%			0.67	%			0.61	%			0.49	%
Non-performing assets to total assets		0.66	%			0.67	%			0.63	%			0.53	%			0.40	%
Annualized net charge-offs of average total loans		0.05	%			0.05	%			0.08	%			0.07	%			0.02	%
Allowance for credit losses to HFI loans		1.05	%			1.05	%			1.05	%			1.04	%			1.09	%
(1)Other non-performing assets consist of a single available for sale debt security placed on non-accrual status.

		Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
			2026				2026				2025				2025				2025
Interest income (GAAP)	(A)	$	88,508			$	86,651			$	89,288			$	92,836			$	91,477
Taxable-equivalent adjustment:
Investment securities - tax exempt (1)			686				676				665				1,218				1,619
Loan receivable (2)			402				381				390				379				382
Interest income (non-GAAP)	(B)		89,596				87,708				90,343				94,433				93,478
Interest expense (GAAP)	(C)		25,018				24,411				25,812				34,450				36,123
Net interest income (GAAP)	(D) =(A) - (C)	$	63,490			$	62,240			$	63,476			$	58,386			$	55,354
Net FTE interest income (non-GAAP)	(E) = (B) - (C)	$	64,578			$	63,297			$	64,531			$	59,983			$	57,355
Average interest earning assets	(F)		5,932,818				5,984,972				5,967,328				6,766,742				7,125,467
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		4.37	%			4.29	%			4.29	%			3.52	%			3.23	%
(1)The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
(2)The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

		Non–GAAP Reconciliation of Return on Average Tangible Common Equity
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
			2026				2026				2025				2025				2025
Net income (loss) (GAAP)	(A)	$	24,908			$	26,168			$	26,921			$	(221,990	)		$	20,644
Average stockholders' equity	(B)	$	715,026			$	707,916			$	679,821			$	731,657			$	789,535
Average intangible assets	(C)		161,471				162,148				162,838				163,552				164,320
Average tangible equity (Non-GAAP)	(D) = (B) - (C)	$	553,555			$	545,768			$	516,983			$	568,105			$	625,215
Return on average tangible common equity ("ROACE") (non-GAAP)	(E) = (A*) / (D)		18.05	%			19.02	%			20.66	%		(155.03)%					13.24	%
*Annualized

		Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
			2026				2026				2025				2025				2025
Total stockholders' equity (GAAP)	(A)	$	726,189			$	699,027			$	688,251			$	660,771			$	790,852
Intangible assets (end of period)	(B)		161,041				161,716				162,391				163,097				163,803
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	565,148			$	537,311			$	525,860			$	497,674			$	627,049
Total assets (GAAP)	(D)	$	6,574,160			$	6,564,216			$	6,436,612			$	6,712,497			$	7,652,051
Intangible assets (end of period)	(B)		161,041				161,716				162,391				163,097				163,803
Total tangible assets (non-GAAP)	(E) = (D) - (B)	$	6,413,119			$	6,402,500			$	6,274,221			$	6,549,400			$	7,488,248
Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.81	%			8.39	%			8.38	%			7.60	%			8.37	%

		Non–GAAP Reconciliation of Tangible Book Value Per Share
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
			2026			2026			2025			2025			2025
Total stockholders' equity (GAAP)	(A)	$	726,189		$	699,027		$	688,251		$	660,771		$	790,852
Intangible assets (end of period)	(B)		161,041			161,716			162,391			163,097			163,803
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	565,148		$	537,311		$	525,860		$	497,674		$	627,049
Common shares outstanding	(D)		51,093,048			51,056,888			50,978,030			50,970,530			43,801,507
Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	11.06		$	10.52		$	10.32		$	9.76		$	14.32

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	July 22, 2026

FAQ

How did Horizon Bancorp (HBNC) perform financially in Q2 2026?

Horizon Bancorp reported Q2 2026 net income of $24.9 million, or $0.49 per diluted share. According to Horizon Bancorp, this compares with $26.2 million in Q1 2026 and $20.6 million a year earlier, and reflects strong margin expansion and stable credit quality.

What were Horizon Bancorp’s key profitability metrics in the second quarter of 2026?

Horizon Bancorp generated a Q2 2026 return on average assets of 1.54% and return on average tangible common equity of 18.05%. According to Horizon Bancorp, these results were achieved despite a $3.1 million legal charge and benefited from a 4.37% net FTE interest margin.

How did Horizon Bancorp’s net interest margin and net interest income change in Q2 2026?

Horizon Bancorp’s net FTE interest margin rose to 4.37% in Q2 2026, from 4.29% in Q1 2026 and 3.23% in Q2 2025. According to Horizon Bancorp, net interest income reached $63.5 million, a 14.7% year-over-year increase, supported by disciplined pricing and loan growth.

What was the impact of the $3.1 million legal charge on Horizon Bancorp (HBNC) in Q2 2026?

Horizon Bancorp recorded a pre-tax legal charge of $3.1 million in Q2 2026, reducing earnings by about $0.05 per diluted share. According to Horizon Bancorp, this charge drove most of the quarter-over-quarter increase in non-interest expense and will remain accrued pending the appeal process.

How did loans and deposits trend at Horizon Bancorp during the second quarter of 2026?

Total loans reached $5.0 billion, rising $75.9 million quarter over quarter, with strong commercial growth. According to Horizon Bancorp, total deposits declined $22.1 million to $5.4 billion, as lower time and non-interest-bearing deposits were partly offset by higher interest-bearing and savings balances.

What is Horizon Bancorp’s capital position and tangible book value after Q2 2026 results?

Horizon Bancorp reported an estimated total risk-based capital ratio of 15.01% and Tier 1 leverage ratio of 10.17% at June 30, 2026. According to Horizon Bancorp, tangible common equity was $565.1 million, with a tangible common equity ratio of 8.81% and tangible book value per share of $11.06.

How strong is Horizon Bancorp’s asset quality based on Q2 2026 figures?

Horizon Bancorp reported annualized net charge-offs of 0.05% of average loans and non-performing assets at 0.66% of total assets in Q2 2026. According to Horizon Bancorp, the allowance for credit losses was 1.05% of loans held for investment, consistent with the prior quarter.