Horizon Bancorp, Inc. Reports Strong Third Quarter 2026 Results, Highlighted by Continued Peer Leading Profitability Metrics and Positive Balance Sheet Momentum

Q: What were Horizon Bancorp’s third-quarter 2026 earnings?

Horizon earned $28.7 million, or $0.56 per diluted share, in the third quarter of 2026. That compares with $24.9 million, or $0.49 per diluted share, in the second quarter and a $222.0 million loss, or $4.69 per diluted share, a year earlier.

Q: Why did Horizon Bancorp increase its third-quarter 2026 credit-loss provision?

Horizon attributed the increase primarily to changes in the economic forecast, net loan growth and higher specific reserves on commercial loans. The provision was $1.3 million, compared with $0.9 million in the second quarter and a $3.6 million benefit in the third quarter of 2025.

Nine-month net income reached $79.7 million, compared with a $177.4 million loss in the same period of 2025.

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Rhea-AI Summary

Horizon Bancorp (HBNC) reported third-quarter 2026 net income of $28.7 million, improving from the prior quarter and reversing a year-earlier loss. Diluted earnings were $0.56, versus $0.49 in the second quarter and a $4.69 loss a year earlier. Net interest income rose 11.6% year over year to $65.2 million, while the tax-equivalent interest margin held at 4.37% quarter over quarter.

Non-interest expense fell to $41.5 million from $43.8 million. Deposits grew $81.2 million during the quarter, and loans held for investment grew at a 3.7% annualized rate. Credit-loss provisions increased to $1.3 million from $0.9 million, while annualized net charge-offs rose to 0.10% of average loans from 0.05%. Book value per share fell $0.53 to $13.68, primarily reflecting unrealized losses. The preliminary common equity tier 1 capital ratio, a regulatory capital measure, increased to 11.53% from 11.09%.

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Positive

Major pointThird-quarter net income reached $28.7 million, versus $24.9 million sequentially and a $222.0 million year-earlier loss.
Moderate pointNet interest income rose 11.6% year over year to $65.2 million, versus $63.5 million sequentially.
Moderate pointTax-equivalent interest margin held at 4.37% sequentially, versus 3.52% a year earlier.
Moderate pointReturn on average assets increased to 1.73% from 1.54% in the second quarter.
Moderate pointReturn on average stockholders’ equity increased to 15.61% from 13.97% sequentially.
Moderate pointNon-GAAP return on average tangible common equity rose to 20.03% from 18.05% sequentially.
Moderate pointDeposits grew $81.2 million during the quarter, or 6.0% annualized; non-time deposits grew 9.7% annualized.
Moderate pointLoans held for investment grew 3.7% annualized sequentially, with growth across commercial, mortgage and consumer portfolios.

11 minor points

Minor pointDiluted EPS reached $0.56, versus $0.49 sequentially and a $4.69 year-earlier loss.
Minor pointNine-month net income reached $79.7 million, versus a $177.4 million loss in 2025.
Minor pointNine-month diluted EPS reached $1.55, versus a $3.94 loss in 2025.
Minor pointNon-interest expense fell to $41.5 million from $43.8 million; a $3.1 million second-quarter legal charge did not recur.
Minor pointEfficiency ratio improved to 53.85% from 58.07% in the second quarter.
Minor pointEffective tax rate fell to 16.4% from 19.0%, helped by a $0.9 million discrete benefit.
Minor pointTotal assets increased $17.0 million, or 0.3%, to $6.6 billion during the quarter.
Minor pointPreliminary total regulatory capital ratio increased to 15.48% from 15.02% sequentially.
Minor pointPreliminary tier 1 capital ratio increased to 12.62% of risk-weighted assets from 12.17% sequentially.
Minor pointPreliminary common equity tier 1 ratio increased to 11.53% from 11.09% sequentially.
Minor pointPreliminary tier 1 leverage ratio increased to 10.37% from 10.17% sequentially.

Negative

Moderate pointBook value per share fell $0.53 to $13.68 during the quarter, primarily reflecting unrealized losses.
Minor pointCredit-loss provision rose to $1.3 million, versus $0.9 million sequentially and a $3.6 million year-earlier benefit.
Minor pointNet charge-offs rose to $1.2 million, or 0.10% annualized, versus $0.6 million and 0.05% sequentially.
Minor pointNon-accrual loans increased $1.4 million sequentially, representing 0.67% of loans held for investment.
Minor pointNon-performing assets increased to $44.6 million from $43.7 million sequentially, representing 0.68% of total assets.

4 minor points

Minor pointTangible book value per share fell to $10.54 from $11.06 sequentially.
Minor pointTangible common equity to tangible assets declined to 8.38% from 8.81% sequentially.
Minor pointTotal equity to total assets declined to 10.61% from 11.05% sequentially.
Minor pointNon-interest income slipped to $11.9 million from $12.0 million, despite higher mortgage-loan sale gains.

Key Figures

Net income: $28.7 million Diluted earnings per share: $0.56 Net interest income: $65.2 million; increased 11.6% +5 more

Net income: $28.7 million; Third quarter 2026
Diluted earnings per share: $0.56; Third quarter 2026
Net interest income: $65.2 million; increased 11.6%; Third quarter 2026 versus year-ago period
Net interest margin: 4.37%; Third quarter 2026; compared with 3.52% in the year-ago period
Deposit growth: $81.1 million; 1.5%; Quarter ended September 30, 2026, compared with June 30, 2026
Loans held for investment growth: 3.7%; Linked quarter, annualized
Annualized net charge-offs: 0.10% of average loans; Third quarter 2026
Non-performing assets: 0.68% of total assets; At quarter end, September 30, 2026

Previous Earnings Reports

3 past events · Latest: Jul 22

Same Type 3 events

Jul 22
2Q26 earnings

24h Move

-0.8%

Reported higher year-over-year net interest income and margin, alongside quarterly net income.
Apr 22
1Q26 earnings

24h Move

+1.4%

Reported quarterly net income, higher profitability measures, and deposit growth.
Jan 21
4Q25 earnings

24h Move

+2.1%

Reported quarterly net income and margin expansion, with deposit balances declining.

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

Key Terms

fully taxable equivalent, loans held for investment, net charge-offs, tangible common equity, +1 more

5 terms

fully taxable equivalent financial

"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.

loans held for investment financial

"Total loans held for investment ("HFI") increased"

Loans held for investment are loans a bank or lender plans to keep on its balance sheet and collect payments from, rather than sell to another party. Think of it like owning a rental property instead of flipping it: the owner expects steady income but also carries the risk that borrowers may stop paying, so investors watch this line to judge a lender’s interest income stability, credit quality, and liquidity needs.

net charge-offs financial

"annualized net charge-offs of 0.10% of average loans"

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.

tangible common equity financial

"a return on average tangible common equity of 20.03%"

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.

non-accrual loans financial

"total non-accrual loans increased by $1.4 million"

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.

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10/21/2026 - 04:05 PM EDT

MICHIGAN CITY, Ind., Oct. 21, 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 September 30, 2026.

“Horizon’s high-quality community banking model continues to demonstrate consistency and durability in an ever-changing macroeconomic environment. Our results through the first nine months of 2026 reflect that strength, with annualized return on average assets remaining above 1.60%, return on tangible common equity of 20%, and the net interest margin sustained in the mid-4.30% range. Despite a meaningful shift in the interest rate outlook since the beginning of the year, our expectations for the business have changed very little, underscoring the resiliency and predictability embedded in our business model,” said President and CEO, Thomas Prame. “During the first nine months of 2026, loans held-for-investment and total deposits increased by $129 million and $206 million, respectively, consistent with our outlook for mid-single-digit organic growth. This performance was further enhanced by continued positive momentum across our fee income businesses and a disciplined approach to expense management. We believe this consistent, low-volatility financial performance will continue to compound capital at peer-leading levels, which remains the cornerstone of our long-term value proposition for shareholders”.

Net income for the three months ended September 30, 2026 was $28.7 million, or $0.56 per diluted share, compared to net income of $24.9 million, or $0.49, for the second quarter of 2026 and net loss of $222.0 million, or $(4.69) per diluted share, for the third quarter of 2025.

Net income for the nine months ended September 30, 2026 was $79.7 million, or $1.55 per diluted share, compared to net loss of $177.4 million, or $(3.94), for the nine months ended September 30, 2025.

Third Quarter 2026 Highlights

Durability of top-tier performance metrics continues to reflect the strength of Horizon’s highly productive community banking model. During the third quarter, the Company generated an annualized return on average assets of 1.73% and a return on average tangible common equity of 20.03%.

Net interest income of $65.2 million increased 11.6% compared with $58.4 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis¹, was 4.37%, consistent with the 4.37% reported for the three months ended June 30, 2026, and significantly higher than the 3.52% reported in the comparable year ago period.

Total deposits continue to trend favorably, growing by $81.2 million during the quarter, or 6.0% on an annualized basis. These results were further enhanced by the 9.7% annualized growth in non-time deposits. Total deposit costs, inclusive of non-interest bearing balances, remains low, at 1.57%.

Total loans held for investment ("HFI") increased 3.7% compared to the linked quarter annualized, with balanced growth between commercial, mortgage and consumer portfolios. Loan pipelines continue to be consistent, reflective of Horizon’s attractive markets and relationship based community banking model.

Credit quality remained strong, with annualized net charge offs of 0.10% of average loans during the third quarter. Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.68%.

	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2026			2026			2026			2025			2025
Income statement:
Net interest income	$	65,159		$	63,490		$	62,240		$	63,476		$	58,386
Provision (benefit) for credit losses		1,300			916			391			1,630			(3,572	)
Non-interest income (loss)		11,930			12,014			11,243			11,463			(295,334	)
Non-interest expense		41,512			43,844			40,747			40,615			52,952
Income tax expense (benefit)		5,610			5,836			6,177			5,773			(64,338	)
Net Income (Loss)	$	28,667		$	24,908		$	26,168		$	26,921		$	(221,990	)

Per share data:
Basic earnings (loss) per share	$	0.56		$	0.49		$	0.51		$	0.53		$	(4.69	)
Diluted earnings (loss) per share		0.56			0.49			0.51			0.53			(4.69	)
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		13.68			14.21			13.69			13.50			12.96
Market value - high		20.80			20.29			18.68			18.47			16.88
Market value - low		18.83			16.76			15.57			15.04			15.01
Weighted average shares outstanding - Basic		51,107,844			51,082,827			50,987,426			50,975,693			47,311,642
Weighted average shares outstanding - Diluted		51,358,616			51,304,962			51,243,002			51,277,134			47,311,642
Common shares outstanding (end of period)		51,110,798			51,093,048			51,056,888			50,978,030			50,970,530

Key ratios:
Return on average assets		1.73	%		1.54	%		1.62	%		1.63	%	(12.07)%
Return on average stockholders' equity		15.61			13.97			14.99			15.71			(120.37	)
Total equity to total assets		10.61			11.05			10.65			10.69			9.84
Total loans to deposit ratio		91.39			91.93			90.15			92.62			87.41
Allowance for credit losses to HFI loans		1.04			1.05			1.05			1.05			1.04
Annualized net charge-offs of average total loans ⁽¹⁾		0.10			0.05			0.05			0.08			0.07
Efficiency ratio		53.85			58.07			55.45			54.20			(22.35	)

Key metrics (Non-GAAP) ⁽²⁾
Net FTE interest margin		4.37	%		4.37	%		4.29	%		4.29	%		3.52	%
Return on average tangible common equity		20.03			18.05			19.02			20.66			(155.03	)
Tangible common equity to tangible assets		8.38			8.81			8.39			8.38			7.60
Tangible book value per common share	$	10.54		$	11.06		$	10.52		$	10.32		$	9.76


⁽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 $65.2 million in the third quarter of 2026, compared to $63.5 million in the second quarter of 2026, driven by the continued strength of the Company's net FTE interest margin², which remained consistent at 4.37% when compared to the second quarter of 2026. The resiliency in the margin is reflective of continued disciplined loan and deposit pricing and a favorable cashflow redeployment profile during the quarter.

Provision for Credit Losses

During the third quarter of 2026, the Company recorded a provision for credit losses of $1.3 million. This compares to a recorded provision for credit losses of $0.9 million during the second quarter of 2026, and a benefit for credit losses of $3.6 million during the third quarter of 2025. The increase in the provision for credit losses during the third quarter of 2026 when compared with the second quarter of 2026 was primarily due to changes in the economic forecast, net loan growth and an increase in specific reserves on commercial loans.

For the third quarter of 2026, net charge-offs were $1.2 million, or an annualized 0.10% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2026, and net charge-offs of $0.8 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2025.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.04% at September 30, 2026, down from 1.05% June 30, 2026, and consistent with 1.04% at September 30, 2025.

Non-Interest Income

For the Quarter Ended	September 30,			June 30,		March 31,		December 31,		September 30,
(Dollars in Thousands)		2026		2026		2026		2025			2025
Non-interest Income (Loss)
Service charges on deposit accounts	$	3,518		$	3,376	$	3,524	$	3,341	$	3,474
Wire transfer fees		65			67		63		66		71
Interchange fees		3,537			3,595		3,373		3,445		3,510
Fiduciary activities		1,465			1,501		1,556		1,560		1,363
Gain (loss) on sale of investment securities		(8	)		—		—		1		(299,132	)
Gain on sale of mortgage loans		2,125			1,576		1,090		1,296		1,208
Mortgage servicing income net of impairment		246			350		337		352		351
Increase in cash value of bank owned life insurance		385			345		333		360		379
Other income (loss)		597			1,204		967		1,042		(6,558	)
Total non-interest income (loss)	$	11,930		$	12,014	$	11,243	$	11,463	$	(295,334	)

Total non-interest income was $11.9 million in the third quarter of 2026, compared to non-interest income of $12.0 million in the second quarter of 2026. The third quarter performance reflects an increase in the gain on sale of mortgage loans due to increased volumes and wider margins on loan sales, offset by a decrease in other income and lower net mortgage servicing revenue owed to increased amortization of mortgage servicing rights. All other components of non-interest income remained relatively stable quarter over quarter.

Non-Interest Expense

For the Quarter Ended	September 30,		June 30,			March 31,		December 31,		September 30,
(Dollars in Thousands)	2026			2026		2026		2025		2025
Non-interest Expense
Salaries and employee benefits	$	24,233	$	24,194		$	23,187	$	21,895	$	22,698
Net occupancy expenses		3,701		3,698			4,197		3,718		3,321
Data processing		3,377		3,631			3,353		3,128		2,933
Professional fees		631		(64	)		929		1,083		808
Outside services and consultants		2,619		2,537			2,764		3,035		3,844
Loan expense		1,505		1,417			1,219		1,183		1,237
FDIC insurance expense		680		1,003			1,023		1,251		1,345
Core deposit intangible amortization		620		675			675		706		706
Prepayment penalties		—		—			—		—		12,680
Other losses		308		115			192		732		131
Other expense		3,838		6,638			3,208		3,884		3,249
Total non-interest expense	$	41,512	$	43,844		$	40,747	$	40,615	$	52,952

Total non-interest expense was $41.5 million in the third quarter of 2026, compared to $43.8 million in the second quarter of 2026. The decrease was driven by the previously announced second quarter legal charge for $3.1 million in other expense, which did not recur. Apart from this item, the decrease was driven by a reduction in FDIC insurance expense of $0.3 million and a decline in data processing expenses of $0.3 million. These variances were partially offset by a more normalized run rate in professional fees of $0.7 million. All other components of non-interest expense remained relatively stable quarter over quarter.

Income Taxes

Horizon recorded a net tax expense of $5.6 million for the third quarter of 2026, resulting in an effective tax rate of 16.4%, compared to 19.0% for the second quarter of 2026. Income tax expense was favorably impacted by a discrete benefit of $0.9 million in the third quarter of 2026.

Balance Sheet Highlights

Total assets increased by $17.0 million, or 0.3%, to $6.6 billion as of September 30, 2026 when compared to the prior period. Asset growth during the period was primarily driven by an increase in gross loans HFI of $46.9 million, an increase other assets of $22.1 million and an increase in non-interest earning cash of $11.8 million. The increase was partially offset by a decrease in investment securities of $40.2 million and a decrease in interest earning deposits of $24.6 million.

Total deposits increased by $81.1 million, or 1.5%, to $5.5 billion as of September 30, 2026 compared with June 30, 2026. The increase was driven by a $84.0 million increase in interest bearing deposits, a $12.2 million increase in savings and money market deposits and a $8.8 million increase in non-interest-bearing demand deposits. The increase was partially offset by a decrease of $23.9 million in time deposits. The overall increase in deposits reflects continued success in core deposit gathering efforts.

Overall, balance sheet growth during the quarter reflected a combination of steady loan and deposit growth, and proactive liquidity management. Management continues to focus on maintaining a strong funding position while supporting measured, relationship-driven loan growth aligned with creating long-term shareholder value.

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 September 30, 2026:

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,
	2026*		2026		2026		2025
Consolidated Capital Ratios
Total capital (to risk-weighted assets)	15.48	%	15.02	%	14.76	%	14.36	%
Tier 1 capital (to risk-weighted assets)	12.62		12.17		11.90		11.51
Common equity tier 1 capital (to risk-weighted assets)	11.53		11.09		10.81		10.42
Tier 1 capital (to average assets)	10.37		10.17		9.84		9.55
*Preliminary estimate - may be subject to change

As of September 30, 2026, the ratio of total stockholders’ equity to total assets is 10.61%. Book value per common share was $13.68, decreasing $0.53 during the third quarter of 2026, primarily due to an increase in unrealized losses recorded in accumulated other comprehensive income.

Tangible common equity³ totaled $538.9 million at September 30, 2026, and the ratio of tangible common equity to tangible assets¹ was 8.38% at September 30, 2026, down from 8.81% at June 30, 2026. Tangible book value¹ which excludes intangible assets from total equity, per common share was $10.54 at September 30, 2026.

Credit Quality

As of September 30, 2026, total non-accrual loans increased by $1.4 million from June 30, 2026, and represent 0.67% of total loans held for investment. Total non-performing assets increased by $0.9 million, to $44.6 million, compared with $43.7 million at June 30, 2026. Non-performing assets are 0.68% of total assets at quarter end, up slightly from 0.66% at June 30, 2026.

For the quarter ended September 30, 2026, net charge-offs were $1.2 million, or 0.10% annualized of average loans. 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 third quarter financial results and operating performance.

Participants may access the live conference call on October 22, 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 November 22, 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 1977515.

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.

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	October 21, 2026

	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	September 30,			June 30,			March 31,		December 31,		September 30,
		2026			2026		2026		2025			2025
Interest Income
Loans receivable	$	79,580		$	77,740		$	75,104	$	77,238	$	79,561
Investment securities - taxable		7,426			7,248			7,494		7,688		6,631
Investment securities - tax-exempt		2,570			2,583			2,544		2,498		4,581
Other		1,493			937			1,509		1,864		2,063
Total interest income		91,069			88,508			86,651		89,288		92,836
Interest Expense
Deposits		21,365			20,479			19,944		21,228		25,726
Borrowed funds		1,655			1,655			1,654		1,749		5,924
Subordinated notes		1,898			1,904			1,830		1,811		1,731
Junior subordinated debentures issued to capital trusts		992			980			983		1,024		1,069
Total interest expense		25,910			25,018			24,411		25,812		34,450
Net Interest Income		65,159			63,490			62,240		63,476		58,386
Provision (benefit) for credit losses		1,300			916			391		1,630		(3,572	)
Net Interest Income after Provision for Credit Losses		63,859			62,574			61,849		61,846		61,958
Non-interest Income (loss)
Service charges on deposit accounts		3,518			3,376			3,524		3,341		3,474
Wire transfer fees		65			67			63		66		71
Interchange fees		3,537			3,595			3,373		3,445		3,510
Fiduciary activities		1,465			1,501			1,556		1,560		1,363
Gain (loss) on sale of investment securities		(8	)		—			—		1		(299,132	)
Gain on sale of mortgage loans		2,125			1,576			1,090		1,296		1,208
Mortgage servicing income net of impairment		246			350			337		352		351
Increase in cash value of bank owned life insurance		385			345			333		360		379
Other income (loss)		597			1,204			967		1,042		(6,558	)
Total non-interest income (loss)		11,930			12,014			11,243		11,463		(295,334	)
Non-interest Expense
Salaries and employee benefits		24,233			24,194			23,187		21,895		22,698
Net occupancy expenses		3,701			3,698			4,197		3,718		3,321
Data processing		3,377			3,631			3,353		3,128		2,933
Professional fees		631			(64	)		929		1,083		808
Outside services and consultants		2,619			2,537			2,764		3,035		3,844
Loan expense		1,505			1,417			1,219		1,183		1,237
FDIC insurance expense		680			1,003			1,023		1,251		1,345
Core deposit intangible amortization		620			675			675		706		706
Prepayment penalties		—			—			—		—		12,680
Other losses		308			115			192		732		131
Other expense		3,838			6,638			3,208		3,884		3,249
Total non-interest expense		41,512			43,844			40,747		40,615		52,952
Income (Loss) Before Income Taxes		34,277			30,744			32,345		32,694		(286,328	)
Income tax expense (benefit)		5,610			5,836			6,177		5,773		(64,338	)
Net Income (Loss)	$	28,667		$	24,908		$	26,168	$	26,921	$	(221,990	)
Basic Earnings (Loss) Per Share	$	0.56		$	0.49		$	0.51	$	0.53	$	(4.69	)
Diluted Earnings (Loss) Per Share		0.56			0.49			0.51		0.53		(4.69	)

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	September 30,			June 30,			March 31,			December 31,			September 30,
		2026			2026			2026			2025			2025
Assets
Interest earning assets
Federal funds sold	$	5,113		$	—		$	—		$	—		$	—
Interest earning deposits		120,965			145,571			190,717			72,646			381,860
Federal Home Loan Bank stock		7,418			7,418			45,713			45,713			45,713
Investment securities, held for trading		3,979			3,885			3,983			3,883			598
Investment securities, available for sale		857,429			897,764			882,168			875,414			883,242
Loans held for sale		3,523			5,147			9,821			9,778			1,921
Gross loans held for investment (HFI)		5,005,979			4,959,120			4,878,549			4,876,542			4,823,669
Total Interest earning assets		6,004,406			6,018,905			6,010,951			5,883,976			6,137,003
Non-interest earning assets
Allowance for credit losses		(52,310	)		(51,921	)		(51,297	)		(51,299	)		(50,178	)
Cash		84,222			72,378			68,354			66,813			76,395
Cash value of life insurance		37,799			37,410			37,065			36,732			37,762
Other assets		237,135			215,032			217,649			215,460			226,247
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		5,209			5,829			6,505			7,180			7,886
Premises and equipment, net		92,129			90,939			90,763			92,805			93,413
Interest receivable		27,344			30,377			29,015			29,733			28,758
Total non-interest earning assets		586,739			555,255			553,265			552,635			575,494
Total assets	$	6,591,145		$	6,574,160		$	6,564,216		$	6,436,611		$	6,712,497
Liabilities
Savings and money market deposits	$	3,291,751		$	3,195,553		$	3,119,034		$	3,094,231		$	3,198,332
Time deposits		1,080,445			1,104,316			1,163,807			1,102,478			1,199,681
Borrowings		150,589			153,707			159,825			160,118			160,206
Repurchase agreements		23,986			69,278			66,004			88,468			86,966
Subordinated notes		98,366			98,318			98,262			98,215			154,011
Junior subordinated debentures issued to capital trusts		57,838			57,789			57,740			57,688			57,636
Total interest earning liabilities		4,702,975			4,678,961			4,664,672			4,601,198			4,856,832
Non-interest bearing deposits		1,109,178			1,100,355			1,139,466			1,078,708			1,122,888
Interest payable		6,487			10,862			8,537			12,892			12,395
Other liabilities		73,202			57,793			52,514			55,562			59,611
Total liabilities		5,891,842			5,847,971			5,865,189			5,748,360			6,051,726
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		461,298			460,610			459,799			459,243			458,734
Retained earnings		310,017			289,594			272,941			255,004			236,312
Accumulated other comprehensive (loss)		(72,012	)		(24,015	)		(33,713	)		(25,996	)		(34,275	)
Total stockholders’ equity		699,303			726,189			699,027			688,251			660,771
Total liabilities and stockholders’ equity	$	6,591,145		$	6,574,160		$	6,564,216		$	6,436,611		$	6,712,497

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	September 30,		June 30,		March 31,		December 31,		September 30,		% Change
	2026		2026		2026		2025		2025		Q3'26 vs Q2'26		Q3'26 vs Q3'25
Loans:
Commercial real estate	$	2,435,166	$	2,445,173	$	2,443,582	$	2,421,863	$	2,366,956	—	%	3	%
Commercial & Industrial		1,107,176		1,085,008		1,023,068		1,010,545		989,609	2	%	12	%
Total commercial		3,542,342		3,530,181		3,466,650		3,432,408		3,356,565	—	%	6	%
Residential Real estate		772,223		755,707		750,108		772,427		783,850	2	%	(1)%
Consumer		691,414		673,232		661,791		671,707		683,254	3	%	1	%
Total loans held for investment		5,005,979		4,959,120		4,878,549		4,876,542		4,823,669	1	%	4	%
Loans held for sale		3,523		5,147		9,821		9,778		1,921	(32)%		83	%
Total loans	$	5,009,502	$	4,964,267	$	4,888,370	$	4,886,320	$	4,825,590	1	%	4	%

Deposits:
Interest bearing deposits	$	1,748,378	$	1,664,367	$	1,611,795	$	1,639,857	$	1,715,471	5	%	2	%
Savings and money market deposits		1,543,373		1,531,186		1,507,239		1,454,374		1,482,861	1	%	4	%
Time deposits		1,080,445		1,104,316		1,163,807		1,102,478		1,199,681	(2)%		(10)%
Total Interest bearing deposits		4,372,196		4,299,869		4,282,841		4,196,709		4,398,013	2	%	(1)%
Non-interest bearing deposits
Non-interest bearing deposits		1,109,178		1,100,355		1,139,466		1,078,708		1,122,888	1	%	(1)%
Total deposits	$	5,481,374	$	5,400,224	$	5,422,307	$	5,275,417	$	5,520,901	2	%	(1)%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	September 30, 2026							June 30, 2026							September 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)	$	158,544		$	1,493	3.74	%	$	101,650		$	936	3.69	%	$	185,665		$	2,062	4.41	%
Federal Home Loan Bank stock		7,418			188	10.05	%		15,834			259	6.56	%		45,549			862	7.51	%
Investment securities - taxable (1)		583,994			7,238	4.92	%		584,471			6,990	4.80	%		792,829			5,769	2.89	%
Investment securities - non-taxable (1)		314,702			3,253	4.10	%		314,064			3,270	4.18	%		763,488			5,799	3.01	%
Total investment securities		898,696			10,491	4.63	%		898,535			10,260	4.58	%		1,556,317			11,568	2.95	%
Loans receivable (2) (3)		4,949,830			79,959	6.41	%		4,916,799			78,140	6.37	%		4,979,211			79,941	6.37	%
Total interest earning assets		6,014,488			92,131	6.08	%		5,932,818			89,595	6.06	%		6,766,742			94,433	5.54	%
Non-interest earning assets
Cash and due from banks		71,519							71,692							83,616
Allowance for credit losses		(51,675	)						(51,106	)						(54,072	)
Other assets		539,582							535,339							501,590
Total average assets	$	6,573,914						$	6,488,743						$	7,297,876

Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,679,248		$	5,392	1.27	%	$	1,627,013		$	5,011	1.24	%	$	1,708,446		$	6,687	1.55	%
Saving and money market deposits		1,517,894			6,717	1.76	%		1,484,771			5,981	1.62	%		1,636,428			8,204	1.99	%
Time deposits		1,086,343			9,256	3.38	%		1,116,139			9,488	3.41	%		1,198,279			10,835	3.59	%
Total Deposits		4,283,485			21,365	1.98	%		4,227,923			20,480	1.94	%		4,543,153			25,726	2.25	%
Borrowings		150,083			1,464	3.87	%		150,118			1,435	3.83	%		601,889			5,535	3.65	%
Repurchase agreements		59,040			191	1.28	%		67,494			219	1.30	%		88,721			389	1.74	%
Subordinated notes		98,335			1,898	7.66	%		98,279			1,904	7.77	%		91,032			1,731	7.54	%
Junior subordinated debentures issued to capital trusts		57,807			992	6.81	%		57,758			980	6.81	%		57,602			1,069	7.36	%
Total interest bearing liabilities		4,648,750			25,910	2.21	%		4,601,572			25,018	2.18	%		5,382,397			34,450	2.54	%
Non-interest bearing liabilities
Demand deposits		1,131,714							1,117,113							1,120,719
Accrued interest payable and other liabilities		64,887							55,032							63,104
Stockholders' equity		728,563							715,026							731,657
Total average liabilities and stockholders' equity	$	6,573,914						$	6,488,743						$	7,297,876
Net FTE interest income (non-GAAP) (5)				$	66,221						$	64,577						$	59,983
Less FTE adjustments (4)					1,062							1,087							1,597
Net Interest Income				$	65,159						$	63,490						$	58,386
Net FTE interest margin (Non-GAAP) (4)(5)						4.37	%						4.37	%						3.52	%

⁽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
	September 30,			June 30,			March 31,			December 31,			September 30,			% Change
		2026			2026			2026			2025			2025		Q3'26 vs Q2'26		Q3'26 vs Q3'25
Non-accrual loans
Commercial	$	19,557		$	17,843		$	15,761		$	14,549		$	12,303		10	%	59	%
Residential Real estate		8,737			8,454			10,607			10,087			9,256		3	%	(6)%
Consumer		5,377			6,004			8,416			7,821			7,799		(10)%		(31)%
Total non-accrual loans		33,671			32,301			34,784			32,457			29,358		4	%	15	%
90 days and greater delinquent - accruing interest		2,256			2,632			2,211			2,489			1,608		(14)%		40	%
Total non-performing loans	$	35,927		$	34,933		$	36,995		$	34,946		$	30,966		3	%	16	%

Other real estate owned
Commercial	$	846		$	463		$	594		$	539		$	272		83	%	211	%
Residential Real estate		957			570			631			672			769		68	%	24	%
Consumer		2,647			3,633			1,875			480			480		(27)%		451	%
Total other real estate owned		4,450			4,666			3,100			1,691			1,521		(5)%		193	%


Other non-performing assets ⁽¹⁾	$	4,262		$	4,094		$	3,935		$	3,991		$	3,228		4	%	32	%

Total non-performing assets	$	44,639		$	43,693		$	44,030		$	40,628		$	35,715		2	%	25	%

Loan data:
Accruing 30 to 89 days past due loans	$	21,108		$	21,296		$	19,379		$	24,580		$	24,784		(1)%		(15)%
Substandard loans		60,271			64,564			63,419			59,365			63,236		(7)%		(5)%
Net charge-offs (recoveries)
Commercial	$	733		$	295		$	339		$	436		$	294		148	%	149	%
Residential Real estate		3			46			1			(25	)		19		(93)%		(84)%
Consumer		457			264			285			559			518		73	%	(12)%
Total net charge-offs	$	1,193		$	605		$	625		$	970		$	831		97	%	44	%

Allowance for credit losses
Commercial	$	35,431		$	36,122		$	34,997		$	35,473		$	34,390		(2)%		3	%
Residential Real estate		2,844			2,958			3,183			3,183			3,082		(4)%		(8)%
Consumer		14,035			12,841			13,117			12,643			12,706		9	%	10	%
Total allowance for credit losses	$	52,310		$	51,921		$	51,297		$	51,299		$	50,178		1	%	4	%

Credit quality ratios
Non-accrual loans to HFI loans		0.67	%		0.65	%		0.71	%		0.67	%		0.61	%
Non-performing assets to total assets		0.68	%		0.66	%		0.67	%		0.63	%		0.53	%
Annualized net charge-offs of average total loans		0.10	%		0.05	%		0.05	%		0.08	%		0.07	%
Allowance for credit losses to HFI loans		1.04	%		1.05	%		1.05	%		1.05	%		1.04	%

⁽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
		September 30,			June 30,			March 31,			December 31,			September 30,
			2026			2026			2026			2025			2025
Interest income (GAAP)	(A)	$	91,069		$	88,508		$	86,651		$	89,288		$	92,836
Taxable-equivalent adjustment:
Investment securities - tax exempt (1)			683			686			676			665			1,218
Loan receivable (2)			379			402			381			390			379
Interest income (non-GAAP)	(B)		92,131			89,596			87,708			90,343			94,433
Interest expense (GAAP)	(C)		25,910			25,018			24,411			25,812			34,450
Net interest income (GAAP)	(D) =(A) - (C)	$	65,159		$	63,490		$	62,240		$	63,476		$	58,386
Net FTE interest income (non-GAAP)	(E) = (B) - (C)	$	66,221		$	64,578		$	63,297		$	64,531		$	59,983
Average interest earning assets	(F)		6,014,488			5,932,818			5,984,972			5,967,328			6,766,742
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		4.37	%		4.37	%		4.29	%		4.29	%		3.52	%

⁽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
		September 30,			June 30,			March 31,			December 31,			September 30,
			2026			2026			2026			2025			2025

Net income (loss) (GAAP)	(A)	$	28,667		$	24,908		$	26,168		$	26,921		$	(221,990	)

Average stockholders' equity	(B)	$	728,563		$	715,026		$	707,916		$	679,821		$	731,657
Average intangible assets	(C)		160,809			161,471			162,148			162,838			163,552
Average tangible equity (Non-GAAP)	(D) = (B) - (C)	$	567,754		$	553,555		$	545,768		$	516,983		$	568,105
Return on average tangible common equity ("ROACE") (non-GAAP)	(E) = (A*) / (D)		20.03	%		18.05	%		19.02	%		20.66	%	(155.03)%
*Annualized

		Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
			2026			2026			2026			2025			2025
Total stockholders' equity (GAAP)	(A)	$	699,303		$	726,189		$	699,027		$	688,251		$	660,771
Intangible assets (end of period)	(B)		160,421			161,041			161,716			162,391			163,097
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	538,882		$	565,148		$	537,311		$	525,860		$	497,674

Total assets (GAAP)	(D)	$	6,591,145		$	6,574,160		$	6,564,216		$	6,436,612		$	6,712,497
Intangible assets (end of period)	(B)		160,421			161,041			161,716			162,391			163,097
Total tangible assets (non-GAAP)	(E) = (D) - (B)	$	6,430,724		$	6,413,119		$	6,402,500		$	6,274,221		$	6,549,400

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.38	%		8.81	%		8.39	%		8.38	%		7.60	%

		Non–GAAP Reconciliation of Tangible Book Value Per Share
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
		2026		2026		2026		2025		2025
Total stockholders' equity (GAAP)	(A)	$	699,303	$	726,189	$	699,027	$	688,251	$	660,771
Intangible assets (end of period)	(B)		160,421		161,041		161,716		162,391		163,097
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	538,882	$	565,148	$	537,311	$	525,860	$	497,674
Common shares outstanding	(D)		51,110,798		51,093,048		51,056,888		50,978,030		50,970,530

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	10.54	$	11.06	$	10.52	$	10.32	$	9.76

^¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
^² Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
^³ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Horizon Bancorp’s third-quarter 2026 earnings?

Horizon earned $28.7 million, or $0.56 per diluted share, in the third quarter of 2026. That compares with $24.9 million, or $0.49 per diluted share, in the second quarter and a $222.0 million loss, or $4.69 per diluted share, a year earlier.

Why did Horizon Bancorp increase its third-quarter 2026 credit-loss provision?

Horizon attributed the increase primarily to changes in the economic forecast, net loan growth and higher specific reserves on commercial loans. The provision was $1.3 million, compared with $0.9 million in the second quarter and a $3.6 million benefit in the third quarter of 2025.

Why did Horizon Bancorp’s non-interest income decline in the third quarter of 2026?

Lower other income and lower net mortgage servicing revenue offset increased gains on mortgage-loan sales, leaving non-interest income at $11.9 million, versus $12.0 million sequentially. Mortgage servicing revenue declined because of increased amortization of mortgage servicing rights; mortgage-loan sale gains benefited from higher volumes and wider margins.

Horizon Bancorp, Inc. Reports Strong Third Quarter 2026 Results, Highlighted by Continued Peer Leading Profitability Metrics and Positive Balance Sheet Momentum