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Jury awards Horizon Bancorp (NASDAQ: HBNC) damages near $3.0 million

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Horizon Bancorp, Inc. reported that a jury returned a civil verdict against its subsidiary Horizon Bank related to a 2018 repossession and credit reporting issue involving a single indirect auto loan. The jury awarded total damages approaching $3.0 million, including $2.5 million of punitive damages.

Horizon plans to record an additional pre-tax expense of approximately $3.0 million to its reserve for this case in the second quarter and keep it until the appeal process is finalized. The company previously stopped new originations in its indirect auto finance business in 2023 and exited a significant majority of remaining exposure in 2024, and it states that it does not anticipate broader exposure or disruption to its core community bank model.

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Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Total damages awarded approaching $3.0 million Jury verdict related to 2018 indirect auto case
Punitive damages $2.5 million Portion of total jury award
Additional pre-tax reserve approximately $3.0 million To be added in Q2 for this case
Indirect auto business exit timing 2023–2024 New originations discontinued in 2023; most exposure exited in 2024
Upcoming earnings call timing July Company plans to provide Q2 results
punitive damages financial
"The jury awarded total damages approaching $3.0 million, including $2.5 million of punitive damages."
Punitive damages are extra money a court orders a company or individual to pay beyond the actual loss, intended to punish particularly wrongful conduct and discourage others from doing the same. For investors, punitive damages can signal reputational and financial risk—like a surprise fine that reduces profits and cash on hand—so they matter because they can affect future dividends, credit ratings, and share price.
indirect auto finance business financial
"The Company discontinued new originations in the indirect auto finance business in 2023"
forward-looking statements regulatory
"This report may contain forward-looking statements regarding the financial performance, business prospects, growth, and operating strategies of Horizon."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
safe harbor for forward-looking statements regulatory
"Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995."
A legal protection that allows companies to discuss plans, goals or expectations about the future without automatically being sued if those projections turn out wrong, provided they clearly label them as forward-looking and include cautionary language. It matters to investors because it lets management share forecasts and strategies—like a weather forecast for a business—while signaling that outcomes are uncertain, so investors should weigh stated assumptions and listed risks rather than treat projections as guarantees.
emerging growth company regulatory
"Emerging growth company 1 Item 8.01 Other Events Horizon Bancorp, Inc."
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
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Understanding 8-K Material Events →
0000706129false00007061292026-06-242026-06-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 24, 2026

HORIZON BANCORP, INC.
(Exact name of registrant as specified in its charter)
Indiana000-1079235-1562417
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
515 Franklin Street
Michigan City, IN 46360
(Address of principal executive offices, including zip code)

(219) 879-0211
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common stock, no par valueHBNCThe NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


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Item 8.01 Other Events

Horizon Bancorp, Inc. (“Horizon” or the “Company”) today announced that on June 24, 2026, a jury returned a civil verdict against the Company’s subsidiary, Horizon Bank (the “Bank”), in a lawsuit stemming from 2018 related to a unique circumstance involving the repossession and credit reporting of a single vehicle financed through our legacy indirect auto business. The jury awarded total damages approaching $3.0 million, including $2.5 million of punitive damages. The Company strongly disagrees with the outcome and intends to challenge the decision via an appeal process. As a result of this event, the Company intends to add an approximate $3.0 million in pre-tax expense to its existing reserve for this case during the second quarter, which it will maintain until the appeal process is finalized.

The Company discontinued new originations in the indirect auto finance business in 2023 and exited a significant majority of its remaining credit exposure in 2024. The Company does not anticipate any broader exposure related to this matter. The Company does not view this event as a disruption to its core community bank model and looks forward to providing its second quarter results during its upcoming earnings call in July.

Forward Looking Statements

This report may contain forward-looking statements regarding the financial performance, business prospects, growth, and operating strategies of 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 report should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with 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 the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; 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; 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 supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking
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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.




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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:June 30, 2026HORIZON BANCORP, INC.
By:/s/ John R. Stewart, CFA
John R. Stewart, CFA
Executive Vice President & Chief Financial Officer



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Source: View Original Filing on SEC EDGAR

FAQ

How much in damages were awarded against Horizon Bank in the lawsuit?

The jury awarded total damages approaching $3.0 million, including $2.5 million of punitive damages. These amounts relate to a single vehicle financing dispute from Horizon’s former indirect auto finance business originated in 2018.

How will the jury verdict affect Horizon Bancorp’s second quarter results?

Horizon Bancorp intends to add approximately $3.0 million in pre-tax expense to its existing reserve for this case during the second quarter, and will maintain this reserve until the appeal process is finalized.

What is Horizon Bancorp’s response to the jury verdict in the Horizon Bank case?

Horizon Bancorp states it strongly disagrees with the jury’s verdict and plans to challenge the decision through an appeal process. The company will maintain the additional reserve related to this case while the appeal is ongoing.

Does Horizon Bancorp expect broader exposure from this indirect auto finance lawsuit?

Horizon Bancorp does not anticipate any broader exposure related to this matter. It discontinued new originations in the indirect auto finance business in 2023 and exited a significant majority of remaining credit exposure in 2024.

Will this litigation affect Horizon Bancorp’s core community banking operations?

Horizon Bancorp states it does not view this event as a disruption to its core community bank model. The company also indicates it looks forward to discussing its second quarter results on its upcoming earnings call in July.

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