Profitability stays high at Horizon Bancorp (NASDAQ: HBNC) in Q1 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Horizon Bancorp, Inc. reports first-quarter 2026 results with net income of $26.2 million, or $0.51 per diluted share. Return on average assets was 1.62% and return on average tangible common equity reached 19.02%, while the net interest margin on a fully taxable equivalent basis held at 4.29%.
Net interest income was $62.2 million, up 19.1% from the year-ago quarter. Total deposits rose $146.9 million to $5.4 billion, including a $60.8 million increase in non-interest-bearing balances, and total loans were about $4.9 billion. Credit quality remained strong, with annualized net charge-offs of 0.05% of average loans and non-performing assets at 0.67% of total assets.
Capital stayed solid, with total stockholders’ equity of $699.0 million, a common equity tier 1 ratio of 10.82%, and tangible common equity to tangible assets of 8.39%. Tangible book value per share increased to $10.52.
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Insights
Horizon delivers strong, high-margin Q1 2026 results with solid credit and capital.
Horizon Bancorp generated Q1 2026 net income of $26.2 million and diluted EPS of $0.51, with return on average assets of 1.62%. Net interest income rose to $62.2 million, up 19.1% from Q1 2025, supported by a resilient net FTE interest margin of 4.29%.
Balance sheet trends were constructive: total deposits increased $146.9 million to $5.4 billion, including $60.8 million growth in non-interest-bearing deposits, while loans held for investment were broadly stable around $4.9 billion. Credit quality stayed favorable, with annualized net charge-offs of 0.05% of average loans and non-performing assets at 0.67% of total assets.
Capital metrics remained robust, with a common equity tier 1 ratio of 10.82%, total risk-based capital of 14.77%, and tangible common equity to tangible assets at 8.39% as of March 31, 2026. Management’s 2026 outlook calls for mid-single-digit growth in loans and deposits, relatively stable FTE margin in the 4.25%-4.35% range, and non-interest expense in the mid-$160 million area.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income: $26.2 million
Diluted EPS: $0.51 per share
Net interest income: $62.2 million
+5 more
8 metrics
Net income
$26.2 million
Three months ended March 31, 2026
Diluted EPS
$0.51 per share
Three months ended March 31, 2026
Net interest income
$62.2 million
Up 19.1% vs Q1 2025
Return on average assets
1.62%
Q1 2026 key profitability metric
Return on average tangible common equity
19.02%
Q1 2026 non-GAAP metric
Net FTE interest margin
4.29%
Q1 2026, unchanged from Q4 2025
Total deposits
$5.42 billion
March 31, 2026; up $146.9 million from December 31, 2025
Common equity tier 1 ratio
10.82%
Preliminary consolidated capital ratio at March 31, 2026
Key Terms
net interest margin, return on average tangible common equity, non-performing assets, allowance for credit losses, +1 more
5 terms
net interest margin financial
"The net interest margin, on a fully taxable equivalent ("FTE") basis, remained strong at 4.29%."
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.
return on average tangible common equity financial
"The Company generated a return on average assets was 1.62%, ... and a return on average tangible common equity of 19.02%."
A profitability ratio that shows how much profit common shareholders earn from the bank’s tangible equity — the shareholder capital left after removing goodwill, intangible assets and preferred stock — averaged over a period. Investors use it like a yield on the company’s real, hard capital to judge how efficiently management turns those tangible resources into earnings and to compare returns across banks or over time.
non-performing assets financial
"Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.67%."
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.
allowance for credit losses financial
"The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.05% at March 31, 2026."
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
tangible common equity to tangible assets financial
"the ratio of tangible common equity to tangible assets was 8.39% at March 31, 2026, up from 8.38% at December 31, 2025."
Tangible common equity to tangible assets is a ratio that compares the amount of common shareholders’ capital after removing intangible items (like goodwill) to a company’s physical and financial assets after the same removal. It tells investors how much real, loss‑absorbing capital supports each dollar of tangible assets—think of it as the safety cushion under a car: the thicker the cushion, the more protection against unexpected losses.
Earnings Snapshot
Net interest income: $62.2 million · Guidance included
Q1 2026
Net interest income
$62.2 million
up 19.1% vs Q1 2025
Net income
$26.2 million
up from $23.9 million in Q1 2025
Diluted EPS
$0.51
vs $0.54 in Q1 2025 (which included a $7.0 million pre-tax gain)
Return on average assets
1.62%
vs 1.25% in Q1 2025
Net FTE interest margin
4.29%
vs 3.04% in Q1 2025
Guidance
For full-year 2026, the company targets mid-single-digit growth in loans and deposits, relatively stable FTE net interest margin of 4.25%-4.35%, non-interest income in the mid-$40 million range, non-interest expense in the mid-$160 million range, and an effective tax rate of 18.0%-20.0%.
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): April 22, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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. ☐
1
Item 2.02 Results of Operations and Financial Condition
On April 22, 2026, Horizon Bancorp, Inc. (the “Company”) issued a press release announcing earnings and other financial results for the three–months ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference.
Item 7.01 Regulation FD Disclosure
Investor Presentation
The Company has prepared presentation materials (the “Investor Presentation”) that management intends to use during its previously announced Earnings Conference Call on Thursday, April 23, 2026 at 7:30 a.m. Central Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Company may use the Investor Presentation, possibly with modifications, in presentations to current and potential investors, analysts, lenders, business partners, acquisition candidates, customers, employees and others with an interest in the Company and its business.
A copy of the Investor Presentation is furnished as Exhibit 99.2 to this report and incorporated here by reference. The Investor Presentation is also available on the Company’s investor website at www.horizonbank.com. Materials on the Company’s investor website are not part of or incorporated by reference into this report.
In accordance with General Instruction B.2 of Form 8–K, the information in this Current Report on Form 8–K, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
| (d) Exhibits | |||||||||||
| EXHIBIT INDEX | |||||||||||
| Exhibit No. | Description | Location | |||||||||
| 99.1 | Press release issued on April 22, 2026 | Attached | |||||||||
| 99.2 | Horizon Bancorp, Inc. Investor Presentation dated April 22, 2026 | Attached | |||||||||
| 104 | Cover Page Interactive Data File (Embedded within the Inline XBRL document) | Within the Inline XBRL document | |||||||||
2
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: | April 22, 2026 | HORIZON BANCORP, INC. | |||||||||
| By: | /s/ John R. Stewart, CFA | ||||||||||
| John R. Stewart, CFA | |||||||||||
| Executive Vice President & Chief Financial Officer | |||||||||||
3
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
+
| Contact: | John R. Stewart, CFA | ||||
| EVP, Chief Financial Officer | |||||
| Phone: | (219) 814–5833 | ||||
| Fax: | (219) 874–9280 | ||||
| Date: | April 22, 2026 | ||||
FOR IMMEDIATE RELEASE
Horizon Bancorp, Inc. Reports First Quarter 2026 Results, Highlighted by Continued Peer Leading Profitability Metrics and Solid Capital Growth
Michigan City, Indiana, April 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 March 31, 2026.
“Horizon’s first quarter results demonstrate the consistency of our profitability profile and the strength of Horizon’s high quality community banking model. Annualized returns on average assets again exceeded 1.60% and the net interest margin continued to be durable at 4.29%. Notably, our strategic focus on core deposit gathering yielded significant results during the quarter, delivering 11% annualized growth, led by 23% annualized growth in non-interest-bearing balances", President and CEO, Thomas Prame stated. "We are encouraged by the stability and predictability we see in our financial performance, driving significant value for our shareholders, despite what has become a volatile macro-economic environment. Our 2026 outlook is unchanged, which should yield solid balance sheet growth coupled with consistent, top-tier profitability metrics. The commercial loan engine continues to produce disciplined, high-quality growth, funded by relationship-based deposits across our attractive footprint. Within the quarter, credit quality remained excellent, expenses were well managed and capital generation continues to be a strength. Most importantly, our long-term shareholder value proposition remained steadfast, aimed at delivering a durable profitability profile, disciplined organic growth and peer leading capital generation".
Net income for the three months ended March 31, 2026 was $26.2 million, or $0.51 per diluted share, compared to net income of $26.9 million, or $0.53, for the fourth quarter of 2025 and net income of $23.9 million, or $0.54 per diluted share, for the first quarter of 2025, which included the $7.0 million pre-tax gain on the sale of the mortgage warehouse business.
1
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
First 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 was 1.62%, consistent with the fourth quarter of 2025, and a return on average tangible common equity of 19.02%.
•Net interest income of $62.2 million was up 19.1% compared with $52.3 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis1, remained strong at 4.29%. These results were consistent with the three months ended December 31, 2025, and significantly higher than the 3.04% reported in the comparable year ago period.
•Excellent growth in total deposits, up $146.9 million, or 11.3% annualized, highlighted by an increase of $60.8 million in non-interest-bearing deposits, or 22.8% annualized. Additionally, total interest-bearing deposit costs declined by another 7 basis points from the prior quarter. The strong quarter in deposits provides ample funding for loan growth in subsequent quarters, but did result in elevated interest-earning cash balances during the first quarter. The elevated cash balance dampened the Q1 2026 net interest margin by about 4 basis points.
•Commercial loans increased $34.2 million, or 4.0% annualized, while total loans were stable from year end 2025. Management maintained disciplined pricing on new mortgage originations, electing to not leverage the balance sheet into lower yielding residential mortgages in Q1. Lending activity exiting the quarter provides confidence in future loan growth expectations and new production spreads.
•Credit quality remained strong, with annualized net charge offs of 0.05% of average loans during the first quarter. Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.67%.
•Expenses for the first quarter were well managed at $40.7 million, reflecting a disciplined approach to the continuous review of staffing models and variable expenses.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
2
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Financial Highlights | |||||||||||||||||||||||||||||
| (Dollars in Thousands Except Share and Per Share Data and Ratios) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||
| Income statement: | |||||||||||||||||||||||||||||
| Net interest income | $ | 62,240 | $ | 63,476 | $ | 58,386 | $ | 55,355 | $ | 52,267 | |||||||||||||||||||
| Provision for credit losses | 391 | 1,630 | (3,572) | 2,462 | 1,376 | ||||||||||||||||||||||||
| Non-interest income (loss) | 11,243 | 11,463 | (295,334) | 10,920 | 16,499 | ||||||||||||||||||||||||
| Non-interest expense | 40,747 | 40,615 | 52,952 | 39,417 | 39,306 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 6,177 | 5,773 | (64,338) | 3,752 | 4,141 | ||||||||||||||||||||||||
| Net Income (Loss) | $ | 26,168 | $ | 26,921 | $ | (221,990) | $ | 20,644 | $ | 23,943 | |||||||||||||||||||
| Per share data: | |||||||||||||||||||||||||||||
| Basic earnings (loss) per share | $ | 0.51 | $ | 0.53 | $ | (4.69) | $ | 0.47 | $ | 0.55 | |||||||||||||||||||
| Diluted earnings (loss) per share | 0.51 | 0.53 | (4.69) | 0.47 | 0.54 | ||||||||||||||||||||||||
| Cash dividends declared per common share | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | ||||||||||||||||||||||||
| Book value per common share | 13.69 | 13.50 | 12.96 | 18.06 | 17.72 | ||||||||||||||||||||||||
| Market value - high | 18.68 | 18.47 | 16.88 | 15.88 | 17.76 | ||||||||||||||||||||||||
| Market value - low | 15.57 | 15.04 | 15.01 | 12.92 | 15.00 | ||||||||||||||||||||||||
| Weighted average shares outstanding - Basic | 50,987,426 | 50,975,693 | 47,311,642 | 43,794,490 | 43,777,109 | ||||||||||||||||||||||||
| Weighted average shares outstanding - Diluted | 51,243,002 | 51,277,134 | 47,311,642 | 44,034,663 | 43,954,164 | ||||||||||||||||||||||||
| Common shares outstanding (end of period) | 51,056,888 | 50,978,030 | 50,970,530 | 43,801,507 | 43,785,932 | ||||||||||||||||||||||||
| Key ratios: | |||||||||||||||||||||||||||||
| Return on average assets | 1.62 | % | 1.63 | % | (12.07) | % | 1.09 | % | 1.25 | % | |||||||||||||||||||
| Return on average stockholders' equity | 14.99 | 15.71 | (120.37) | 10.49 | 12.44 | ||||||||||||||||||||||||
| Total equity to total assets | 10.65 | 10.69 | 9.84 | 10.34 | 10.18 | ||||||||||||||||||||||||
| Total loans to deposit ratio | 90.15 | 92.62 | 87.41 | 87.52 | 85.21 | ||||||||||||||||||||||||
| Allowance for credit losses to HFI loans | 1.05 | 1.05 | 1.04 | 1.09 | 1.07 | ||||||||||||||||||||||||
Annualized net charge-offs of average total loans (1) | 0.05 | 0.08 | 0.07 | 0.02 | 0.07 | ||||||||||||||||||||||||
| Efficiency ratio | 55.45 | 54.20 | (22.35) | 59.47 | 57.16 | ||||||||||||||||||||||||
Key metrics (Non-GAAP) (2) | |||||||||||||||||||||||||||||
| Net FTE interest margin | 4.29 | % | 4.29 | % | 3.52 | % | 3.23 | % | 3.04 | % | |||||||||||||||||||
| Return on average tangible common equity | 19.02 | 20.66 | (155.03) | 13.24 | 15.79 | ||||||||||||||||||||||||
| Tangible common equity to tangible assets | 8.39 | 8.38 | 7.60 | 8.37 | 8.19 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 10.52 | $ | 10.32 | $ | 9.76 | $ | 14.32 | $ | 13.96 | |||||||||||||||||||
(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. | |||||||||||||||||||||||||||||
3
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
Income Statement Highlights
Net Interest Income
Net interest income was $62.2 million in the first quarter of 2026, compared to $63.5 million in the fourth quarter of 2025, driven by the continued strength of the Company's net FTE interest margin1, which remained consistent at 4.29% for the first quarter of 2026 and the fourth quarter of 2025. The margin's resilience is reflective of continued disciplined loan and deposit pricing, a favorable cash reinvestment profile and strong core deposit growth during the quarter.
Provision for Credit Losses
During the first quarter of 2026, the Company recorded a provision for credit losses of $0.4 million. This compares to a recorded provision for credit losses of $1.6 million during the fourth quarter of 2025, and $1.4 million during the first quarter of 2025. The decrease in the provision for credit losses during the first quarter of 2026 when compared with the fourth quarter of 2025 was primarily due to modest net loan growth and slight changes in the baseline economic outlook.
For the first 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 $1.0 million, or an annualized 0.08% of average loans outstanding for the fourth quarter of 2025, and net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding, in the first quarter of 2025.
The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.05% at March 31, 2026, consistent with December 31, 2025, and down from 1.07% at March 31, 2025.
Non-Interest Income
| For the Quarter Ended | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| (Dollars in Thousands) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||
| Non-interest (Loss) Income | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | $ | 3,524 | $ | 3,341 | $ | 3,474 | $ | 3,208 | $ | 3,208 | |||||||||||||||||||
| Wire transfer fees | 63 | 66 | 71 | 69 | 71 | ||||||||||||||||||||||||
| Interchange fees | 3,373 | 3,445 | 3,510 | 3,403 | 3,241 | ||||||||||||||||||||||||
| Fiduciary activities | 1,556 | 1,560 | 1,363 | 1,251 | 1,326 | ||||||||||||||||||||||||
| Gain (loss) on sale of investment securities | — | 1 | (299,132) | — | (407) | ||||||||||||||||||||||||
| Gain on sale of mortgage loans | 1,090 | 1,296 | 1,208 | 1,219 | 1,076 | ||||||||||||||||||||||||
| Mortgage servicing income net of impairment | 337 | 352 | 351 | 375 | 385 | ||||||||||||||||||||||||
| Increase in cash value of bank owned life insurance | 333 | 360 | 379 | 346 | 335 | ||||||||||||||||||||||||
| Other income (loss) | 967 | 1,042 | (6,558) | 1,049 | 7,264 | ||||||||||||||||||||||||
| Total non-interest (loss) income | $ | 11,243 | $ | 11,463 | $ | (295,334) | $ | 10,920 | $ | 16,499 | |||||||||||||||||||
Total non-interest income was $11.2 million in the first quarter of 2026, compared to non-interest income of $11.5 million in the fourth quarter of 2025. The decrease in non-interest income of $0.2 million is primarily attributable to a decrease in gains on the sale of mortgage loans, due to reduced loan origination and sales volumes. The decrease was partially offset by an increase in seasonal service charges on deposit accounts of $0.2 million. All other components of non-interest income remained relatively stable quarter over quarter.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
4
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
Non-Interest Expense
| For the Quarter Ended | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| (Dollars in Thousands) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||
| Non-interest Expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 23,187 | $ | 21,895 | $ | 22,698 | $ | 22,731 | $ | 22,414 | |||||||||||||||||||
| Net occupancy expenses | 4,197 | 3,718 | 3,321 | 3,127 | 3,702 | ||||||||||||||||||||||||
| Data processing | 3,353 | 3,128 | 2,933 | 2,951 | 2,872 | ||||||||||||||||||||||||
| Professional fees | 929 | 1,083 | 808 | 735 | 826 | ||||||||||||||||||||||||
| Outside services and consultants | 2,764 | 3,035 | 3,844 | 3,278 | 3,265 | ||||||||||||||||||||||||
| Loan expense | 1,219 | 1,183 | 1,237 | 1,231 | 689 | ||||||||||||||||||||||||
| FDIC insurance expense | 1,023 | 1,251 | 1,345 | 1,216 | 1,288 | ||||||||||||||||||||||||
| Core deposit intangible amortization | 675 | 706 | 706 | 816 | 816 | ||||||||||||||||||||||||
| Merger related expenses | — | — | — | — | 305 | ||||||||||||||||||||||||
| Prepayment penalties | — | — | 12,680 | — | — | ||||||||||||||||||||||||
| Other losses | 192 | 732 | 131 | 245 | 228 | ||||||||||||||||||||||||
| Other expense | 3,208 | 3,884 | 3,249 | 3,087 | 2,901 | ||||||||||||||||||||||||
| Total non-interest expense | $ | 40,747 | $ | 40,615 | $ | 52,952 | $ | 39,417 | $ | 39,306 | |||||||||||||||||||
Total non-interest expense was $40.7 million in the first quarter of 2026, compared to $40.6 million in the fourth quarter of 2025. The slight increase was primarily driven by higher salaries and employee benefits of $1.3 million, largely reflecting increased benefit-related costs at the beginning of the year, and a $0.5 million seasonal increase in occupancy expense. These increases were partially offset by a $0.7 million reduction in other expenses, primarily due to lower marketing cost and decreased outside services and consulting expense. In addition, other losses declined by $0.5 million, as the prior quarter included the write-off of unamortized issuance costs related to the early redemption of the Company's subordinated notes due 2030. All other components of non-interest expense remained relatively stable quarter over quarter.
Income Taxes
Horizon recorded a net tax expense of $6.2 million for the first quarter of 2026, resulting in an effective tax rate of 19.1%, which is consistent with the Company's estimated annual effective tax rate.
Balance Sheet Highlights
Total assets increased by $127.6 million, or 2.0%, to $6.6 billion as of March 31, 2026, compared to $6.4 billion as of December 31, 2025. Asset growth during the period was primarily driven by an increase in interest earning deposits of $118.1 million, reflecting strong liquidity positioning, and a $6.9 million increase in investment securities. Total loans were $4.9 billion at March 31, 2026, an increase of $2.0 million from December 31, 2025. Net loan growth in the quarter was modest, but expressed solid origination volumes and disciplined pricing in commercial loans that was largely offset by runoff within the consumer and residential loan portfolios.
Total deposits increased by $146.9 million, or 2.8%, to $5.4 billion as of March 31, 2026 compared to December 31, 2025. Deposit growth was driven by a $61.3 million increase in time deposits, a $60.8 million increase in non-interest-bearing demand deposits, and a $52.9 million increase in savings and money market balances, reflecting continued success in core deposit gathering efforts. These increases were partially offset by a $28.1 million decrease in interest-bearing deposits, consistent with management's previously communicated strategy to de-emphasize higher-cost, transactional deposit relationships.
Overall, balance sheet growth during the quarter reflected a combination of steady asset growth, proactive liquidity management, and ongoing efforts to grow and 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.
5
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
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 March 31, 2026:
| For the Quarter Ended | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||
| 2026* | 2025 | 2025 | 2025 | |||||||||||||||||||||||
| Consolidated Capital Ratios | ||||||||||||||||||||||||||
| Total capital (to risk-weighted assets) | 14.77 | % | 14.36 | % | 15.00 | % | 14.44 | % | ||||||||||||||||||
| Tier 1 capital (to risk-weighted assets) | 11.91 | 11.51 | 11.27 | 12.48 | ||||||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 10.82 | 10.42 | 10.17 | 11.48 | ||||||||||||||||||||||
| Tier 1 capital (to average assets) | 9.84 | 9.55 | 8.22 | 9.59 | ||||||||||||||||||||||
| *Preliminary estimate - may be subject to change | ||||||||||||||||||||||||||
As of March 31, 2026, the ratio of total stockholders’ equity to total assets is 10.65%. Book value per common share was $13.69, increasing $0.19 during the first quarter of 2026, as growth in retained earnings was partially offset by modestly higher levels of other comprehensive losses.
Tangible common equity1 totaled $537.3 million at March 31, 2026, and the ratio of tangible common equity to tangible assets1 was 8.39% at March 31, 2026, up from 8.38% at December 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $10.52, increasing $0.20 during the first quarter of 2026.
Credit Quality
As of March 31, 2026, total non-accrual loans increased by $2.3 million from December 31, 2025, and represent 0.71% of total loans held for investment. Total non-performing assets increased $3.4 million, to $44.0 million, compared with $40.6 million at December 31, 2025. Non-performing assets are 0.67% of total assets at quarter end, up slightly from 0.63% at December 31, 2025.
For the quarter ended March 31, 2026, net charge-offs were $0.6 million, or 0.05% annualized of average loans, compared to $1.0 million as of December 31, 2025. Charge‑off levels during the quarter remained low and consistent with management’s expectations, reflecting a continued focus on discipline underwriting and proactive portfolio monitoring. Overall, credit metrics remain stable, and management continues to closely monitor portfolio performance in the current economic environment.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
6
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
Earnings Conference Call
As previously announced, Horizon will host a conference call to review its first quarter financial results and operating performance.
Participants may access the live conference call on April 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 May 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 2139263.
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.
7
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
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.
8
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Condensed Consolidated Statements of Income | |||||||||||||||||||||||||||||
| (Dollars in Thousands Except Per Share Data, Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||||
| Loans receivable | $ | 75,104 | $ | 77,238 | $ | 79,561 | $ | 78,618 | $ | 74,457 | |||||||||||||||||||
| Investment securities - taxable | 7,494 | 7,688 | 6,631 | 5,941 | 6,039 | ||||||||||||||||||||||||
| Investment securities - tax-exempt | 2,544 | 2,498 | 4,581 | 6,088 | 6,192 | ||||||||||||||||||||||||
| Other | 1,509 | 1,864 | 2,063 | 830 | 2,487 | ||||||||||||||||||||||||
| Total interest income | 86,651 | 89,288 | 92,836 | 91,477 | 89,175 | ||||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||||||
| Deposits | 19,944 | 21,228 | 25,726 | 26,052 | 25,601 | ||||||||||||||||||||||||
| Borrowed funds | 1,654 | 1,749 | 5,924 | 8,171 | 9,188 | ||||||||||||||||||||||||
| Subordinated notes | 1,830 | 1,811 | 1,731 | 829 | 829 | ||||||||||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 983 | 1,024 | 1,069 | 1,070 | 1,290 | ||||||||||||||||||||||||
| Total interest expense | 24,411 | 25,812 | 34,450 | 36,122 | 36,908 | ||||||||||||||||||||||||
| Net Interest Income | 62,240 | 63,476 | 58,386 | 55,355 | 52,267 | ||||||||||||||||||||||||
| Provision for credit losses | 391 | 1,630 | (3,572) | 2,462 | 1,376 | ||||||||||||||||||||||||
| Net Interest Income after Provision for Credit Losses | 61,849 | 61,846 | 61,958 | 52,893 | 50,891 | ||||||||||||||||||||||||
| Non-interest Income | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | 3,524 | 3,341 | 3,474 | 3,208 | 3,208 | ||||||||||||||||||||||||
| Wire transfer fees | 63 | 66 | 71 | 69 | 71 | ||||||||||||||||||||||||
| Interchange fees | 3,373 | 3,445 | 3,510 | 3,403 | 3,241 | ||||||||||||||||||||||||
| Fiduciary activities | 1,556 | 1,560 | 1,363 | 1,251 | 1,326 | ||||||||||||||||||||||||
| Gain (loss) on sale of investment securities | — | 1 | (299,132) | — | (407) | ||||||||||||||||||||||||
| Gain on sale of mortgage loans | 1,090 | 1,296 | 1,208 | 1,219 | 1,076 | ||||||||||||||||||||||||
| Mortgage servicing income net of impairment | 337 | 352 | 351 | 375 | 385 | ||||||||||||||||||||||||
| Increase in cash value of bank owned life insurance | 333 | 360 | 379 | 346 | 335 | ||||||||||||||||||||||||
| Other income (loss) | 967 | 1,042 | (6,558) | 1,049 | 7,264 | ||||||||||||||||||||||||
| Total non-interest income (loss) | 11,243 | 11,463 | (295,334) | 10,920 | 16,499 | ||||||||||||||||||||||||
| Non-interest Expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 23,187 | 21,895 | 22,698 | 22,731 | 22,414 | ||||||||||||||||||||||||
| Net occupancy expenses | 4,197 | 3,718 | 3,321 | 3,127 | 3,702 | ||||||||||||||||||||||||
| Data processing | 3,353 | 3,128 | 2,933 | 2,951 | 2,872 | ||||||||||||||||||||||||
| Professional fees | 929 | 1,083 | 808 | 735 | 826 | ||||||||||||||||||||||||
| Outside services and consultants | 2,764 | 3,035 | 3,844 | 3,278 | 3,265 | ||||||||||||||||||||||||
| Loan expense | 1,219 | 1,183 | 1,237 | 1,231 | 689 | ||||||||||||||||||||||||
| FDIC insurance expense | 1,023 | 1,251 | 1,345 | 1,216 | 1,288 | ||||||||||||||||||||||||
| Core deposit intangible amortization | 675 | 706 | 706 | 816 | 816 | ||||||||||||||||||||||||
| Merger related expenses | — | — | — | — | 305 | ||||||||||||||||||||||||
| Prepayment penalties | — | — | 12,680 | — | — | ||||||||||||||||||||||||
| Other losses | 192 | 732 | 131 | 245 | 228 | ||||||||||||||||||||||||
| Other expense | 3,208 | 3,884 | 3,249 | 3,087 | 2,901 | ||||||||||||||||||||||||
| Total non-interest expense | 40,747 | 40,615 | 52,952 | 39,417 | 39,306 | ||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 32,345 | 32,694 | (286,328) | 24,396 | 28,084 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 6,177 | 5,773 | (64,338) | 3,752 | 4,141 | ||||||||||||||||||||||||
| Net Income (Loss) | $ | 26,168 | $ | 26,921 | $ | (221,990) | $ | 20,644 | $ | 23,943 | |||||||||||||||||||
| Basic Earnings (Loss) Per Share | $ | 0.51 | $ | 0.53 | $ | (4.69) | $ | 0.47 | $ | 0.55 | |||||||||||||||||||
| Diluted Earnings (Loss) Per Share | 0.51 | 0.53 | (4.69) | 0.47 | 0.54 | ||||||||||||||||||||||||
9
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended for the Period | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||||||||||
| Federal funds sold | $ | — | $ | — | $ | — | $ | 2,024 | $ | — | |||||||||||||||||||
| Interest earning deposits | 190,717 | 72,646 | 381,860 | 34,174 | 80,023 | ||||||||||||||||||||||||
| Federal Home Loan Bank stock | 45,713 | 45,713 | 45,713 | 45,412 | 45,412 | ||||||||||||||||||||||||
| Investment securities, held for trading | 3,983 | 3,883 | 598 | — | — | ||||||||||||||||||||||||
| Investment securities, available for sale | 882,168 | 875,414 | 883,242 | 231,999 | 231,431 | ||||||||||||||||||||||||
| Investment securities, held to maturity | — | — | — | 1,819,087 | 1,843,851 | ||||||||||||||||||||||||
| Loans held for sale | 9,821 | 9,778 | 1,921 | 2,994 | 3,253 | ||||||||||||||||||||||||
| Gross loans held for investment (HFI) | 4,878,549 | 4,876,542 | 4,823,669 | 4,985,582 | 4,909,815 | ||||||||||||||||||||||||
| Total Interest earning assets | 6,010,951 | 5,883,976 | 6,137,003 | 7,121,272 | 7,113,785 | ||||||||||||||||||||||||
| Non-interest earning assets | |||||||||||||||||||||||||||||
| Allowance for credit losses | (51,297) | (51,299) | (50,178) | (54,399) | (52,654) | ||||||||||||||||||||||||
| Cash | 68,354 | 66,813 | 76,395 | 101,719 | 89,643 | ||||||||||||||||||||||||
| Cash value of life insurance | 37,065 | 36,732 | 37,762 | 37,755 | 37,409 | ||||||||||||||||||||||||
| Other assets | 217,649 | 215,460 | 226,247 | 148,773 | 143,675 | ||||||||||||||||||||||||
| Goodwill | 155,211 | 155,211 | 155,211 | 155,211 | 155,211 | ||||||||||||||||||||||||
| Other intangible assets | 6,505 | 7,180 | 7,886 | 8,592 | 9,407 | ||||||||||||||||||||||||
| Premises and equipment, net | 90,763 | 92,805 | 93,413 | 93,398 | 93,499 | ||||||||||||||||||||||||
| Interest receivable | 29,015 | 29,733 | 28,758 | 39,730 | 38,663 | ||||||||||||||||||||||||
| Total non-interest earning assets | 553,265 | 552,635 | 575,494 | 530,779 | 514,853 | ||||||||||||||||||||||||
| Total assets | $ | 6,564,216 | $ | 6,436,611 | $ | 6,712,497 | $ | 7,652,051 | $ | 7,628,638 | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Savings and money market deposits | $ | 3,119,034 | $ | 3,094,231 | $ | 3,198,332 | $ | 3,385,413 | $ | 3,393,371 | |||||||||||||||||||
| Time deposits | 1,163,807 | 1,102,478 | 1,199,681 | 1,193,180 | 1,245,088 | ||||||||||||||||||||||||
| Borrowings | 159,825 | 160,118 | 160,206 | 880,336 | 812,218 | ||||||||||||||||||||||||
| Repurchase agreements | 66,004 | 88,468 | 86,966 | 95,089 | 87,851 | ||||||||||||||||||||||||
| Subordinated notes | 98,262 | 98,215 | 154,011 | 55,807 | 55,772 | ||||||||||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 57,740 | 57,688 | 57,636 | 57,583 | 57,531 | ||||||||||||||||||||||||
| Total interest earning liabilities | 4,664,672 | 4,601,198 | 4,856,832 | 5,667,408 | 5,651,831 | ||||||||||||||||||||||||
| Non-interest bearing deposits | 1,139,466 | 1,078,708 | 1,122,888 | 1,121,163 | 1,127,324 | ||||||||||||||||||||||||
| Interest payable | 8,537 | 12,892 | 12,395 | 14,007 | 11,441 | ||||||||||||||||||||||||
| Other liabilities | 52,514 | 55,562 | 59,611 | 58,621 | 61,981 | ||||||||||||||||||||||||
| Total liabilities | 5,865,189 | 5,748,360 | 6,051,726 | 6,861,199 | 6,852,577 | ||||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
| Common stock | — | — | — | — | — | ||||||||||||||||||||||||
| Additional paid-in capital | 459,799 | 459,243 | 458,734 | 360,758 | 360,522 | ||||||||||||||||||||||||
| Retained earnings | 272,941 | 255,004 | 236,312 | 466,497 | 452,945 | ||||||||||||||||||||||||
| Accumulated other comprehensive (loss) | (33,713) | (25,996) | (34,275) | (36,403) | (37,406) | ||||||||||||||||||||||||
| Total stockholders’ equity | 699,027 | 688,251 | 660,771 | 790,852 | 776,061 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 6,564,216 | $ | 6,436,611 | $ | 6,712,497 | $ | 7,652,051 | $ | 7,628,638 | |||||||||||||||||||
10
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Loans and Deposits | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | % Change | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | Q1'26 vs Q4'25 | Q1'26 vs Q1'25 | |||||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 2,443,582 | $ | 2,421,863 | $ | 2,366,956 | $ | 2,321,951 | $ | 2,262,910 | 1 | % | 8 | % | |||||||||||||||||||||||||||
| Commercial & Industrial | 1,023,068 | 1,010,545 | 989,609 | 976,740 | 918,541 | 1 | % | 11 | % | ||||||||||||||||||||||||||||||||
| Total commercial | 3,466,650 | 3,432,408 | 3,356,565 | 3,298,691 | 3,181,451 | 1 | % | 9 | % | ||||||||||||||||||||||||||||||||
| Residential Real estate | 750,108 | 772,427 | 783,850 | 786,026 | 801,726 | (3) | % | (6) | % | ||||||||||||||||||||||||||||||||
| Consumer | 661,791 | 671,707 | 683,254 | 900,865 | 926,638 | (1) | % | (29) | % | ||||||||||||||||||||||||||||||||
| Total loans held for investment | 4,878,549 | 4,876,542 | 4,823,669 | 4,985,582 | 4,909,815 | — | % | (1) | % | ||||||||||||||||||||||||||||||||
| Loans held for sale | 9,821 | 9,778 | 1,921 | 2,994 | 3,253 | — | % | 202 | % | ||||||||||||||||||||||||||||||||
| Total loans | $ | 4,888,370 | $ | 4,886,320 | $ | 4,825,590 | $ | 4,988,576 | $ | 4,913,068 | — | % | (1) | % | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||||||||
| Interest bearing deposits | $ | 1,611,795 | $ | 1,639,857 | $ | 1,715,471 | $ | 1,713,058 | $ | 1,713,991 | (2) | % | (6) | % | |||||||||||||||||||||||||||
| Savings and money market deposits | 1,507,239 | 1,454,374 | 1,482,861 | 1,672,355 | 1,679,380 | 4 | % | (10) | % | ||||||||||||||||||||||||||||||||
| Time deposits | 1,163,807 | 1,102,478 | 1,199,681 | 1,193,180 | 1,245,088 | 6 | % | (7) | % | ||||||||||||||||||||||||||||||||
| Total Interest bearing deposits | 4,282,841 | 4,196,709 | 4,398,013 | 4,578,593 | 4,638,459 | 2 | % | (8) | % | ||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | |||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | 1,139,466 | 1,078,708 | 1,122,888 | 1,121,164 | 1,127,324 | 6 | % | 1 | % | ||||||||||||||||||||||||||||||||
| Total deposits | $ | 5,422,307 | $ | 5,275,417 | $ | 5,520,901 | $ | 5,699,757 | $ | 5,765,784 | 3 | % | (6) | % | |||||||||||||||||||||||||||
11
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Average Balance Sheet | |||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 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) | $ | 165,084 | $ | 1,509 | 3.71 | % | $ | 182,017 | $ | 1,866 | 4.07 | % | $ | 223,148 | $ | 2,487 | 4.52 | % | |||||||||||
| Federal Home Loan Bank stock | 45,713 | 551 | 4.89 | % | 45,713 | 616 | 5.35 | % | 51,769 | 1,012 | 7.93 | % | |||||||||||||||||
| Investment securities - taxable (1) | 581,146 | 6,944 | 4.85 | % | 570,786 | 7,071 | 4.91 | % | 974,109 | 5,027 | 2.09 | % | |||||||||||||||||
| Investment securities - non-taxable (1) | 319,276 | 3,220 | 4.09 | % | 312,988 | 3,162 | 4.01 | % | 1,120,249 | 7,838 | 2.84 | % | |||||||||||||||||
| Total investment securities | 900,422 | 10,164 | 4.58 | % | 883,774 | 10,233 | 4.59 | % | 2,094,358 | 12,865 | 2.49 | % | |||||||||||||||||
| Loans receivable (2) (3) | 4,873,753 | 75,485 | 6.28 | % | 4,855,824 | 77,628 | 6.34 | % | 4,865,449 | 74,840 | 6.24 | % | |||||||||||||||||
| Total interest earning assets | 5,984,972 | 87,709 | 5.94 | % | 5,967,328 | 90,343 | 6.01 | % | 7,234,724 | 91,204 | 5.11 | % | |||||||||||||||||
| Non-interest earning assets | |||||||||||||||||||||||||||||
| Cash and due from banks | 68,007 | 74,102 | 88,624 | ||||||||||||||||||||||||||
| Allowance for credit losses | (51,217) | (49,815) | (51,863) | ||||||||||||||||||||||||||
| Other assets | 533,989 | 545,520 | 483,765 | ||||||||||||||||||||||||||
| Total average assets | $ | 6,535,751 | $ | 6,537,135 | $ | 7,755,250 | |||||||||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||||||||||
| Interest bearing demand deposits | $ | 1,638,208 | $ | 4,587 | 1.14 | % | $ | 1,686,435 | $ | 5,572 | 1.31 | % | $ | 1,750,446 | $ | 6,491 | 1.50 | % | |||||||||||
| Saving and money market deposits | 1,475,444 | 5,619 | 1.54 | % | 1,445,144 | 5,587 | 1.53 | % | 1,674,590 | 8,263 | 2.00 | % | |||||||||||||||||
| Time deposits | 1,153,484 | 9,739 | 3.42 | % | 1,134,417 | 10,071 | 3.52 | % | 1,212,386 | 10,847 | 3.63 | % | |||||||||||||||||
| Total Deposits | 4,267,136 | 19,945 | 1.90 | % | 4,265,996 | 21,230 | 1.97 | % | 4,637,422 | 25,601 | 2.24 | % | |||||||||||||||||
| Borrowings | 150,229 | 1,421 | 3.84 | % | 150,304 | 1,452 | 3.83 | % | 971,496 | 8,772 | 3.66 | % | |||||||||||||||||
| Repurchase agreements | 77,376 | 233 | 1.22 | % | 87,160 | 295 | 1.34 | % | 88,469 | 416 | 1.91 | % | |||||||||||||||||
| Subordinated notes | 98,231 | 1,830 | 7.56 | % | 98,185 | 1,812 | 7.32 | % | 55,750 | 829 | 6.03 | % | |||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 57,706 | 983 | 6.91 | % | 57,655 | 1,023 | 7.04 | % | 57,497 | 1,290 | 9.10 | % | |||||||||||||||||
| Total interest bearing liabilities | 4,650,678 | 24,412 | 2.13 | % | 4,659,300 | 25,812 | 2.20 | % | 5,810,634 | 36,908 | 2.58 | % | |||||||||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||||||||||||
| Demand deposits | 1,117,930 | 1,137,639 | 1,085,826 | ||||||||||||||||||||||||||
| Accrued interest payable and other liabilities | 59,227 | 60,375 | 78,521 | ||||||||||||||||||||||||||
| Stockholders' equity | 707,916 | 679,821 | 780,269 | ||||||||||||||||||||||||||
| Total average liabilities and stockholders' equity | $ | 6,535,751 | $ | 6,537,135 | $ | 7,755,250 | |||||||||||||||||||||||
| Net FTE interest income (non-GAAP) (5) | $ | 63,297 | $ | 64,531 | $ | 54,296 | |||||||||||||||||||||||
| Less FTE adjustments (4) | 1,057 | 1,055 | 2,029 | ||||||||||||||||||||||||||
| Net Interest Income | $ | 62,240 | $ | 63,476 | $ | 52,267 | |||||||||||||||||||||||
| Net FTE interest margin (Non-GAAP) (4)(5) | 4.29 | % | 4.29 | % | 3.04 | % | |||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
12
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Credit Quality | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in Thousands Except Ratios, Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | % Change | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | Q1'26 vs Q4'25 | Q1'26 vs Q1'25 | |||||||||||||||||||||||||||||||||||
| Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 15,761 | $ | 14,549 | $ | 12,303 | $ | 7,547 | $ | 8,172 | 8 | % | 93 | % | |||||||||||||||||||||||||||
| Residential Real estate | 10,607 | 10,087 | 9,256 | 9,525 | 12,763 | 5 | % | (17) | % | ||||||||||||||||||||||||||||||||
| Consumer | 8,416 | 7,821 | 7,799 | 7,222 | 7,875 | 8 | % | 7 | % | ||||||||||||||||||||||||||||||||
| Total non-accrual loans | 34,784 | 32,457 | 29,358 | 24,294 | 28,810 | 7 | % | 21 | % | ||||||||||||||||||||||||||||||||
| 90 days and greater delinquent - accruing interest | 2,211 | 2,489 | 1,608 | 2,113 | 1,582 | (11) | % | 40 | % | ||||||||||||||||||||||||||||||||
| Total non-performing loans | $ | 36,995 | $ | 34,946 | $ | 30,966 | $ | 26,407 | $ | 30,392 | 6 | % | 22 | % | |||||||||||||||||||||||||||
| Other real estate owned | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 594 | $ | 539 | $ | 272 | $ | 176 | $ | 360 | 10 | % | 65 | % | |||||||||||||||||||||||||||
| Residential Real estate | 631 | 672 | 769 | 463 | 641 | (6) | % | (1) | % | ||||||||||||||||||||||||||||||||
| Consumer | 1,875 | 480 | 480 | 480 | 34 | 291 | % | 5415 | % | ||||||||||||||||||||||||||||||||
| Total other real estate owned | 3,100 | 1,691 | 1,521 | 1,119 | 1,035 | 83 | % | 200 | % | ||||||||||||||||||||||||||||||||
Other non-performing assets (1) | $ | 3,935 | $ | 3,991 | $ | 3,228 | $ | 2,937 | $ | — | (1) | % | — | % | |||||||||||||||||||||||||||
| Total non-performing assets | $ | 44,030 | $ | 40,628 | $ | 35,715 | $ | 30,463 | $ | 31,427 | 8 | % | 40 | % | |||||||||||||||||||||||||||
| Loan data: | |||||||||||||||||||||||||||||||||||||||||
| Accruing 30 to 89 days past due loans | $ | 19,379 | $ | 24,580 | $ | 24,784 | $ | 31,401 | $ | 19,034 | (21) | % | 2 | % | |||||||||||||||||||||||||||
| Substandard loans | 63,419 | 59,365 | 63,236 | 64,100 | 66,714 | 7 | % | (5) | % | ||||||||||||||||||||||||||||||||
| Net charge-offs (recoveries) | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 339 | $ | 436 | $ | 294 | $ | 84 | $ | (47) | (22) | % | (821) | % | |||||||||||||||||||||||||||
| Residential Real estate | 1 | (25) | 19 | 52 | (47) | (104) | % | (102) | % | ||||||||||||||||||||||||||||||||
| Consumer | 285 | 559 | 518 | 118 | 963 | (49) | % | (70) | % | ||||||||||||||||||||||||||||||||
| Total net charge-offs | $ | 625 | $ | 970 | $ | 831 | $ | 254 | $ | 869 | (36) | % | (28) | % | |||||||||||||||||||||||||||
| Allowance for credit losses | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 34,997 | $ | 35,473 | $ | 34,390 | $ | 34,413 | $ | 32,640 | (1) | % | 7 | % | |||||||||||||||||||||||||||
| Residential Real estate | 3,183 | 3,183 | 3,082 | 3,229 | 3,167 | — | % | — | % | ||||||||||||||||||||||||||||||||
| Consumer | 13,117 | 12,643 | 12,706 | 16,757 | 16,847 | 4 | % | (22) | % | ||||||||||||||||||||||||||||||||
| Total allowance for credit losses | $ | 51,297 | $ | 51,299 | $ | 50,178 | $ | 54,399 | $ | 52,654 | — | % | (3) | % | |||||||||||||||||||||||||||
| Credit quality ratios | |||||||||||||||||||||||||||||||||||||||||
| Non-accrual loans to HFI loans | 0.71 | % | 0.67 | % | 0.61 | % | 0.49 | % | 0.59 | % | |||||||||||||||||||||||||||||||
| Non-performing assets to total assets | 0.67 | % | 0.63 | % | 0.53 | % | 0.40 | % | 0.41 | % | |||||||||||||||||||||||||||||||
| Annualized net charge-offs of average total loans | 0.05 | % | 0.08 | % | 0.07 | % | 0.02 | % | 0.07 | % | |||||||||||||||||||||||||||||||
| Allowance for credit losses to HFI loans | 1.05 | % | 1.05 | % | 1.04 | % | 1.09 | % | 1.07 | % | |||||||||||||||||||||||||||||||
(1) Other non-performing assets consist of a single available for sale debt security placed on non-accrual status. | |||||||||||||||||||||||||||||||||||||||||
13
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin | ||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Interest income (GAAP) | (A) | $ | 86,651 | $ | 89,288 | $ | 92,836 | $ | 91,477 | $ | 89,175 | |||||||||||||||||||||
| Taxable-equivalent adjustment: | ||||||||||||||||||||||||||||||||
| Investment securities - tax exempt (1) | 676 | 665 | 1,218 | 1,619 | 1,646 | |||||||||||||||||||||||||||
| Loan receivable (2) | 381 | 390 | 379 | 382 | 383 | |||||||||||||||||||||||||||
| Interest income (non-GAAP) | (B) | 87,708 | 90,343 | 94,433 | 93,478 | 91,204 | ||||||||||||||||||||||||||
| Interest expense (GAAP) | (C) | 24,411 | 25,812 | 34,450 | 36,122 | 36,908 | ||||||||||||||||||||||||||
| Net interest income (GAAP) | (D) =(A) - (C) | $ | 62,240 | $ | 63,476 | $ | 58,386 | $ | 55,355 | $ | 52,267 | |||||||||||||||||||||
| Net FTE interest income (non-GAAP) | (E) = (B) - (C) | $ | 63,297 | $ | 64,531 | $ | 59,983 | $ | 57,356 | $ | 54,296 | |||||||||||||||||||||
| Average interest earning assets | (F) | 5,984,972 | 5,967,328 | 6,766,742 | 7,125,467 | 7,234,724 | ||||||||||||||||||||||||||
| Net FTE interest margin (non-GAAP) | (G) = (E*) / (F) | 4.29 | % | 4.29 | % | 3.52 | % | 3.23 | % | 3.04 | % | |||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Net income (loss) (GAAP) | (A) | $ | 26,168 | $ | 26,921 | $ | (221,990) | $ | 20,644 | $ | 23,943 | |||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||
| Average stockholders' equity | (B) | $ | 707,916 | $ | 679,821 | $ | 731,657 | $ | 789,535 | $ | 780,269 | |||||||||||||||||||||
| Average intangible assets | (C) | 162,148 | 162,838 | 163,552 | 164,320 | 165,138 | ||||||||||||||||||||||||||
| Average tangible equity (Non-GAAP) | (D) = (B) - (C) | $ | 545,768 | $ | 516,983 | $ | 568,105 | $ | 625,215 | $ | 615,131 | |||||||||||||||||||||
| Return on average tangible common equity ("ROACE") (non-GAAP) | (E) = (A*) / (D) | 19.02 | % | 20.66 | % | (155.03) | % | 13.24 | % | 15.79 | % | |||||||||||||||||||||
| *Annualized | ||||||||||||||||||||||||||||||||
| Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets | ||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Total stockholders' equity (GAAP) | (A) | $ | 699,027 | $ | 688,251 | $ | 660,771 | $ | 790,852 | $ | 776,061 | |||||||||||||||||||||
| Intangible assets (end of period) | (B) | 161,716 | 162,391 | 163,097 | 163,803 | 164,618 | ||||||||||||||||||||||||||
| Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 537,311 | $ | 525,860 | $ | 497,674 | $ | 627,049 | $ | 611,443 | |||||||||||||||||||||
| Total assets (GAAP) | (D) | $ | 6,564,216 | $ | 6,436,612 | $ | 6,712,497 | $ | 7,652,051 | $ | 7,628,636 | |||||||||||||||||||||
| Intangible assets (end of period) | (B) | 161,716 | 162,391 | 163,097 | 163,803 | 164,618 | ||||||||||||||||||||||||||
| Total tangible assets (non-GAAP) | (E) = (D) - (B) | $ | 6,402,500 | $ | 6,274,221 | $ | 6,549,400 | $ | 7,488,248 | $ | 7,464,018 | |||||||||||||||||||||
| Tangible common equity to tangible assets (Non-GAAP) | (G) = (C) / (E) | 8.39 | % | 8.38 | % | 7.60 | % | 8.37 | % | 8.19 | % | |||||||||||||||||||||
14
Horizon Bancorp, Inc. Reports First Quarter 2026 Results
| Non–GAAP Reconciliation of Tangible Book Value Per Share | ||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Total stockholders' equity (GAAP) | (A) | $ | 699,027 | $ | 688,251 | $ | 660,771 | $ | 790,852 | $ | 776,061 | |||||||||||||||||||||
| Intangible assets (end of period) | (B) | 161,716 | 162,391 | 163,097 | 163,803 | 164,618 | ||||||||||||||||||||||||||
| Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 537,311 | $ | 525,860 | $ | 497,674 | $ | 627,049 | $ | 611,443 | |||||||||||||||||||||
| Common shares outstanding | (D) | 51,056,888 | 50,978,030 | 50,970,530 | 43,801,507 | 43,785,932 | ||||||||||||||||||||||||||
| Tangible book value per common share (non-GAAP) | (E) = (C) / (D) | $ | 10.52 | $ | 10.32 | $ | 9.76 | $ | 14.32 | $ | 13.96 | |||||||||||||||||||||
15
Beyond ordinary banking Investor Presentation H o r i z o n B a n c o r p , I n c . ( N A S D A Q : H B N C ) F i r s t Q u a r t e r E n d e d M a r c h 3 1 , 2 0 2 6 A p r i l 2 3 , 2 0 2 6
Important Information 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. 2
Durable Top-Tier Performance Key Performance Metrics • ROA: 1.62%. Continued top tier performance levels from Q4 at 1.63%. • ROTCE*: 19.02%. Consistency in shareholder value creation from Q4 at 20.66%. • NIM*: 4.29%. Durable net interest margin, aligned with Q4 at 4.29%. Capital • Solid growth of 40 bps in CET1 to 10.82%, up from 10.42% in 4Q25. • Total risk-based capital of 14.77% in 1Q26 compared to 14.36% in 4Q25. Balance Sheet Advancement • Strong deposit growth of $147 million, or 11% linked quarter annualized (LQA); Highlighted by $61 million of growth in non-interest bearing deposits. • Good momentum in Commercial loan growth of $34 million, or 4.0% LQA; Disciplined approach to mortgage pricing in 1Q led to a modest decline in residential balances. Asset Quality • Excellent credit performance, with net charge offs of 0.05% annualized. • Stable and continued historically low non-performing asset levels. 3 * Return on tangible common equity (ROTCE) and Net Fully-Taxable Equivalent Interest Margin (NIM) are Non-GAAP measures. Please see appendix for reconciliations of non-GAAP information to its most comparable GAAP measures
Franchise Valued Loan Growth Data as of most-recent quarter (MRQ) end unless stated otherwise. *Total Gross Loans Held for Investment (HFI), excludes Loans Held for Sale (HFS) 4 14% 15% 71% Consumer Residential Commercial Total Loans* $4.9B MRQ end H I G H L I G H T S & D E V E L O P M E N T S • Total Commercial Loans continue to have strong momentum • Commercial Real Estate grew $21.7 million, or 3.6% LQA. • C&I loans increased $12.5 million, or 5.0% LQA. • Modest decline in Residential and Consumer • Reduction of $32 million in residential and consumer. • Primarily a result of sub 6% rates elevating refinancing activity in Q1. Team elected to maintain pricing discipline for balance sheet utilization. Mortgage pricing/spreads recovered in March.
Diversified Commercial Portfolio * Land Development and Spec Home Loans H I G H L I G H T S & D E V E L O P M E N T S • Commercial loan balances grew 4.0% LQA • Quarter end balances up $34 million. • Grand Rapids, Indianapolis and Northwest Indiana regions primarily contributed to the linked quarter growth. • Well balanced geographies, product mix and industry • Favorable new production mix, with 37% C&I. • No segment exceeds 6.4% of total loans. Data represents total loans HFI as of MRQ unless stated otherwise 5 28% 20% 14% 15% 9% 10% 4% Central Indiana West Michigan Southwest Michigan Northern Indiana Northern Michigan East Michigan Other $m illi on s Commercial Loans (period end) $3,182 $3,299 $3,357 $3,432 $3,467 $36 $39 $47 $53 $55 $919 $977 $990 $1,011 $1,023 $686 $705 $709 $699 $718 $1,541 $1,578 $1,611 $1,669 $1,670 Other* C&I CRE (owner occ.) CRE (non-owner occ.) 1Q25 2Q25 3Q25 4Q25 1Q26 Geography $3.5B MRQ end 48% 21% 30% 2% CRE (non-owner occ.) CRE(Owner occ.) C&I Other* MIX $3.5B MRQ end
Prime Consumer Portfolio H I G H L I G H T S & D E V E L O P M E N T S • High quality Mortgage and Consumer (primarily HELOC) portfolios, with well qualified borrowers and significant equity in homes. • Management elected to not leverage balance sheet with lower yielding mortgages in Q4 and Q1, maintaining spreads. • Momentum heading into Q2 provides stable/modest growth outlook, driven by recent strategic hiring and elevated pipelines. 6Data represents total loans HFI as of MRQ unless stated otherwise HOME EQUITY MORTGAGE CREDIT SCORE 763 759 DEBT-TO-INCOME 32% 35% LOAN-TO-VALUE 65% 68% 53%41% 6% Mortgage Home Equity Other Consumer Loans Mix $1.4B MRQ end $m illi on s Consumer and Residential Loans (period end) $1,729 $1,687 $1,467 $1,444 $1,412 $802 $786 $784 $772 $750 $927 $901 $683 $672 $662 Residential Consumer 1Q25 2Q25 3Q25 4Q25 1Q26
Strong Asset Quality Metrics 7*Includes all substandard loans and commercial and consumer non-performing loans $m illi on s Substandard Loans* (period end) $66.7 $64.1 $63.2 $59.4 $63.4 1.36% 1.29% 1.31% 1.22% 1.30% Substandard Loans Substandard Loans / Loans HFI 1Q25 2Q25 3Q25 4Q25 1Q26 $m ill io ns Non-Performing Loans (period end) $30.4 $26.4 $31.0 $34.9 $37.0 0.62% 0.53% 0.64% 0.72% 0.76% Commercial Resi Real Estate Consumer NPLs / Loans HFI 1Q25 2Q25 3Q25 4Q25 1Q26 $m ill io ns Net Charge Offs $0.9 $0.3 $0.8 $1.0 $0.6 0.07% 0.02% 0.07% 0.08% 0.05% Commercial Resi Real Estate Consumer Annualized NCOs/ Av. Loans 1Q25 2Q25 3Q25 4Q25 1Q26 H I G H L I G H T S & D E V E L O P M E N T S • Net Charge Offs of 5 basis points annualized remain low, and compare favorably to UBPR Peer group(1). • Early stage delinquencies remain low, and well controlled at 0.40%(2) bank-wide. • Modest increases in Substandard and Non-Performing Loans is indicative of risk rating migration and timing, with reductions anticipated in subsequent quarters. • Allowance for Credit Losses remains stable, and indicative of our strong credit profile and anticipated credit performance. (1) UBPR Peer Group 3, comparable data for full-year 2025 (2) 30-89 day past dues divided by total loans HFI
Data as of period end unless stated otherwise Relationship Based Core Deposits 8 H I G H L I G H T S & D E V E L O P M E N T S • Strong deposit growth of $147 million, or 11% LQA ,across both Consumer and Commercial portfolios • Improved portfolio mix, driven by non-interest-bearing deposit growth of $61 million, or 23% LQA. • Positive growth across all segments of non-interest bearing, interest bearing and CD’s. • Deposit Costs • Interest-bearing deposit cost decreased 7 bps in Q1 and 34 bps over the last year. • Portfolio is well positioned to provide stability to margin outlook for the remainder of 2026. $m illi on s Stable Consumer and Commercial Deposits 19.6% 19.7% 20.3% 20.4% 21.0% 58.9% 59.5% 57.8% 58.7% 57.6% 21.6% 20.9% 21.7% 20.9% 21.5% Non-Int Bearing% Interest Bearing% Time% 1Q25 2Q25 3Q25 4Q25 1Q26 $1,127 $3,393 $1,245 $1,121 $3,385 $1,193 $1,200 $3,198 $1,123 $1,102 $3,094 $1,079 $1,164 $3,119 $1,139 2.24% IB Deposit Cost 1.90% IB Deposit Cost
Net Interest Margin Expansion * Net Fully-Taxable Equivalent Interest Margin is a Non-GAAP measure. 9 Net Interest Margin 2.64% 2.66% 2.97% 3.04% 3.23% 3.52% 4.29% 4.29% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 2.00% 3.00% 4.00% 5.00% H I G H L I G H T S & D E V E L O P M E N T S • Q1 FTE NIM* remained unchanged from the prior quarter, at 4.29%, reflective of continued disciplined loan and deposit pricing as well as an optimized balance sheet. • Strong deposit growth during the quarter drove average interest-earning cash balances $60 million above plan, which dampened the Q1 NIM by about 4 basis points.
H I G H L I G H T S & D E V E L O P M E N T S • Non-interest income off to a strong start to the year, driven by favorable year-over-year gains in Service Charges and Wealth Management (Fiduciary activities). • Momentum in core community banking operations benefiting from past growth and hiring initiatives in Treasury Management and Mortgage, and more recently, in Wealth Management. 10 Data as of MRQ unless stated otherwise. * 1Q25 includes the pre-tax gain of $7.0MM from the sale of its Mortgage Warehouse business in "all other". ** 3Q25 includes the pre-tax loss of $7.7MM from the sale of the Indirect Auto Loan portfolio in "all other". Non-Interest Income Non-Interest Income
Non-Interest Expense 11 Data as of MRQ unless stated otherwise. H I G H L I G H T S & D E V E L O P M E N T S • Expense control continues to be a top priority of Executive Management, with a focus on operational efficiency in staffing models and outside professional services expenses. • For Q1, seasonal increases in employee benefits and occupancy expenses were mitigated by declines in outside business services expense and the timing of lower marketing spend. • Expect Q2 expense run-rate to modestly increase from Q1 levels related to annual merit increases and growth-driven marketing initiatives. Non-Interest Expense $39.3 $39.4 $52.9 $40.6 $40.7 $22.4 $22.7 $22.7 $21.9 $23.2 $16.6 $16.7 $17.5 $18.7 $17.6 $0.3 $12.7 Salaries & Employee Benefits All Other Non-Interest Expense Merger Related Expenses FHLB Prepayment Penalty 1Q25 2Q25 3Q25 4Q25 1Q26
Strong Capital Position * The tangible common equity to tangible common assets (TCE/TA) ratio and tangible book value per share (TBVPS) are non-GAAP measures. Please see appendix for reconciliations of non-GAAP information to its most comparable GAAP measures. ** Preliminary estimate – may be subject to change 12 TCE/TA* 8.37% 7.60% 8.38% 8.39% $14.32 $9.76 $10.32 $10.52 2Q25 3Q25 4Q25 1Q26 Leverage Ratio 9.59% 8.22% 9.55% 9.84% 2Q25 3Q25 4Q25 1Q26** CET 1 Ratio 11.48% 10.17% 10.42% 10.82% 2Q25 3Q25 4Q25 1Q26** Total RBC Ratio 14.44% 15.00% 14.36% 14.77% 2Q25 3Q25 4Q25 1Q26**
Full-Year 2026 Guidance Summary Loans (HFI) • Period-end total loans HFI to grow mid-single-digits • Led by consistent high-quality commercial loans Deposits & Funding • Period-end total deposits to grow mid-single-digits • Growth will be primarily in relationship-based commercial and consumer client balances Non-FTE NII & FTE NIM • Non-FTE net interest income to grow in the low-teens • FTE NIM to express relative stability over the year, in the range of 4.25%-4.35% • Full year average earning assets to modestly exceed $6 billion • Assumes no rate cuts in 2026 Non-Interest Income • Full year non-interest income in the mid-$40 million range Non-Interest Expense • Full year non-interest expense in the mid-$160 million range Effective Tax Rate • Effective tax rate in the 18.0% - 20.0% range, reflective of the new, higher earnings profile 13
Appendix
Diverse Commercial Lending Portfolio S T R O N G A N D T R A D I T I O N A L C O M M E R C I A L L E N D I N G • Multi-family represents 6.4% of loans ◦ No major metros outside Indiana and Michigan, other than Columbus, OH ◦ Zero rent regulated/stabilized originated or in portfolio ◦ $2.0 million average loan size • Non-owner-occupied office represents 4.0% of total loans ◦ All in Indiana and Michigan ◦ $1.4 million average loan size • Nursing Home and Assisted Living Facilities represents 2.0% of loans Data as of most-recent quarter (MRQ) unless stated otherwise. 15
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. 16
Non-GAAP Reconciliation 17 Three Months Ended March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Interest income (GAAP) (A) $ 86,651 $ 89,288 $ 92,836 $ 91,477 $ 89,175 Taxable-equivalent adjustment: Investment securities - tax exempt (1) 676 665 1,218 1,619 1,646 Loan receivable (2) 381 390 379 382 383 Interest income (non-GAAP) (B) $ 87,708 $ 90,343 $ 94,433 $ 93,478 $ 91,204 Interest expense (GAAP) (C) 24,411 25,812 34,450 36,122 36,908 Net interest income (GAAP) (D) =(A) - (C) $ 62,240 $ 63,476 $ 58,386 $ 55,355 $ 52,267 Net FTE interest income (non-GAAP) (E) = (B) - (C) $ 63,297 $ 64,531 $ 59,983 $ 57,356 $ 54,296 Average interest earning assets (F) $ 5,984,972 $ 5,967,328 $ 6,766,742 $ 7,125,467 $ 7,234,724 Net FTE interest margin (non-GAAP) (G) = (E*) / (F) 4.29 % 4.29 % 3.52 % 3.23 % 3.04 % (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 Net Fully-Taxable Equivalent ("FTE") Interest Margin (Dollars in Thousands, Unaudited)
Non-GAAP Reconciliation 18 Non–GAAP Reconciliation of Return on Average Tangible Common Equity (Dollars in Thousands, Unaudited) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Net income (loss) (GAAP) (A) $ 26,168 $ 26,921 $ (221,990) $ 20,644 $ 23,943 Average stockholders' equity (B) $ 707,916 $ 679,821 $ 731,657 $ 789,535 $ 780,269 Average intangible assets (C) 162,148 162,838 163,552 164,320 165,138 Average tangible equity (Non-GAAP) (D) = (B) - (C) $ 545,768 $ 516,983 $ 568,105 $ 625,215 $ 615,131 Return on average tangible common equity ("ROACE") (non-GAAP) (E) = (A*) / (D) 19.02 % 20.66 % (155.03) % 13.24 % 15.79 % *Annualized
Non-GAAP Reconciliation 19 Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Total stockholders' equity (GAAP) (A) $ 699,027 $ 688,251 $ 660,771 $ 790,852 $ 776,061 Intangible assets (end of period) (B) 161,716 162,391 163,097 163,803 164,618 Total tangible common equity (non-GAAP) (C) = (A) - (B) $ 537,311 $ 525,860 $ 497,674 $ 627,049 $ 611,443 Total assets (GAAP) (D) 6,564,216 6,436,612 6,712,497 7,652,051 7,628,636 Intangible assets (end of period) (B) 161,716 162,391 163,097 163,803 164,618 Total tangible assets (non-GAAP) (E) = (D) - (B) $ 6,402,500 $ 6,274,221 $ 6,549,400 $ 7,488,248 $ 7,464,018 Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E) 8.39 % 8.38 % 7.60 % 8.37 % 8.19 % Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets (Dollars in Thousands. Unaudited)
Non-GAAP Reconciliation 20 Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Total stockholders' equity (GAAP) (A) $ 699,027 $ 688,251 $ 660,771 $ 790,852 $ 776,061 Intangible assets (end of period) (B) 161,716 162,391 163,097 163,803 164,618 Total tangible common equity (non-GAAP) (C) = (A) - (B) $ 537,311 $ 525,860 $ 497,674 $ 627,049 $ 611,443 Common shares outstanding (D) 51,057 50,978 50,971 43,802 43,786 Tangible book value per common share (non-GAAP) (E) = (C) / (D) $ 10.52 $ 10.32 $ 9.76 $ 14.32 $ 13.96 Non-GAAP Reconciliation of Tangible Book Value Per Share (Dollars in Thousands. Unaudited)
Thank you John R. Stewart, CFA® Executive Vice President & Chief Financial Officer 515 Franklin Street, Michigan City, IN 46360 219-814-5833 Investor.HorizonBank.com
FAQ
How did Horizon Bancorp (HBNC) perform financially in Q1 2026?
Horizon Bancorp reported net income of $26.2 million, or $0.51 per diluted share, for Q1 2026. Profitability was strong, with a 1.62% return on average assets and 19.02% return on average tangible common equity, reflecting a high-margin community banking model.
What was Horizon Bancorp (HBNC)’s net interest margin in Q1 2026?
Horizon’s fully taxable equivalent net interest margin was 4.29% in Q1 2026, unchanged from Q4 2025. Net interest income reached $62.2 million, up 19.1% from the year-ago quarter, driven by disciplined loan and deposit pricing and strong core deposit growth.
How did Horizon Bancorp (HBNC)’s loans and deposits change in Q1 2026?
Total deposits grew $146.9 million to $5.4 billion, including $60.8 million growth in non-interest-bearing deposits. Total loans held for investment were about $4.9 billion, with commercial loans up $34.2 million annualized, while residential and consumer balances declined modestly.
What were Horizon Bancorp (HBNC)’s credit quality metrics in Q1 2026?
Credit quality remained strong. Annualized net charge-offs were just 0.05% of average loans, and total non-performing assets were $44.0 million, or 0.67% of total assets. The allowance for credit losses equaled 1.05% of loans held for investment at March 31, 2026.
How well capitalized is Horizon Bancorp (HBNC) after Q1 2026?
As of March 31, 2026, Horizon reported a common equity tier 1 capital ratio of 10.82% and total risk-based capital of 14.77%. Tangible common equity to tangible assets was 8.39%, and tangible book value per share increased to $10.52, indicating solid capital strength.
What 2026 guidance did Horizon Bancorp (HBNC) provide?
Management expects mid-single-digit growth in period-end loans and deposits for 2026, with non-FTE net interest income growing in the low-teens. They project a 4.25%-4.35% FTE net interest margin, non-interest income in the mid-$40 million range, and non-interest expense in the mid-$160 million range.