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Horizon Bancorp, Inc. (NASDAQ: HBNC) lifts Q2 2026 net income to $24.9M

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

Rhea-AI Filing Summary

Horizon Bancorp, Inc. reported unaudited second quarter 2026 results, with net income of $24.9 million, or $0.49 per diluted share, versus $20.6 million, or $0.47, a year earlier and $26.2 million in the prior quarter. Return on average assets was 1.54% and return on average tangible common equity was 18.05%. Net interest income reached $63.5 million and the net fully taxable-equivalent interest margin expanded to 4.37%. Results included a previously announced pre-tax legal charge of $3.1 million, reducing diluted EPS by $0.05.

Total assets were $6.6 billion at June 30, 2026, with loans held for investment of $5.0 billion and deposits of $5.4 billion. Capital remained strong, with a common equity tier 1 ratio of 11.09% and tangible common equity to tangible assets of 8.81%. Credit metrics were stable, with net charge-offs at 0.05% of average loans and non-performing assets at 0.66% of total assets. Management reiterated 2026 guidance for mid‑single‑digit loan and deposit growth, low‑teens net interest income growth, and a full‑year effective tax rate of 18%–20%.

Positive

  • Net income $24.9 million in Q2 2026, or $0.49 per diluted share, up from $20.6 million, or $0.47, in Q2 2025, with ROA of 1.54% and ROTCE of 18.05%.
  • Net FTE interest margin of 4.37% in Q2 2026, up from 4.29% in Q1 2026 and 3.23% a year earlier, supported by disciplined loan and deposit pricing.

Negative

  • $3.1 million pre-tax legal charge recorded in Q2 2026 increased non-interest expense to $43.8 million and reduced diluted EPS by approximately $0.05.

Filing Explained

The legal charge is recorded, while preliminary June 30 capital ratios remain subject to change pending the appeal process.

The company includes a $3.1 million legal charge in second-quarter expense, while the related accrual remains in place until the appeal process is finalized; the charge is recorded, but the matter is not yet resolved.

As a Form 8-K reporting a specified material event, the filing also furnishes June 30 capital figures, including a 11.09% common equity tier 1 ratio and a 15.01% total risk-based capital ratio; both are identified as preliminary estimates that may change.

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.
Net income $24.9 million For the three months ended June 30, 2026
Diluted EPS $0.49 For the three months ended June 30, 2026
Net interest income $63.5 million Second quarter 2026
Net FTE interest margin 4.37% Second quarter 2026 on a fully taxable-equivalent basis
Return on average assets 1.54% Second quarter 2026
Return on average tangible common equity 18.05% Second quarter 2026
Total assets $6.6 billion As of June 30, 2026
Common equity tier 1 capital ratio 11.09% Consolidated ratio as of June 30, 2026
net interest margin financial
"The net interest margin, on a fully taxable equivalent ("FTE") basis, at 4.37% showed strong quarter over quarter expansion"
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.
tangible common equity financial
"Tangible common equity totaled $565.1 million at June 30, 2026, and the ratio of tangible common equity to tangible assets was 8.81%"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
non-performing assets financial
"Non-performing assets are 0.66% of total assets at quarter end, down slightly from 0.67% at March 31, 2026"
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 June 30, 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.
fully taxable equivalent financial
"The net interest margin, on a fully taxable equivalent ("FTE") basis, at 4.37% showed strong quarter over quarter expansion"
A fully taxable equivalent converts a tax-free yield into the pretax yield you would need from a taxable investment to get the same after-tax return, using an investor’s marginal tax rate. Think of it like inflating a discounted price to the full sticker price so you can compare items side‑by‑side; investors use it to fairly compare tax-exempt securities with taxable alternatives and choose the better after-tax income.
Net income $24.9 million Compared with $26.2 million in Q1 2026 and $20.6 million in Q2 2025.
Diluted EPS $0.49 Compared with $0.51 in Q1 2026 and $0.47 in Q2 2025.
Net interest income $63.5 million Up from $55.4 million in Q2 2025.
Return on average assets 1.54% Compared with 1.62% in Q1 2026 and 1.09% in Q2 2025.
Net FTE interest margin 4.37% Up from 4.29% in Q1 2026 and 3.23% in Q2 2025.
Guidance

Company outlined 2026 targets including mid-single-digit growth in loans and deposits, low-teens growth in non-FTE net interest income, second-half FTE net interest margin of 4.30%-4.35%, non-interest income in the mid-$40 million range, non-interest expense in the low to mid-$160 million range excluding the Q2 legal charge, and an effective tax rate of 18.0%-20.0%.

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

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FAQ

What were Horizon Bancorp (HBNC)'s Q2 2026 earnings?
Horizon Bancorp reported Q2 2026 net income of $24.9 million, or $0.49 per diluted share. This compares with $26.2 million, or $0.51, in Q1 2026 and $20.6 million, or $0.47, in Q2 2025, reflecting strong profitability metrics.

How did Horizon Bancorp (HBNC)'s net interest margin perform in Q2 2026?
The company’s net FTE interest margin was 4.37% in Q2 2026. This expanded from 4.29% in Q1 2026 and 3.23% in Q2 2025, driven by disciplined loan and deposit pricing, strong commercial loan growth, and lower average interest-bearing cash balances.

What is Horizon Bancorp (HBNC)'s asset quality as of June 30, 2026?
Asset quality remained solid, with net charge-offs at 0.05% of average loans and non-performing assets at 0.66% of total assets. Total non-accrual loans were 0.65% of loans held for investment, and the allowance for credit losses was 1.05% of HFI loans.

How strong is Horizon Bancorp (HBNC)'s capital position after Q2 2026?
Horizon reported a common equity tier 1 capital ratio of 11.09% and total risk-based capital of 15.01% at June 30, 2026. Tangible common equity to tangible assets was 8.81%, and tangible book value per share increased to $11.06 during the quarter.

How did Horizon Bancorp (HBNC)'s balance sheet change in Q2 2026?
Total assets were $6.6 billion, up modestly from March 31, 2026. Loans held for investment rose to $5.0 billion, an increase of $75.9 million, while total deposits were $5.4 billion, down $22.1 million, reflecting a shift from time deposits to non-time balances.

What guidance did Horizon Bancorp (HBNC) provide for full-year 2026?
Management expects mid‑single‑digit growth in loans and deposits, low‑teens growth in non-FTE net interest income, second-half FTE NIM of 4.30%–4.35%, non-interest income in the mid‑$40 million range, non-interest expense in the low to mid‑$160 million range excluding the Q2 legal charge, and an 18%–20% tax rate.
0000706129false00007061292026-07-222026-07-22

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): July 22, 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. ☐


1


Item 2.02 Results of Operations and Financial Condition

On July 22, 2026, Horizon Bancorp, Inc. (the “Company”) issued a press release announcing earnings and other financial results for the three–months ended June 30, 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, July 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.DescriptionLocation
99.1
Press release issued on July 22, 2026
Attached
99.2
Horizon Bancorp, Inc. Investor Presentation dated July 22, 2026
Attached
104Cover 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, 2026HORIZON BANCORP, INC.
By:/s/ John R. Stewart, CFA
John R. Stewart, CFA
Executive Vice President & Chief Financial Officer



3

Horizon Bancorp, Inc. Reports Second Quarter 2026 Results
+
horizonbancorpinc876_sm-10a.jpg
Contact:John R. Stewart, CFA
EVP, Chief Financial Officer
Phone:(219) 814–5833
Fax:
(219) 874–9280
Date:July 22, 2026

FOR IMMEDIATE RELEASE

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

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

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

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

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
















1
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results



Second Quarter 2026 Highlights


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

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

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

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

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

•Expenses for the second quarter were well managed at $43.8 million, including the $3.1 million legal charge, as the Company remains committed to generating positive operating leverage through a more efficient expense base.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
2
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results

Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20262026202520252025
Income statement:
Net interest income$63,490 $62,240 $63,476 $58,386 $55,355 
Provision for credit losses 916 391 1,630 (3,572)2,462 
Non-interest income (loss)12,014 11,243 11,463 (295,334)10,920 
Non-interest expense43,844 40,747 40,615 52,952 39,417 
Income tax expense (benefit)5,836 6,177 5,773 (64,338)3,752 
Net Income (Loss)$24,908 $26,168 $26,921 $(221,990)$20,644 
Per share data:
Basic earnings (loss) per share$0.49 $0.51 $0.53 $(4.69)$0.47 
Diluted earnings (loss) per share0.49 0.51 0.53 (4.69)0.47 
Cash dividends declared per common share0.16 0.16 0.16 0.16 0.16 
Book value per common share14.21 13.69 13.50 12.96 18.06 
Market value - high20.29 18.68 18.47 16.88 15.88 
Market value - low16.76 15.57 15.04 15.01 12.92 
Weighted average shares outstanding - Basic51,082,827 50,987,426 50,975,693 47,311,642 43,794,490 
Weighted average shares outstanding - Diluted51,304,962 51,243,002 51,277,134 47,311,642 44,034,663 
Common shares outstanding (end of period)51,093,048 51,056,888 50,978,030 50,970,530 43,801,507 
Key ratios:
Return on average assets1.54 %1.62 %1.63 %(12.07)%1.09 %
Return on average stockholders' equity13.97 14.99 15.71 (120.37)10.49 
Total equity to total assets11.05 10.65 10.69 9.84 10.34 
Total loans to deposit ratio91.93 90.15 92.62 87.41 87.52 
Allowance for credit losses to HFI loans1.05 1.05 1.05 1.04 1.09 
Annualized net charge-offs of average total loans (1)
0.05 0.05 0.08 0.07 0.02 
Efficiency ratio58.07 55.45 54.20 (22.35)59.47 
Key metrics (Non-GAAP) (2)
Net FTE interest margin4.37 %4.29 %4.29 %3.52 %3.23 %
Return on average tangible common equity18.05 19.02 20.66 (155.03)13.24 
Tangible common equity to tangible assets8.81 8.39 8.38 7.60 8.37 
Tangible book value per common share$11.06 $10.52 $10.32 $9.76 $14.32 
(1) Average total loans includes loans held for investment and held for sale.
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
3
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results
Income Statement Highlights

Net Interest Income

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

Provision for Credit Losses

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

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

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

Non-Interest Income

For the Quarter EndedJune 30,March 31,December 31,September 30,June 30,
(Dollars in Thousands)20262026202520252025
Non-interest (Loss) Income
Service charges on deposit accounts$3,376 $3,524 $3,341 $3,474 $3,208 
Wire transfer fees67 63 66 71 69 
Interchange fees3,595 3,373 3,445 3,510 3,403 
Fiduciary activities1,501 1,556 1,560 1,363 1,251 
Gain (loss) on sale of investment securities— — 1 (299,132)— 
Gain on sale of mortgage loans1,576 1,090 1,296 1,208 1,219 
Mortgage servicing income net of impairment350 337 352 351 375 
Increase in cash value of bank owned life insurance345 333 360 379 346 
Other income (loss)1,204 967 1,042 (6,558)1,049 
Total non-interest (loss) income$12,014 $11,243 $11,463 $(295,334)$10,920 

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








1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
4
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results


Non-Interest Expense

For the Quarter EndedJune 30,March 31,December 31,September 30,June 30,
(Dollars in Thousands)20262026202520252025
Non-interest Expense
Salaries and employee benefits$24,194 $23,187 $21,895 $22,698 $22,731 
Net occupancy expenses3,698 4,197 3,718 3,321 3,127 
Data processing3,631 3,353 3,128 2,933 2,951 
Professional fees(64)929 1,083 808 735 
Outside services and consultants2,537 2,764 3,035 3,844 3,278 
Loan expense1,417 1,219 1,183 1,237 1,231 
FDIC insurance expense1,003 1,023 1,251 1,345 1,216 
Core deposit intangible amortization675 675 706 706 816 
Prepayment penalties— — — 12,680 — 
Other losses115 192 732 131 245 
Other expense6,638 3,208 3,884 3,249 3,087 
Total non-interest expense$43,844 $40,747 $40,615 $52,952 $39,417 

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

Income Taxes

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

Balance Sheet Highlights

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

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

Overall, balance sheet growth during the quarter reflected a combination of steady asset growth, proactive liquidity management, and ongoing efforts to optimize the deposit base. Management continues to focus on maintaining a strong funding position while supporting measured, relationship-driven loan growth aligned with long-term strategic objectives.
5
Horizon Bancorp, Inc. Reports Second 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 June 30, 2026:

For the Quarter EndedJune 30,March 31,December 31,September 30,
2026*202620252025
Consolidated Capital Ratios
Total capital (to risk-weighted assets)15.01 %14.76 %14.36 %15.00 %
Tier 1 capital (to risk-weighted assets)12.17 11.90 11.51 11.27 
Common equity tier 1 capital (to risk-weighted assets)11.09 10.81 10.42 10.17 
Tier 1 capital (to average assets)10.17 9.84 9.55 8.22 
*Preliminary estimate - may be subject to change

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

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

Credit Quality

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

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

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
6
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results
Earnings Conference Call

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

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

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

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.6 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

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



















7
Horizon Bancorp, Inc. Reports Second 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 Second Quarter 2026 Results

Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20262026202520252025
Interest Income
Loans receivable$77,740 $75,104 $77,238 $79,561 $78,618 
Investment securities - taxable7,248 7,494 7,688 6,631 5,941 
Investment securities - tax-exempt2,583 2,544 2,498 4,581 6,088 
Other937 1,509 1,864 2,063 830 
Total interest income88,508 86,651 89,288 92,836 91,477 
Interest Expense
Deposits20,479 19,944 21,228 25,726 26,053 
Borrowed funds1,655 1,654 1,749 5,924 8,171 
Subordinated notes1,904 1,830 1,811 1,731 829 
Junior subordinated debentures issued to capital trusts980 983 1,024 1,069 1,070 
Total interest expense25,018 24,411 25,812 34,450 36,123 
Net Interest Income63,490 62,240 63,476 58,386 55,354 
Provision for credit losses 916 391 1,630 (3,572)2,462 
Net Interest Income after Provision for Credit Losses62,574 61,849 61,846 61,958 52,892 
Non-interest Income
Service charges on deposit accounts3,376 3,524 3,341 3,474 3,208 
Wire transfer fees67 63 66 71 69 
Interchange fees3,595 3,373 3,445 3,510 3,403 
Fiduciary activities1,501 1,556 1,560 1,363 1,251 
Gain (loss) on sale of investment securities— — 1 (299,132)— 
Gain on sale of mortgage loans1,576 1,090 1,296 1,208 1,219 
Mortgage servicing income net of impairment350 337 352 351 375 
Increase in cash value of bank owned life insurance345 333 360 379 346 
Other income (loss)1,204 967 1,042 (6,558)1,049 
Total non-interest income (loss)12,014 11,243 11,463 (295,334)10,920 
Non-interest Expense
Salaries and employee benefits24,194 23,187 21,895 22,698 22,731 
Net occupancy expenses3,698 4,197 3,718 3,321 3,127 
Data processing3,631 3,353 3,128 2,933 2,951 
Professional fees(64)929 1,083 808 735 
Outside services and consultants2,537 2,764 3,035 3,844 3,278 
Loan expense1,417 1,219 1,183 1,237 1,231 
FDIC insurance expense1,003 1,023 1,251 1,345 1,216 
Core deposit intangible amortization675 675 706 706 816 
Prepayment penalties— — — 12,680 — 
Other losses115 192 732 131 245 
Other expense6,638 3,208 3,884 3,249 3,087 
Total non-interest expense43,844 40,747 40,615 52,952 39,417 
Income (Loss) Before Income Taxes30,744 32,345 32,694 (286,328)24,395 
Income tax expense (benefit)5,836 6,177 5,773 (64,338)3,752 
Net Income (Loss)$24,908 $26,168 $26,921 $(221,990)$20,643 
Basic Earnings (Loss) Per Share$0.49 $0.51 $0.53 $(4.69)$0.47 
Diluted Earnings (Loss) Per Share0.49 0.51 0.53 (4.69)0.47 


9
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results
Condensed Consolidated Balance Sheet
(Dollars in Thousands, Unaudited)
Three Months Ended for the Period
June 30,March 31,December 31,September 30,June 30,
20262026202520252025
Assets
Interest earning assets
Federal funds sold$— $— $— $— $2,024 
Interest earning deposits145,571 190,717 72,646 381,860 34,174 
Federal Home Loan Bank stock7,418 45,713 45,713 45,713 45,412 
Investment securities, held for trading3,885 3,983 3,883 598 — 
Investment securities, available for sale897,764 882,168 875,414 883,242 231,999 
Investment securities, held to maturity— — — — 1,819,087 
Loans held for sale5,147 9,821 9,778 1,921 2,994 
Gross loans held for investment (HFI)4,959,120 4,878,549 4,876,542 4,823,669 4,985,582 
Total Interest earning assets6,018,905 6,010,951 5,883,976 6,137,003 7,121,272 
Non-interest earning assets
Allowance for credit losses(51,921)(51,297)(51,299)(50,178)(54,399)
Cash72,378 68,354 66,813 76,395 101,719 
Cash value of life insurance37,410 37,065 36,732 37,762 37,755 
Other assets215,032 217,649 215,460 226,247 148,773 
Goodwill155,211 155,211 155,211 155,211 155,211 
Other intangible assets5,829 6,505 7,180 7,886 8,592 
Premises and equipment, net90,939 90,763 92,805 93,413 93,398 
Interest receivable30,377 29,015 29,733 28,758 39,730 
Total non-interest earning assets555,255 553,265 552,635 575,494 530,779 
Total assets$6,574,160 $6,564,216 $6,436,611 $6,712,497 $7,652,051 
Liabilities
Savings and money market deposits$3,195,553 $3,119,034 $3,094,231 $3,198,332 $3,385,413 
Time deposits1,104,316 1,163,807 1,102,478 1,199,681 1,193,180 
Borrowings153,707 159,825 160,118 160,206 880,336 
Repurchase agreements69,278 66,004 88,468 86,966 95,089 
Subordinated notes98,318 98,262 98,215 154,011 55,807 
Junior subordinated debentures issued to capital trusts57,789 57,740 57,688 57,636 57,583 
Total interest earning liabilities4,678,961 4,664,672 4,601,198 4,856,832 5,667,408 
Non-interest bearing deposits1,100,355 1,139,466 1,078,708 1,122,888 1,121,163 
Interest payable10,862 8,537 12,892 12,395 14,007 
Other liabilities57,793 52,514 55,562 59,611 58,621 
Total liabilities5,847,971 5,865,189 5,748,360 6,051,726 6,861,199 
Stockholders’ Equity
Preferred stock— — — — — 
Common stock— — — — — 
Additional paid-in capital460,610 459,799 459,243 458,734 360,758 
Retained earnings289,594 272,941 255,004 236,312 466,497 
Accumulated other comprehensive (loss)(24,015)(33,713)(25,996)(34,275)(36,403)
Total stockholders’ equity726,189 699,027 688,251 660,771 790,852 
Total liabilities and stockholders’ equity$6,574,160 $6,564,216 $6,436,611 $6,712,497 $7,652,051 
10
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results


Loans and Deposits
(Dollars in Thousands, Unaudited)
June 30,March 31,December 31,September 30,June 30,% Change
20262026202520252025Q2'26 vs Q1'26Q2'26 vs Q2'25
Loans:
Commercial real estate$2,445,173 $2,443,582 $2,421,863 $2,366,956 $2,321,951 — %5 %
Commercial & Industrial1,085,008 1,023,068 1,010,545 989,609 976,740 6 %11 %
Total commercial3,530,181 3,466,650 3,432,408 3,356,565 3,298,691 2 %7 %
Residential Real estate755,707 750,108 772,427 783,850 786,026 1 %(4)%
Consumer673,232 661,791 671,707 683,254 900,865 2 %(25)%
Total loans held for investment4,959,120 4,878,549 4,876,542 4,823,669 4,985,582 2 %(1)%
Loans held for sale5,147 9,821 9,778 1,921 2,994 (48)%72 %
Total loans$4,964,267 $4,888,370 $4,886,320 $4,825,590 $4,988,576 2 %— %
Deposits:
Interest bearing deposits$1,664,367 $1,611,795 $1,639,857 $1,715,471 $1,713,058 3 %(3)%
Savings and money market deposits1,531,186 1,507,239 1,454,374 1,482,861 1,672,355 2 %(8)%
Time deposits1,104,316 1,163,807 1,102,478 1,199,681 1,193,180 (5)%(7)%
Total Interest bearing deposits4,299,869 4,282,841 4,196,709 4,398,013 4,578,593 — %(6)%
Non-interest bearing deposits
Non-interest bearing deposits1,100,355 1,139,466 1,078,708 1,122,888 1,121,164 (3)%(2)%
Total deposits$5,400,224 $5,422,307 $5,275,417 $5,520,901 $5,699,757 — %(5)%








11
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results
Average Balance Sheet
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30, 2026
March 31, 2026
June 30, 2025
Average
Balance
Interest(4)(6)
Average
Rate(4)
Average
Balance
Interest(4)(6)
Average
Rate(4)
Average
Balance
Interest(4)(6)
Average
Rate(4)
Assets
Interest earning assets
Interest earning deposits (incl. Fed Funds Sold)$101,650 $936 3.69 %$165,084 $1,509 3.71 %$72,993 $830 4.56 %
Federal Home Loan Bank stock15,834 259 6.56 %45,713 551 4.89 %45,412 1,075 9.49 %
Investment securities - taxable (1)584,471 6,990 4.80 %581,146 6,944 4.85 %959,238 4,867 2.03 %
Investment securities - non-taxable (1)314,064 3,270 4.18 %319,276 3,220 4.09 %1,100,731 7,706 2.81 %
Total investment securities898,535 10,260 4.58 %900,422 10,164 4.58 %2,059,969 12,573 2.45 %
Loans receivable (2) (3)4,916,799 78,140 6.37 %4,873,753 75,485 6.28 %4,947,093 79,000 6.41 %
Total interest earning assets5,932,818 89,595 6.06 %5,984,972 87,709 5.94 %7,125,467 93,478 5.26 %
Non-interest earning assets
Cash and due from banks71,692 68,007 86,316 
Allowance for credit losses(51,106)(51,217)(52,560)
Other assets535,339 533,989 472,175 
Total average assets$6,488,743 $6,535,751 $7,631,398 
Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing demand deposits$1,627,013 $5,011 1.24 %$1,638,208 $4,586 1.14 %$1,727,713 $6,803 1.58 %
Saving and money market deposits1,484,771 5,981 1.62 %1,475,444 5,619 1.54 %1,651,866 8,200 1.99 %
Time deposits1,116,139 9,488 3.41 %1,153,484 9,739 3.42 %1,233,582 11,050 3.59 %
Total Deposits4,227,923 20,480 1.94 %4,267,136 19,944 1.90 %4,613,161 26,053 2.27 %
Borrowings150,118 1,435 3.83 %150,229 1,421 3.84 %847,862 7,777 3.68 %
Repurchase agreements67,494 219 1.30 %77,376 233 1.22 %88,058 394 1.79 %
Subordinated notes98,279 1,904 7.77 %98,231 1,830 7.56 %55,785 829 5.96 %
Junior subordinated debentures issued to capital trusts57,758 980 6.81 %57,706 983 6.91 %57,550 1,070 7.46 %
Total interest bearing liabilities4,601,572 25,018 2.18 %4,650,678 24,411 2.13 %5,662,416 36,123 2.56 %
Non-interest bearing liabilities
Demand deposits1,117,113 1,117,930 1,114,982 
Accrued interest payable and other liabilities55,032 59,227 64,465 
Stockholders' equity715,026 707,916 789,535 
Total average liabilities and stockholders' equity$6,488,743 $6,535,751 $7,631,398 
Net FTE interest income (non-GAAP) (5)$64,577 $63,298 $57,355 
Less FTE adjustments (4)1,087 1,058 2,001 
Net Interest Income$63,490 $62,240 $55,354 
Net FTE interest margin (Non-GAAP) (4)(5)4.37 %4.29 %3.23 %
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
(2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
(6) Includes dividend income on Federal Home Loan Bank stock
12
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results

Credit Quality
(Dollars in Thousands Except Ratios, Unaudited)
Quarter Ended
June 30,March 31,December 31,September 30,June 30,% Change
20262026202520252025Q2'26 vs Q1'26Q2'26 vs Q2'25
Non-accrual loans
Commercial$17,843 $15,761 $14,549 $12,303 $7,547 13 %136 %
Residential Real estate8,454 10,607 10,087 9,256 9,525 (20)%(11)%
Consumer6,004 8,416 7,821 7,799 7,222 (29)%(17)%
Total non-accrual loans32,301 34,784 32,457 29,358 24,294 (7)%33 %
90 days and greater delinquent - accruing interest2,632 2,211 2,489 1,608 2,113 19 %25 %
Total non-performing loans$34,933 $36,995 $34,946 $30,966 $26,407 (6)%32 %
Other real estate owned
Commercial$463 $594 $539 $272 $176 (22)%163 %
Residential Real estate570 631 672 769 463 (10)%23 %
Consumer3,633 1,875 480 480 480 94 %657 %
Total other real estate owned4,666 3,100 1,691 1,521 1,119 51 %317 %
Other non-performing assets (1)
$4,094 $3,935 $3,991 $3,228 $2,937 4 %39 %
Total non-performing assets$43,693 $44,030 $40,628 $35,715 $30,463 (1)%43 %
Loan data:
Accruing 30 to 89 days past due loans$21,296 $19,379 $24,580 $24,784 $31,401 10 %(32)%
Substandard loans64,564 63,419 59,365 63,236 64,100 2 %1 %
Net charge-offs (recoveries)
Commercial$295 $339 $436 $294 $84 (13)%251 %
Residential Real estate46 1 (25)19 52 4500 %(12)%
Consumer264 285 559 518 118 (7)%124 %
Total net charge-offs$605 $625 $970 $831 $254 (3)%138 %
Allowance for credit losses
Commercial$36,122 $34,997 $35,473 $34,390 $34,413 3 %5 %
Residential Real estate2,958 3,183 3,183 3,082 3,229 (7)%(8)%
Consumer12,841 13,117 12,643 12,706 16,757 (2)%(23)%
Total allowance for credit losses$51,921 $51,297 $51,299 $50,178 $54,399 1 %(5)%
Credit quality ratios
Non-accrual loans to HFI loans0.65 %0.71 %0.67 %0.61 %0.49 %
Non-performing assets to total assets0.66 %0.67 %0.63 %0.53 %0.40 %
Annualized net charge-offs of average total loans0.05 %0.05 %0.08 %0.07 %0.02 %
Allowance for credit losses to HFI loans1.05 %1.05 %1.05 %1.04 %1.09 %
(1) Other non-performing assets consist of a single available for sale debt security placed on non-accrual status.
13
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results
Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20262026202520252025
Interest income (GAAP)(A)$88,508 $86,651 $89,288 $92,836 $91,477 
Taxable-equivalent adjustment:
   Investment securities - tax exempt (1)686 676 665 1,218 1,619 
   Loan receivable (2)402 381 390 379 382 
Interest income (non-GAAP)(B)89,596 87,708 90,343 94,433 93,478 
Interest expense (GAAP)(C)25,018 24,411 25,812 34,450 36,123 
Net interest income (GAAP)(D) =(A) - (C)$63,490 $62,240 $63,476 $58,386 $55,354 
Net FTE interest income (non-GAAP)(E) = (B) - (C)$64,578 $63,297 $64,531 $59,983 $57,355 
Average interest earning assets(F)5,932,818 5,984,972 5,967,328 6,766,742 7,125,467 
Net FTE interest margin (non-GAAP)(G) = (E*) / (F)4.37 %4.29 %4.29 %3.52 %3.23 %
(1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
(2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized
Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20262026202520252025
Net income (loss) (GAAP)(A)$24,908 $26,168 $26,921 $(221,990)$20,644 
​
Average stockholders' equity(B)$715,026 $707,916 $679,821 $731,657 $789,535 
Average intangible assets(C)161,471 162,148 162,838 163,552 164,320 
Average tangible equity (Non-GAAP)(D) = (B) - (C)$553,555 $545,768 $516,983 $568,105 $625,215 
Return on average tangible common equity ("ROACE") (non-GAAP)(E) = (A*) / (D)18.05 %19.02 %20.66 %(155.03)%13.24 %
*Annualized
Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20262026202520252025
Total stockholders' equity (GAAP)(A)$726,189 $699,027 $688,251 $660,771 $790,852 
Intangible assets (end of period)(B)161,041 161,716 162,391 163,097 163,803 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$565,148 $537,311 $525,860 $497,674 $627,049 
Total assets (GAAP)(D)$6,574,160 $6,564,216 $6,436,612 $6,712,497 $7,652,051 
Intangible assets (end of period)(B)161,041 161,716 162,391 163,097 163,803 
Total tangible assets (non-GAAP)(E) = (D) - (B)$6,413,119 $6,402,500 $6,274,221 $6,549,400 $7,488,248 
Tangible common equity to tangible assets (Non-GAAP)(G) = (C) / (E)8.81 %8.39 %8.38 %7.60 %8.37 %
14
Horizon Bancorp, Inc. Reports Second Quarter 2026 Results
Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20262026202520252025
Total stockholders' equity (GAAP)(A)$726,189 $699,027 $688,251 $660,771 $790,852 
Intangible assets (end of period)(B)161,041 161,716 162,391 163,097 163,803 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$565,148 $537,311 $525,860 $497,674 $627,049 
Common shares outstanding(D)51,093,048 51,056,888 50,978,030 50,970,530 43,801,507 
Tangible book value per common share (non-GAAP)(E) = (C) / (D)$11.06 $10.52 $10.32 $9.76 $14.32 
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 ) S e c o n d Q u a r t e r E n d e d J u n e 3 0 , 2 0 2 6 J u l y 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: 1.54%. Displayed consistently strong results, despite the Q2 legal charge. • ROTCE*: 18.05%. Sustained strong shareholder value creation. • NIM*: 4.37%. Expanded net interest margin from 4.29% in Q1, reflecting positive trends in loan repricing and disciplined deposit cost management, and lower average cash balances. Capital • Solid growth of 28 bps in CET1 to 11.09%, up from 10.81% in 1Q26. • Total risk-based capital of 15.01% in 2Q26 compared to 14.76% in 1Q26. Balance Sheet Advancement • Total loan growth of $81 million, or 6.6% LQA, led by quality Commercial loan growth of $64 million, or 7.4% LQA. • Total deposit balances remained relatively unchanged from a strong Q1, with $37 million of growth in non-time deposits offset by a planned $59 million decline in time deposits. Asset Quality • Excellent credit performance, with net charge offs consistent at 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* $5.0B 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 Loans up $81 million or 6.6% LQA • Commercial balances drove growth, increasing $64 million, primarily within the C&I segment. • Commercial Real Estate remained relatively flat during the quarter, driven by higher than average payoffs for the quarter. • Mortgage and Consumer balances increased modestly, supported by elevated production and limited refinance activity during the quarter. • Year to date balances increased at a mid-single-digit rate, while new origination spreads continue to perform in line with expectations.

 

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 7.4% LQA • Quarter end balances up $64 million. • Lansing, Grand Rapids, Troy, and Midland, MI and Indianapolis, IN markets were significant contributors to the linked quarter growth. • Growth in Commercial and Industrial predominantly in the core commercial portfolio complimented by equipment finance. • Well balanced geographies, product mix and industry • Favorable Q2 new production mix, with 47% C&I. • No segment exceeds 5.9% of total loans. Data represents total loans HFI as of MRQ unless stated otherwise 5 27% 21% 14% 14% 9% 10% 5% Central Indiana West Michigan Southwest Michigan Northern Indiana Northern Michigan East Michigan Other $m illi on s Commercial Loans (period end) $3,299 $3,357 $3,432 $3,467 $3,530 $39 $47 $53 $55 $63 $977 $990 $1,011 $1,023 $1,085 $705 $709 $699 $718 $740 $1,578 $1,611 $1,669 $1,670 $1,643 Other* C&I CRE (owner occ.) CRE (non-owner occ.) 2Q25 3Q25 4Q25 1Q26 2Q26 Geography $3.5B MRQ end 47% 21% 31% 2% CRE (non-owner occ.) CRE(Owner occ.) C&I Other* MIX $3.5B MRQ end

 

Prime Consumer/Mortgage 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 continued to maintain strong spreads in mortgages, resulting in modest growth in balances in Q2. • Momentum in Mortgage heading into Q3 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 767 759 DEBT-TO-INCOME 32% 35% LOAN-TO-VALUE 67% 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) $1,687 $1,467 $1,444 $1,412 $1,429 $787 $784 $772 $750 $756 $901 $683 $672 $662 $673 Residential Consumer 2Q25 3Q25 4Q25 1Q26 2Q26

 

Strong Asset Quality Metrics 7*Includes all substandard loans and commercial and consumer non-performing loans $m illi on s Substandard Loans* (period end) $64.1 $63.2 $59.4 $63.4 $64.6 1.29% 1.31% 1.22% 1.30% 1.30% Substandard Loans Substandard Loans / Loans HFI 2Q25 3Q25 4Q25 1Q26 2Q26 $m ill io ns Non-Performing Loans (period end) $26.4 $31.0 $34.9 $37.0 $34.9 0.53% 0.64% 0.72% 0.76% 0.70% Commercial Resi Real Estate Consumer NPLs / Loans HFI 2Q25 3Q25 4Q25 1Q26 2Q26 $m ill io ns Net Charge Offs $0.3 $0.8 $1.0 $0.6 $0.6 0.02% 0.07% 0.08% 0.05% 0.05% Commercial Resi Real Estate Consumer Annualized NCOs/ Av. Loans 2Q25 3Q25 4Q25 1Q26 2Q26 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 0.43%(2) bank-wide. • Stable Substandard and Non-Performing Loans within expected ranges, changes indicative of risk rating migration and timing of collection activities. • 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 • Total deposits up by $125 million year to date • Maintained strong total deposits performance levels from Q1. Year to date growth aligned with mid single digit growth expectations. • Time deposits decreased by $59 million, as management elected to call certain higher-cost time deposit balances during Q2. • Deposit Costs • Interest-bearing deposit costs increased by a modest 4 bps from Q1. Costs remain 33 bps lower than a year ago. • Portfolio continues to be well positioned to provide stability to margin outlook for the remainder of 2026. $m illi on s Stable Consumer and Commercial Deposits 19.7% 20.3% 20.4% 21.0% 20.4% 59.5% 57.8% 58.7% 57.6% 59.2% 20.9% 21.7% 20.9% 21.5% 20.4% Non-Int Bearing% Interest Bearing% Time% 2Q25 3Q25 4Q25 1Q26 2Q26 $1,121 $3,385 $1,193 $1,123 $3,198 $1,200 $1,102 $3,094 $1,079 $1,164 $3,119 $1,139 $1,104 $3,196 $1,100 2.27% IB Deposit Cost 1.94% IB Deposit Cost

 

Net Interest Margin Expansion * Net Fully-Taxable Equivalent Interest Margin is a Non-GAAP measure. 9 Net Interest Margin 2.66% 2.97% 3.04% 3.23% 3.52% 4.29% 4.29% 4.37% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 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 • Q2 FTE NIM* expanded by 8 bps points from the prior quarter, to 4.37%, reflective of continued disciplined loan and deposit pricing and a decline in average interest-bearing cash balances. • Strong commercial loan growth and origination pricing during the quarter contributed to the increase in the average rate on loans by 9 bps, which compared favorably to the 4 bps increase in interest-bearing liability costs.

 

H I G H L I G H T S & D E V E L O P M E N T S • Total non-interest income grew 10% from the prior year, led by gains in fiduciary activities and mortgage-related income, up 20% and 21%, respectively. • Growth in interchange fees and service charges continue to benefit from higher activity-based fees. • Momentum in core community banking operations continue to benefit 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. * 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 Q2, results include the previously announced $3.1 million legal charge in other expense. Apart from this item, seasonal increases in salary expense and higher planned marketing spend was offset by seasonally lower benefits and occupancy costs, and lower professional fees. Non-Interest Expense $39.4 $52.9 $40.6 $40.7 $43.8 $22.7 $22.7 $21.9 $23.2 $24.2 $16.7 $17.5 $18.7 $17.6 $19.6 $12.7 Salaries & Employee Benefits All Other Non-Interest Expense FHLB Prepayment Penalty 2Q25 3Q25 4Q25 1Q26 2Q26

 

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* 7.60% 8.38% 8.39% 8.81% $9.76 $10.32 $10.52 $11.06 3Q25 4Q25 1Q26 2Q26 Leverage Ratio 8.22% 9.55% 9.84% 10.17% 3Q25 4Q25 1Q26 2Q26** CET 1 Ratio 10.17% 10.42% 10.81% 11.09% 3Q25 4Q25 1Q26 2Q26** Total RBC Ratio 15.00% 14.36% 14.76% 15.01% 3Q25 4Q25 1Q26 2Q26**

 

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 • Second half FTE NIM in the range of 4.30%-4.35%, assuming cash balances elevated from Q2 levels • Full year average earning assets to modestly exceed $6 billion • Assumes one 25 basis point hike in late October Non-Interest Income • Full year non-interest income in the mid-$40 million range Non-Interest Expense • Full year non-interest expense in the low to mid-$160 million range, excluding the Q2 legal charge Effective Tax Rate • Effective tax rate in the 18.0% - 20.0% range 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 5.9% 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 4.1% 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 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Interest income (GAAP) (A) $ 88,508 $ 86,651 $ 89,288 $ 92,836 $ 91,477 Taxable-equivalent adjustment: Investment securities - tax exempt (1) 686 676 665 1,218 1,619 Loan receivable (2) 402 381 390 379 382 Interest income (non-GAAP) (B) $ 89,596 $ 87,708 $ 90,343 $ 94,433 $ 93,478 Interest expense (GAAP) (C) 25,018 24,411 25,812 34,450 36,123 Net interest income (GAAP) (D) =(A) - (C) $ 63,490 $ 62,240 $ 63,476 $ 58,386 $ 55,354 Net FTE interest income (non-GAAP) (E) = (B) - (C) $ 64,578 $ 63,297 $ 64,531 $ 59,983 $ 57,355 Average interest earning assets (F) $ 5,932,818 $ 5,984,972 $ 5,967,328 $ 6,766,742 $ 7,125,467 Net FTE interest margin (non-GAAP) (G) = (E*) / (F) 4.37 % 4.29 % 4.29 % 3.52 % 3.23 % (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment *Annualized Non–GAAP Reconciliation of 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 June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Net income (loss) (GAAP) (A) $ 24,908 $ 26,168 $ 26,921 $ (221,990) $ 20,644 Average stockholders' equity (B) $ 715,026 $ 707,916 $ 679,821 $ 731,657 $ 789,535 Average intangible assets (C) 161,471 162,148 162,838 163,552 164,320 Average tangible equity (Non-GAAP) (D) = (B) - (C) $ 553,555 $ 545,768 $ 516,983 $ 568,105 $ 625,215 Return on average tangible common equity ("ROACE") (non-GAAP) (E) = (A*) / (D) 18.05 % 19.02 % 20.66 % (155.03) % 13.24 % *Annualized

 

Non-GAAP Reconciliation 19 Three Months Ended June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Total stockholders' equity (GAAP) (A) $ 726,189 $ 699,027 $ 688,251 $ 660,771 $ 790,852 Intangible assets (end of period) (B) 161,041 161,716 162,391 163,097 163,803 Total tangible common equity (non-GAAP) (C) = (A) - (B) $ 565,148 $ 537,311 $ 525,860 $ 497,674 $ 627,049 Total assets (GAAP) (D) 6,574,160 6,564,216 6,436,612 6,712,497 7,652,051 Intangible assets (end of period) (B) 161,041 161,716 162,391 163,097 163,803 Total tangible assets (non-GAAP) (E) = (D) - (B) $ 6,413,119 $ 6,402,500 $ 6,274,221 $ 6,549,400 $ 7,488,248 Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E) 8.81 % 8.39 % 8.38 % 7.60 % 8.37 % Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets (Dollars in Thousands. Unaudited)

 

Non-GAAP Reconciliation 20 Three Months Ended June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Total stockholders' equity (GAAP) (A) $ 726,189 $ 699,027 $ 688,251 $ 660,771 $ 790,852 Intangible assets (end of period) (B) 161,041 161,716 162,391 163,097 163,803 Total tangible common equity (non-GAAP) (C) = (A) - (B) $ 565,148 $ 537,311 $ 525,860 $ 497,674 $ 627,049 Common shares outstanding (D) 51,093 51,057 50,978 50,971 43,802 Tangible book value per common share (non-GAAP) (E) = (C) / (D) $ 11.06 $ 10.52 $ 10.32 $ 9.76 $ 14.32 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

 

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