Horizon Bancorp Q3 2026 earnings reach $28.7M
Year-to-date deposits increased $206 million, or 5.2% annualized, while non-maturity deposits grew $228 million, or 7.3% annualized.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Horizon Bancorp, Inc. (HBNC) reported third-quarter 2026 net income of $28.7 million, or $0.56 per diluted share, compared with $24.9 million in Q2 2026 and a $222.0 million net loss in Q3 2025. Net interest income was $65.2 million, up 11.6% year over year; net FTE interest margin was 4.37%, versus 3.52% a year earlier.
Total deposits increased $81.1 million during the quarter to $5.5 billion, and loans held for investment grew 3.7% on a linked-quarter annualized basis. Non-performing assets were $44.6 million, or 0.68% of assets, compared with $43.7 million and 0.66% in Q2. Q4 guidance calls for non-FTE net interest income of $66–67 million and modest FTE margin expansion, assuming one additional 25-basis-point hike in early December.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet interest income rose 11.6% year over year to $65.2 million.
Negative
- Moderate pointNon-performing assets increased 25% year over year to $44.6 million.
Filing Explained
At
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, or exhibit attachments filed with this report.
Key Figures
Net income: $28.7 million
Diluted earnings per share: $0.56 per diluted share
Net interest income: $65.2 million
+5 more
8 metrics
Net income
$28.7 million
Three months ended September 30, 2026
Diluted earnings per share
$0.56 per diluted share
Three months ended September 30, 2026
Net interest income
$65.2 million
Third quarter 2026; up 11.6% year over year
Net FTE interest margin
4.37%
Third quarter 2026
Total deposits
$5.5 billion
As of September 30, 2026
Non-performing assets
$44.6 million
As of September 30, 2026; up 25% year over year
Annualized net charge-offs of average total loans
0.10%
Third quarter 2026
Common equity tier 1 capital to risk-weighted assets
11.53%
Quarter ended September 30, 2026; preliminary estimate
Key Terms
net FTE interest margin, Common equity tier 1 capital, non-performing assets, net charge-offs, +1 more
5 terms
net FTE interest margin financial
"net FTE interest margin was 4.37%"
Common equity tier 1 capital financial
"Common equity tier 1 capital (to risk-weighted assets)"
Core capital a bank holds consisting mainly of common shares and retained profits that can absorb losses without forcing the bank to sell assets or seek emergency help; items that can’t reliably cover losses are excluded. Think of it as the bank’s shock-absorbing cushion: a higher common equity tier 1 (CET1) level and ratio means regulators and investors view the bank as better able to survive bad loans or market shocks, so it signals lower risk to shareholders and creditors.
non-performing assets financial
"Non-performing assets to total assets of 0.68%"
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.
net charge-offs financial
"annualized net charge-offs of 0.10%"
Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.
allowance for credit losses financial
"Allowance for credit losses to HFI loans"
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.
Earnings Snapshot
Net income: $28.7 million · Guidance included
Third quarter 2026
Net income
$28.7 million
Compared with $24.9 million in Q2 2026 and a $222.0 million net loss in Q3 2025
Diluted earnings per share
$0.56 per diluted share
Compared with $0.49 in Q2 2026 and a $(4.69) loss per diluted share in Q3 2025
Net interest income
$65.2 million
Up 11.6% from $58.4 million in Q3 2025
Net FTE interest margin (non-GAAP)
4.37%
Compared with 3.52% in Q3 2025
Guidance
Q4 non-FTE net interest income of $66–67 million; Q4 FTE net interest margin to show continued modest expansion, assuming one additional 25-basis-point hike in early December.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were HBNC's third-quarter 2026 earnings?
Horizon Bancorp reported net income of $28.7 million, or $0.56 per diluted share, for Q3 2026. It reported $24.9 million, or $0.49 per diluted share, in Q2 2026, and a $222.0 million net loss, or $(4.69) per diluted share, in Q3 2025.
What is HBNC's Q4 2026 guidance?
Q4 guidance calls for $66–67 million in non-FTE net interest income and continued modest expansion in FTE net interest margin. It assumes one additional 25-basis-point hike in early December. Full-year period-end loans held for investment and total deposits are expected to grow mid-single digits.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): October 21, 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 October 21, 2026, Horizon Bancorp, Inc. (the “Company”) issued a press release announcing earnings and other financial results for the three–months ended September 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, October 22, 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 October 21, 2026 | Attached | |||||||||
| 99.2 | Horizon Bancorp, Inc. Investor Presentation dated October 21, 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: | October 21, 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 Third Quarter 2026 Results
| Contact: | John R. Stewart, CFA | ||||
| EVP, Chief Financial Officer | |||||
| Phone: | (219) 814–5833 | ||||
| Fax: | (219) 874–9280 | ||||
| Date: | October 21, 2026 | ||||
FOR IMMEDIATE RELEASE
Horizon Bancorp, Inc. Reports Strong Third Quarter 2026 Results, Highlighted by Continued Peer Leading Profitability Metrics and Positive Balance Sheet Momentum
Michigan City, Indiana, October 21, 2026 (GLOBE NEWSWIRE) – (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended September 30, 2026.
“Horizon’s high-quality community banking model continues to demonstrate consistency and durability in an ever-changing macroeconomic environment. Our results through the first nine months of 2026 reflect that strength, with annualized return on average assets remaining above 1.60%, return on tangible common equity of 20%, and the net interest margin sustained in the mid-4.30% range. Despite a meaningful shift in the interest rate outlook since the beginning of the year, our expectations for the business have changed very little, underscoring the resiliency and predictability embedded in our business model,” said President and CEO, Thomas Prame. “During the first nine months of 2026, loans held-for-investment and total deposits increased by $129 million and $206 million, respectively, consistent with our outlook for mid-single-digit organic growth. This performance was further enhanced by continued positive momentum across our fee income businesses and a disciplined approach to expense management. We believe this consistent, low-volatility financial performance will continue to compound capital at peer-leading levels, which remains the cornerstone of our long-term value proposition for shareholders”.
Net income for the three months ended September 30, 2026 was $28.7 million, or $0.56 per diluted share, compared to net income of $24.9 million, or $0.49, for the second quarter of 2026 and net loss of $222.0 million, or $(4.69) per diluted share, for the third quarter of 2025.
Net income for the nine months ended September 30, 2026 was $79.7 million, or $1.55 per diluted share, compared to net loss of $177.4 million, or $(3.94), for the nine months ended September 30, 2025.
1
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
Third Quarter 2026 Highlights
•Durability of top-tier performance metrics continues to reflect the strength of Horizon’s highly productive community banking model. During the third quarter, the Company generated an annualized return on average assets of 1.73% and a return on average tangible common equity of 20.03%.
•Net interest income of $65.2 million increased 11.6% compared with $58.4 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis1, was 4.37%, consistent with the 4.37% reported for the three months ended June 30, 2026, and significantly higher than the 3.52% reported in the comparable year ago period.
•Total deposits continue to trend favorably, growing by $81.2 million during the quarter, or 6.0% on an annualized basis. These results were further enhanced by the 9.7% annualized growth in non-time deposits. Total deposit costs, inclusive of non-interest bearing balances, remains low, at 1.57%.
•Total loans held for investment ("HFI") increased 3.7% compared to the linked quarter annualized, with balanced growth between commercial, mortgage and consumer portfolios. Loan pipelines continue to be consistent, reflective of Horizon’s attractive markets and relationship based community banking model.
•Credit quality remained strong, with annualized net charge offs of 0.10% of average loans during the third quarter. Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.68%.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
2
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
| Financial Highlights | |||||||||||||||||||||||||||||
| (Dollars in Thousands Except Share and Per Share Data and Ratios) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||||||||||||
| Income statement: | |||||||||||||||||||||||||||||
| Net interest income | $ | 65,159 | $ | 63,490 | $ | 62,240 | $ | 63,476 | $ | 58,386 | |||||||||||||||||||
| Provision (benefit) for credit losses | 1,300 | 916 | 391 | 1,630 | (3,572) | ||||||||||||||||||||||||
| Non-interest income (loss) | 11,930 | 12,014 | 11,243 | 11,463 | (295,334) | ||||||||||||||||||||||||
| Non-interest expense | 41,512 | 43,844 | 40,747 | 40,615 | 52,952 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 5,610 | 5,836 | 6,177 | 5,773 | (64,338) | ||||||||||||||||||||||||
| Net Income (Loss) | $ | 28,667 | $ | 24,908 | $ | 26,168 | $ | 26,921 | $ | (221,990) | |||||||||||||||||||
| Per share data: | |||||||||||||||||||||||||||||
| Basic earnings (loss) per share | $ | 0.56 | $ | 0.49 | $ | 0.51 | $ | 0.53 | $ | (4.69) | |||||||||||||||||||
| Diluted earnings (loss) per share | 0.56 | 0.49 | 0.51 | 0.53 | (4.69) | ||||||||||||||||||||||||
| Cash dividends declared per common share | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | ||||||||||||||||||||||||
| Book value per common share | 13.68 | 14.21 | 13.69 | 13.50 | 12.96 | ||||||||||||||||||||||||
| Market value - high | 20.80 | 20.29 | 18.68 | 18.47 | 16.88 | ||||||||||||||||||||||||
| Market value - low | 18.83 | 16.76 | 15.57 | 15.04 | 15.01 | ||||||||||||||||||||||||
| Weighted average shares outstanding - Basic | 51,107,844 | 51,082,827 | 50,987,426 | 50,975,693 | 47,311,642 | ||||||||||||||||||||||||
| Weighted average shares outstanding - Diluted | 51,358,616 | 51,304,962 | 51,243,002 | 51,277,134 | 47,311,642 | ||||||||||||||||||||||||
| Common shares outstanding (end of period) | 51,110,798 | 51,093,048 | 51,056,888 | 50,978,030 | 50,970,530 | ||||||||||||||||||||||||
| Key ratios: | |||||||||||||||||||||||||||||
| Return on average assets | 1.73 | % | 1.54 | % | 1.62 | % | 1.63 | % | (12.07) | % | |||||||||||||||||||
| Return on average stockholders' equity | 15.61 | 13.97 | 14.99 | 15.71 | (120.37) | ||||||||||||||||||||||||
| Total equity to total assets | 10.61 | 11.05 | 10.65 | 10.69 | 9.84 | ||||||||||||||||||||||||
| Total loans to deposit ratio | 91.39 | 91.93 | 90.15 | 92.62 | 87.41 | ||||||||||||||||||||||||
| Allowance for credit losses to HFI loans | 1.04 | 1.05 | 1.05 | 1.05 | 1.04 | ||||||||||||||||||||||||
Annualized net charge-offs of average total loans (1) | 0.10 | 0.05 | 0.05 | 0.08 | 0.07 | ||||||||||||||||||||||||
| Efficiency ratio | 53.85 | 58.07 | 55.45 | 54.20 | (22.35) | ||||||||||||||||||||||||
Key metrics (Non-GAAP) (2) | |||||||||||||||||||||||||||||
| Net FTE interest margin | 4.37 | % | 4.37 | % | 4.29 | % | 4.29 | % | 3.52 | % | |||||||||||||||||||
| Return on average tangible common equity | 20.03 | 18.05 | 19.02 | 20.66 | (155.03) | ||||||||||||||||||||||||
| Tangible common equity to tangible assets | 8.38 | 8.81 | 8.39 | 8.38 | 7.60 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 10.54 | $ | 11.06 | $ | 10.52 | $ | 10.32 | $ | 9.76 | |||||||||||||||||||
(1) Average total loans includes loans held for investment and held for sale. | |||||||||||||||||||||||||||||
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures. | |||||||||||||||||||||||||||||
3
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
Income Statement Highlights
Net Interest Income
Net interest income was $65.2 million in the third quarter of 2026, compared to $63.5 million in the second quarter of 2026, driven by the continued strength of the Company's net FTE interest margin1, which remained consistent at 4.37% when compared to the second quarter of 2026. The resiliency in the margin is reflective of continued disciplined loan and deposit pricing and a favorable cashflow redeployment profile during the quarter.
Provision for Credit Losses
During the third quarter of 2026, the Company recorded a provision for credit losses of $1.3 million. This compares to a recorded provision for credit losses of $0.9 million during the second quarter of 2026, and a benefit for credit losses of $3.6 million during the third quarter of 2025. The increase in the provision for credit losses during the third quarter of 2026 when compared with the second quarter of 2026 was primarily due to changes in the economic forecast, net loan growth and an increase in specific reserves on commercial loans.
For the third quarter of 2026, net charge-offs were $1.2 million, or an annualized 0.10% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2026, and net charge-offs of $0.8 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2025.
The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.04% at September 30, 2026, down from 1.05% at June 30, 2026, and consistent with 1.04% at September 30, 2025.
Non-Interest Income
| For the Quarter Ended | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||
| (Dollars in Thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||
| Non-interest Income (Loss) | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | $ | 3,518 | $ | 3,376 | $ | 3,524 | $ | 3,341 | $ | 3,474 | |||||||||||||||||||
| Wire transfer fees | 65 | 67 | 63 | 66 | 71 | ||||||||||||||||||||||||
| Interchange fees | 3,537 | 3,595 | 3,373 | 3,445 | 3,510 | ||||||||||||||||||||||||
| Fiduciary activities | 1,465 | 1,501 | 1,556 | 1,560 | 1,363 | ||||||||||||||||||||||||
| Gain (loss) on sale of investment securities | (8) | — | — | 1 | (299,132) | ||||||||||||||||||||||||
| Gain on sale of mortgage loans | 2,125 | 1,576 | 1,090 | 1,296 | 1,208 | ||||||||||||||||||||||||
| Mortgage servicing income net of impairment | 246 | 350 | 337 | 352 | 351 | ||||||||||||||||||||||||
| Increase in cash value of bank owned life insurance | 385 | 345 | 333 | 360 | 379 | ||||||||||||||||||||||||
| Other income (loss) | 597 | 1,204 | 967 | 1,042 | (6,558) | ||||||||||||||||||||||||
| Total non-interest income (loss) | $ | 11,930 | $ | 12,014 | $ | 11,243 | $ | 11,463 | $ | (295,334) | |||||||||||||||||||
Total non-interest income was $11.9 million in the third quarter of 2026, compared to non-interest income of $12.0 million in the second quarter of 2026. The third quarter performance reflects an increase in the gain on sale of mortgage loans due to increased volumes and wider margins on loan sales, offset by a decrease in other income and lower net mortgage servicing revenue owed to increased amortization of mortgage servicing rights. All other components of non-interest income remained relatively stable quarter over quarter.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
4
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
Non-Interest Expense
| For the Quarter Ended | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||
| (Dollars in Thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||
| Non-interest Expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 24,233 | $ | 24,194 | $ | 23,187 | $ | 21,895 | $ | 22,698 | |||||||||||||||||||
| Net occupancy expenses | 3,701 | 3,698 | 4,197 | 3,718 | 3,321 | ||||||||||||||||||||||||
| Data processing | 3,377 | 3,631 | 3,353 | 3,128 | 2,933 | ||||||||||||||||||||||||
| Professional fees | 631 | (64) | 929 | 1,083 | 808 | ||||||||||||||||||||||||
| Outside services and consultants | 2,619 | 2,537 | 2,764 | 3,035 | 3,844 | ||||||||||||||||||||||||
| Loan expense | 1,505 | 1,417 | 1,219 | 1,183 | 1,237 | ||||||||||||||||||||||||
| FDIC insurance expense | 680 | 1,003 | 1,023 | 1,251 | 1,345 | ||||||||||||||||||||||||
| Core deposit intangible amortization | 620 | 675 | 675 | 706 | 706 | ||||||||||||||||||||||||
| Prepayment penalties | — | — | — | — | 12,680 | ||||||||||||||||||||||||
| Other losses | 308 | 115 | 192 | 732 | 131 | ||||||||||||||||||||||||
| Other expense | 3,838 | 6,638 | 3,208 | 3,884 | 3,249 | ||||||||||||||||||||||||
| Total non-interest expense | $ | 41,512 | $ | 43,844 | $ | 40,747 | $ | 40,615 | $ | 52,952 | |||||||||||||||||||
Total non-interest expense was $41.5 million in the third quarter of 2026, compared to $43.8 million in the second quarter of 2026. The decrease was driven by the previously announced second quarter legal charge for $3.1 million in other expense, which did not recur. Apart from this item, the decrease was driven by a reduction in FDIC insurance expense of $0.3 million and a decline in data processing expenses of $0.3 million. These variances were partially offset by a more normalized run rate in professional fees of $0.7 million. All other components of non-interest expense remained relatively stable quarter over quarter.
Income Taxes
Horizon recorded a net tax expense of $5.6 million for the third quarter of 2026, resulting in an effective tax rate of 16.4%, compared to 19.0% for the second quarter of 2026. Income tax expense was favorably impacted by a discrete benefit of $0.9 million in the third quarter of 2026.
Balance Sheet Highlights
Total assets increased by $17.0 million, or 0.3%, to $6.6 billion as of September 30, 2026 when compared to the prior period. Asset growth during the period was primarily driven by an increase in gross loans HFI of $46.9 million, an increase in other assets of $22.1 million and an increase in non-interest earning cash of $11.8 million. The increase was partially offset by a decrease in investment securities of $40.2 million and a decrease in interest earning deposits of $24.6 million.
Total deposits increased by $81.1 million, or 1.5%, to $5.5 billion as of September 30, 2026 compared with June 30, 2026. The increase was driven by a $84.0 million increase in interest bearing deposits, a $12.2 million increase in savings and money market deposits and a $8.8 million increase in non-interest-bearing demand deposits. The increase was partially offset by a decrease of $23.9 million in time deposits. The overall increase in deposits reflects continued success in core deposit gathering efforts.
Overall, balance sheet growth during the quarter reflected a combination of steady loan and deposit growth, and proactive liquidity management. Management continues to focus on maintaining a strong funding position while supporting measured, relationship-driven loan growth aligned with creating long-term shareholder value.
5
Horizon Bancorp, Inc. Reports Third 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 September 30, 2026:
| For the Quarter Ended | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||
| 2026* | 2026 | 2026 | 2025 | |||||||||||||||||||||||
| Consolidated Capital Ratios | ||||||||||||||||||||||||||
| Total capital (to risk-weighted assets) | 15.48 | % | 15.02 | % | 14.76 | % | 14.36 | % | ||||||||||||||||||
| Tier 1 capital (to risk-weighted assets) | 12.62 | 12.17 | 11.90 | 11.51 | ||||||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 11.53 | 11.09 | 10.81 | 10.42 | ||||||||||||||||||||||
| Tier 1 capital (to average assets) | 10.37 | 10.17 | 9.84 | 9.55 | ||||||||||||||||||||||
| *Preliminary estimate - may be subject to change | ||||||||||||||||||||||||||
As of September 30, 2026, the ratio of total stockholders’ equity to total assets is 10.61%. Book value per common share was $13.68, decreasing $0.53 during the third quarter of 2026, primarily due to an increase in unrealized losses recorded in accumulated other comprehensive income.
Tangible common equity1 totaled $538.9 million at September 30, 2026, and the ratio of tangible common equity to tangible assets1 was 8.38% at September 30, 2026, down from 8.81% at June 30, 2026. Tangible book value1 which excludes intangible assets from total equity, per common share was $10.54 at September 30, 2026.
Credit Quality
As of September 30, 2026, total non-accrual loans increased by $1.4 million from June 30, 2026, and represent 0.67% of total loans held for investment. Total non-performing assets increased by $0.9 million, to $44.6 million, compared with $43.7 million at June 30, 2026. Non-performing assets are 0.68% of total assets at quarter end, up slightly from 0.66% at June 30, 2026.
For the quarter ended September 30, 2026, net charge-offs were $1.2 million, or 0.10% annualized of average loans. Charge‑off levels during the quarter remained low, and consistent with management’s expectations, reflecting a continued focus on disciplined underwriting and proactive portfolio monitoring. Overall, credit metrics remain stable, and management continues to closely monitor portfolio performance in the current economic environment.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
6
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
Earnings Conference Call
As previously announced, Horizon will host a conference call to review its third quarter financial results and operating performance.
Participants may access the live conference call on October 22, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 1-833-974-2379 from the United States and Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.
A telephone replay of the call will be available approximately one hour after the end of the conference through November 22, 2026. The replay may be accessed by dialing 1-855-669-9658 from the United States and Canada, or 1–412–317-0088 from other international locations, and entering the access code 1977515.
About Horizon Bancorp, Inc.
Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.6 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.
Use of Non-GAAP Financial Measures
Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.
7
Horizon Bancorp, Inc. Reports Third 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 Third Quarter 2026 Results
| Condensed Consolidated Statements of Income | |||||||||||||||||||||||||||||
| (Dollars in Thousands Except Per Share Data, Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||||
| Loans receivable | $ | 79,580 | $ | 77,740 | $ | 75,104 | $ | 77,238 | $ | 79,561 | |||||||||||||||||||
| Investment securities - taxable | 7,426 | 7,248 | 7,494 | 7,688 | 6,631 | ||||||||||||||||||||||||
| Investment securities - tax-exempt | 2,570 | 2,583 | 2,544 | 2,498 | 4,581 | ||||||||||||||||||||||||
| Other | 1,493 | 937 | 1,509 | 1,864 | 2,063 | ||||||||||||||||||||||||
| Total interest income | 91,069 | 88,508 | 86,651 | 89,288 | 92,836 | ||||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||||||
| Deposits | 21,365 | 20,479 | 19,944 | 21,228 | 25,726 | ||||||||||||||||||||||||
| Borrowed funds | 1,655 | 1,655 | 1,654 | 1,749 | 5,924 | ||||||||||||||||||||||||
| Subordinated notes | 1,898 | 1,904 | 1,830 | 1,811 | 1,731 | ||||||||||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 992 | 980 | 983 | 1,024 | 1,069 | ||||||||||||||||||||||||
| Total interest expense | 25,910 | 25,018 | 24,411 | 25,812 | 34,450 | ||||||||||||||||||||||||
| Net Interest Income | 65,159 | 63,490 | 62,240 | 63,476 | 58,386 | ||||||||||||||||||||||||
| Provision (benefit) for credit losses | 1,300 | 916 | 391 | 1,630 | (3,572) | ||||||||||||||||||||||||
| Net Interest Income after Provision for Credit Losses | 63,859 | 62,574 | 61,849 | 61,846 | 61,958 | ||||||||||||||||||||||||
| Non-interest Income (loss) | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | 3,518 | 3,376 | 3,524 | 3,341 | 3,474 | ||||||||||||||||||||||||
| Wire transfer fees | 65 | 67 | 63 | 66 | 71 | ||||||||||||||||||||||||
| Interchange fees | 3,537 | 3,595 | 3,373 | 3,445 | 3,510 | ||||||||||||||||||||||||
| Fiduciary activities | 1,465 | 1,501 | 1,556 | 1,560 | 1,363 | ||||||||||||||||||||||||
| Gain (loss) on sale of investment securities | (8) | — | — | 1 | (299,132) | ||||||||||||||||||||||||
| Gain on sale of mortgage loans | 2,125 | 1,576 | 1,090 | 1,296 | 1,208 | ||||||||||||||||||||||||
| Mortgage servicing income net of impairment | 246 | 350 | 337 | 352 | 351 | ||||||||||||||||||||||||
| Increase in cash value of bank owned life insurance | 385 | 345 | 333 | 360 | 379 | ||||||||||||||||||||||||
| Other income (loss) | 597 | 1,204 | 967 | 1,042 | (6,558) | ||||||||||||||||||||||||
| Total non-interest income (loss) | 11,930 | 12,014 | 11,243 | 11,463 | (295,334) | ||||||||||||||||||||||||
| Non-interest Expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 24,233 | 24,194 | 23,187 | 21,895 | 22,698 | ||||||||||||||||||||||||
| Net occupancy expenses | 3,701 | 3,698 | 4,197 | 3,718 | 3,321 | ||||||||||||||||||||||||
| Data processing | 3,377 | 3,631 | 3,353 | 3,128 | 2,933 | ||||||||||||||||||||||||
| Professional fees | 631 | (64) | 929 | 1,083 | 808 | ||||||||||||||||||||||||
| Outside services and consultants | 2,619 | 2,537 | 2,764 | 3,035 | 3,844 | ||||||||||||||||||||||||
| Loan expense | 1,505 | 1,417 | 1,219 | 1,183 | 1,237 | ||||||||||||||||||||||||
| FDIC insurance expense | 680 | 1,003 | 1,023 | 1,251 | 1,345 | ||||||||||||||||||||||||
| Core deposit intangible amortization | 620 | 675 | 675 | 706 | 706 | ||||||||||||||||||||||||
| Prepayment penalties | — | — | — | — | 12,680 | ||||||||||||||||||||||||
| Other losses | 308 | 115 | 192 | 732 | 131 | ||||||||||||||||||||||||
| Other expense | 3,838 | 6,638 | 3,208 | 3,884 | 3,249 | ||||||||||||||||||||||||
| Total non-interest expense | 41,512 | 43,844 | 40,747 | 40,615 | 52,952 | ||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 34,277 | 30,744 | 32,345 | 32,694 | (286,328) | ||||||||||||||||||||||||
| Income tax expense (benefit) | 5,610 | 5,836 | 6,177 | 5,773 | (64,338) | ||||||||||||||||||||||||
| Net Income (Loss) | $ | 28,667 | $ | 24,908 | $ | 26,168 | $ | 26,921 | $ | (221,990) | |||||||||||||||||||
| Basic Earnings (Loss) Per Share | $ | 0.56 | $ | 0.49 | $ | 0.51 | $ | 0.53 | $ | (4.69) | |||||||||||||||||||
| Diluted Earnings (Loss) Per Share | 0.56 | 0.49 | 0.51 | 0.53 | (4.69) | ||||||||||||||||||||||||
9
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
| Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended for the Period | |||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||||||||||
| Federal funds sold | $ | 5,113 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
| Interest earning deposits | 120,965 | 145,571 | 190,717 | 72,646 | 381,860 | ||||||||||||||||||||||||
| Federal Home Loan Bank stock | 7,418 | 7,418 | 45,713 | 45,713 | 45,713 | ||||||||||||||||||||||||
| Investment securities, held for trading | 3,979 | 3,885 | 3,983 | 3,883 | 598 | ||||||||||||||||||||||||
| Investment securities, available for sale | 857,429 | 897,764 | 882,168 | 875,414 | 883,242 | ||||||||||||||||||||||||
| Loans held for sale | 3,523 | 5,147 | 9,821 | 9,778 | 1,921 | ||||||||||||||||||||||||
| Gross loans held for investment (HFI) | 5,005,979 | 4,959,120 | 4,878,549 | 4,876,542 | 4,823,669 | ||||||||||||||||||||||||
| Total Interest earning assets | 6,004,406 | 6,018,905 | 6,010,951 | 5,883,976 | 6,137,003 | ||||||||||||||||||||||||
| Non-interest earning assets | |||||||||||||||||||||||||||||
| Allowance for credit losses | (52,310) | (51,921) | (51,297) | (51,299) | (50,178) | ||||||||||||||||||||||||
| Cash | 84,222 | 72,378 | 68,354 | 66,813 | 76,395 | ||||||||||||||||||||||||
| Cash value of life insurance | 37,799 | 37,410 | 37,065 | 36,732 | 37,762 | ||||||||||||||||||||||||
| Other assets | 237,135 | 215,032 | 217,649 | 215,460 | 226,247 | ||||||||||||||||||||||||
| Goodwill | 155,211 | 155,211 | 155,211 | 155,211 | 155,211 | ||||||||||||||||||||||||
| Other intangible assets | 5,209 | 5,829 | 6,505 | 7,180 | 7,886 | ||||||||||||||||||||||||
| Premises and equipment, net | 92,129 | 90,939 | 90,763 | 92,805 | 93,413 | ||||||||||||||||||||||||
| Interest receivable | 27,344 | 30,377 | 29,015 | 29,733 | 28,758 | ||||||||||||||||||||||||
| Total non-interest earning assets | 586,739 | 555,255 | 553,265 | 552,635 | 575,494 | ||||||||||||||||||||||||
| Total assets | $ | 6,591,145 | $ | 6,574,160 | $ | 6,564,216 | $ | 6,436,611 | $ | 6,712,497 | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Savings and money market deposits | $ | 3,291,751 | $ | 3,195,553 | $ | 3,119,034 | $ | 3,094,231 | $ | 3,198,332 | |||||||||||||||||||
| Time deposits | 1,080,445 | 1,104,316 | 1,163,807 | 1,102,478 | 1,199,681 | ||||||||||||||||||||||||
| Borrowings | 150,589 | 153,707 | 159,825 | 160,118 | 160,206 | ||||||||||||||||||||||||
| Repurchase agreements | 23,986 | 69,278 | 66,004 | 88,468 | 86,966 | ||||||||||||||||||||||||
| Subordinated notes | 98,366 | 98,318 | 98,262 | 98,215 | 154,011 | ||||||||||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 57,838 | 57,789 | 57,740 | 57,688 | 57,636 | ||||||||||||||||||||||||
| Total interest earning liabilities | 4,702,975 | 4,678,961 | 4,664,672 | 4,601,198 | 4,856,832 | ||||||||||||||||||||||||
| Non-interest bearing deposits | 1,109,178 | 1,100,355 | 1,139,466 | 1,078,708 | 1,122,888 | ||||||||||||||||||||||||
| Interest payable | 6,487 | 10,862 | 8,537 | 12,892 | 12,395 | ||||||||||||||||||||||||
| Other liabilities | 73,202 | 57,793 | 52,514 | 55,562 | 59,611 | ||||||||||||||||||||||||
| Total liabilities | 5,891,842 | 5,847,971 | 5,865,189 | 5,748,360 | 6,051,726 | ||||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
| Common stock | — | — | — | — | — | ||||||||||||||||||||||||
| Additional paid-in capital | 461,298 | 460,610 | 459,799 | 459,243 | 458,734 | ||||||||||||||||||||||||
| Retained earnings | 310,017 | 289,594 | 272,941 | 255,004 | 236,312 | ||||||||||||||||||||||||
| Accumulated other comprehensive (loss) | (72,012) | (24,015) | (33,713) | (25,996) | (34,275) | ||||||||||||||||||||||||
| Total stockholders’ equity | 699,303 | 726,189 | 699,027 | 688,251 | 660,771 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 6,591,145 | $ | 6,574,160 | $ | 6,564,216 | $ | 6,436,611 | $ | 6,712,497 | |||||||||||||||||||
10
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
| Loans and Deposits | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | % Change | ||||||||||||||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | Q3'26 vs Q2'26 | Q3'26 vs Q3'25 | |||||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 2,435,166 | $ | 2,445,173 | $ | 2,443,582 | $ | 2,421,863 | $ | 2,366,956 | — | % | 3 | % | |||||||||||||||||||||||||||
| Commercial & Industrial | 1,107,176 | 1,085,008 | 1,023,068 | 1,010,545 | 989,609 | 2 | % | 12 | % | ||||||||||||||||||||||||||||||||
| Total commercial | 3,542,342 | 3,530,181 | 3,466,650 | 3,432,408 | 3,356,565 | — | % | 6 | % | ||||||||||||||||||||||||||||||||
| Residential Real estate | 772,223 | 755,707 | 750,108 | 772,427 | 783,850 | 2 | % | (1) | % | ||||||||||||||||||||||||||||||||
| Consumer | 691,414 | 673,232 | 661,791 | 671,707 | 683,254 | 3 | % | 1 | % | ||||||||||||||||||||||||||||||||
| Total loans held for investment | 5,005,979 | 4,959,120 | 4,878,549 | 4,876,542 | 4,823,669 | 1 | % | 4 | % | ||||||||||||||||||||||||||||||||
| Loans held for sale | 3,523 | 5,147 | 9,821 | 9,778 | 1,921 | (32) | % | 83 | % | ||||||||||||||||||||||||||||||||
| Total loans | $ | 5,009,502 | $ | 4,964,267 | $ | 4,888,370 | $ | 4,886,320 | $ | 4,825,590 | 1 | % | 4 | % | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||||||||
| Interest bearing deposits | $ | 1,748,378 | $ | 1,664,367 | $ | 1,611,795 | $ | 1,639,857 | $ | 1,715,471 | 5 | % | 2 | % | |||||||||||||||||||||||||||
| Savings and money market deposits | 1,543,373 | 1,531,186 | 1,507,239 | 1,454,374 | 1,482,861 | 1 | % | 4 | % | ||||||||||||||||||||||||||||||||
| Time deposits | 1,080,445 | 1,104,316 | 1,163,807 | 1,102,478 | 1,199,681 | (2) | % | (10) | % | ||||||||||||||||||||||||||||||||
| Total Interest bearing deposits | 4,372,196 | 4,299,869 | 4,282,841 | 4,196,709 | 4,398,013 | 2 | % | (1) | % | ||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | |||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | 1,109,178 | 1,100,355 | 1,139,466 | 1,078,708 | 1,122,888 | 1 | % | (1) | % | ||||||||||||||||||||||||||||||||
| Total deposits | $ | 5,481,374 | $ | 5,400,224 | $ | 5,422,307 | $ | 5,275,417 | $ | 5,520,901 | 2 | % | (1) | % | |||||||||||||||||||||||||||
11
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
| Average Balance Sheet | |||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||
| Average Balance | Interest(4)(6) | Average Rate(4) | Average Balance | Interest(4)(6) | Average Rate(4) | Average Balance | Interest(4)(6) | Average Rate(4) | |||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||||||||||
| Interest earning deposits (incl. Fed Funds Sold) | $ | 158,544 | $ | 1,493 | 3.74 | % | $ | 101,650 | $ | 936 | 3.69 | % | $ | 185,665 | $ | 2,062 | 4.41 | % | |||||||||||
| Federal Home Loan Bank stock | 7,418 | 188 | 10.05 | % | 15,834 | 259 | 6.56 | % | 45,549 | 862 | 7.51 | % | |||||||||||||||||
| Investment securities - taxable (1) | 583,994 | 7,238 | 4.92 | % | 584,471 | 6,990 | 4.80 | % | 792,829 | 5,769 | 2.89 | % | |||||||||||||||||
| Investment securities - non-taxable (1) | 314,702 | 3,253 | 4.10 | % | 314,064 | 3,270 | 4.18 | % | 763,488 | 5,799 | 3.01 | % | |||||||||||||||||
| Total investment securities | 898,696 | 10,491 | 4.63 | % | 898,535 | 10,260 | 4.58 | % | 1,556,317 | 11,568 | 2.95 | % | |||||||||||||||||
| Loans receivable (2) (3) | 4,949,830 | 79,959 | 6.41 | % | 4,916,799 | 78,140 | 6.37 | % | 4,979,211 | 79,941 | 6.37 | % | |||||||||||||||||
| Total interest earning assets | 6,014,488 | 92,131 | 6.08 | % | 5,932,818 | 89,595 | 6.06 | % | 6,766,742 | 94,433 | 5.54 | % | |||||||||||||||||
| Non-interest earning assets | |||||||||||||||||||||||||||||
| Cash and due from banks | 71,519 | 71,692 | 83,616 | ||||||||||||||||||||||||||
| Allowance for credit losses | (51,675) | (51,106) | (54,072) | ||||||||||||||||||||||||||
| Other assets | 539,582 | 535,339 | 501,590 | ||||||||||||||||||||||||||
| Total average assets | $ | 6,573,914 | $ | 6,488,743 | $ | 7,297,876 | |||||||||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||||||||||
| Interest bearing demand deposits | $ | 1,679,248 | $ | 5,392 | 1.27 | % | $ | 1,627,013 | $ | 5,011 | 1.24 | % | $ | 1,708,446 | $ | 6,687 | 1.55 | % | |||||||||||
| Saving and money market deposits | 1,517,894 | 6,717 | 1.76 | % | 1,484,771 | 5,981 | 1.62 | % | 1,636,428 | 8,204 | 1.99 | % | |||||||||||||||||
| Time deposits | 1,086,343 | 9,256 | 3.38 | % | 1,116,139 | 9,488 | 3.41 | % | 1,198,279 | 10,835 | 3.59 | % | |||||||||||||||||
| Total Deposits | 4,283,485 | 21,365 | 1.98 | % | 4,227,923 | 20,480 | 1.94 | % | 4,543,153 | 25,726 | 2.25 | % | |||||||||||||||||
| Borrowings | 150,083 | 1,464 | 3.87 | % | 150,118 | 1,435 | 3.83 | % | 601,889 | 5,535 | 3.65 | % | |||||||||||||||||
| Repurchase agreements | 59,040 | 191 | 1.28 | % | 67,494 | 219 | 1.30 | % | 88,721 | 389 | 1.74 | % | |||||||||||||||||
| Subordinated notes | 98,335 | 1,898 | 7.66 | % | 98,279 | 1,904 | 7.77 | % | 91,032 | 1,731 | 7.54 | % | |||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 57,807 | 992 | 6.81 | % | 57,758 | 980 | 6.81 | % | 57,602 | 1,069 | 7.36 | % | |||||||||||||||||
| Total interest bearing liabilities | 4,648,750 | 25,910 | 2.21 | % | 4,601,572 | 25,018 | 2.18 | % | 5,382,397 | 34,450 | 2.54 | % | |||||||||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||||||||||||
| Demand deposits | 1,131,714 | 1,117,113 | 1,120,719 | ||||||||||||||||||||||||||
| Accrued interest payable and other liabilities | 64,887 | 55,032 | 63,104 | ||||||||||||||||||||||||||
| Stockholders' equity | 728,563 | 715,026 | 731,657 | ||||||||||||||||||||||||||
| Total average liabilities and stockholders' equity | $ | 6,573,914 | $ | 6,488,743 | $ | 7,297,876 | |||||||||||||||||||||||
| Net FTE interest income (non-GAAP) (5) | $ | 66,221 | $ | 64,577 | $ | 59,983 | |||||||||||||||||||||||
| Less FTE adjustments (4) | 1,062 | 1,087 | 1,597 | ||||||||||||||||||||||||||
| Net Interest Income | $ | 65,159 | $ | 63,490 | $ | 58,386 | |||||||||||||||||||||||
| Net FTE interest margin (Non-GAAP) (4)(5) | 4.37 | % | 4.37 | % | 3.52 | % | |||||||||||||||||||||||
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. | |||||||||||||||||||||||||||||
(2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate. | |||||||||||||||||||||||||||||
(3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. | |||||||||||||||||||||||||||||
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate. | |||||||||||||||||||||||||||||
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure. | |||||||||||||||||||||||||||||
(6) Includes dividend income on Federal Home Loan Bank stock | |||||||||||||||||||||||||||||
12
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
| Credit Quality | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in Thousands Except Ratios, Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | % Change | ||||||||||||||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | Q3'26 vs Q2'26 | Q3'26 vs Q3'25 | |||||||||||||||||||||||||||||||||||
| Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 19,557 | $ | 17,843 | $ | 15,761 | $ | 14,549 | $ | 12,303 | 10 | % | 59 | % | |||||||||||||||||||||||||||
| Residential Real estate | 8,737 | 8,454 | 10,607 | 10,087 | 9,256 | 3 | % | (6) | % | ||||||||||||||||||||||||||||||||
| Consumer | 5,377 | 6,004 | 8,416 | 7,821 | 7,799 | (10) | % | (31) | % | ||||||||||||||||||||||||||||||||
| Total non-accrual loans | 33,671 | 32,301 | 34,784 | 32,457 | 29,358 | 4 | % | 15 | % | ||||||||||||||||||||||||||||||||
| 90 days and greater delinquent - accruing interest | 2,256 | 2,632 | 2,211 | 2,489 | 1,608 | (14) | % | 40 | % | ||||||||||||||||||||||||||||||||
| Total non-performing loans | $ | 35,927 | $ | 34,933 | $ | 36,995 | $ | 34,946 | $ | 30,966 | 3 | % | 16 | % | |||||||||||||||||||||||||||
| Other real estate owned | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 846 | $ | 463 | $ | 594 | $ | 539 | $ | 272 | 83 | % | 211 | % | |||||||||||||||||||||||||||
| Residential Real estate | 957 | 570 | 631 | 672 | 769 | 68 | % | 24 | % | ||||||||||||||||||||||||||||||||
| Consumer | 2,647 | 3,633 | 1,875 | 480 | 480 | (27) | % | 451 | % | ||||||||||||||||||||||||||||||||
| Total other real estate owned | 4,450 | 4,666 | 3,100 | 1,691 | 1,521 | (5) | % | 193 | % | ||||||||||||||||||||||||||||||||
Other non-performing assets (1) | $ | 4,262 | $ | 4,094 | $ | 3,935 | $ | 3,991 | $ | 3,228 | 4 | % | 32 | % | |||||||||||||||||||||||||||
| Total non-performing assets | $ | 44,639 | $ | 43,693 | $ | 44,030 | $ | 40,628 | $ | 35,715 | 2 | % | 25 | % | |||||||||||||||||||||||||||
| Loan data: | |||||||||||||||||||||||||||||||||||||||||
| Accruing 30 to 89 days past due loans | $ | 21,108 | $ | 21,296 | $ | 19,379 | $ | 24,580 | $ | 24,784 | (1) | % | (15) | % | |||||||||||||||||||||||||||
| Substandard loans | 60,271 | 64,564 | 63,419 | 59,365 | 63,236 | (7) | % | (5) | % | ||||||||||||||||||||||||||||||||
| Net charge-offs (recoveries) | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 733 | $ | 295 | $ | 339 | $ | 436 | $ | 294 | 148 | % | 149 | % | |||||||||||||||||||||||||||
| Residential Real estate | 3 | 46 | 1 | (25) | 19 | (93) | % | (84) | % | ||||||||||||||||||||||||||||||||
| Consumer | 457 | 264 | 285 | 559 | 518 | 73 | % | (12) | % | ||||||||||||||||||||||||||||||||
| Total net charge-offs | $ | 1,193 | $ | 605 | $ | 625 | $ | 970 | $ | 831 | 97 | % | 44 | % | |||||||||||||||||||||||||||
| Allowance for credit losses | |||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 35,431 | $ | 36,122 | $ | 34,997 | $ | 35,473 | $ | 34,390 | (2) | % | 3 | % | |||||||||||||||||||||||||||
| Residential Real estate | 2,844 | 2,958 | 3,183 | 3,183 | 3,082 | (4) | % | (8) | % | ||||||||||||||||||||||||||||||||
| Consumer | 14,035 | 12,841 | 13,117 | 12,643 | 12,706 | 9 | % | 10 | % | ||||||||||||||||||||||||||||||||
| Total allowance for credit losses | $ | 52,310 | $ | 51,921 | $ | 51,297 | $ | 51,299 | $ | 50,178 | 1 | % | 4 | % | |||||||||||||||||||||||||||
| Credit quality ratios | |||||||||||||||||||||||||||||||||||||||||
| Non-accrual loans to HFI loans | 0.67 | % | 0.65 | % | 0.71 | % | 0.67 | % | 0.61 | % | |||||||||||||||||||||||||||||||
| Non-performing assets to total assets | 0.68 | % | 0.66 | % | 0.67 | % | 0.63 | % | 0.53 | % | |||||||||||||||||||||||||||||||
| Annualized net charge-offs of average total loans | 0.10 | % | 0.05 | % | 0.05 | % | 0.08 | % | 0.07 | % | |||||||||||||||||||||||||||||||
| Allowance for credit losses to HFI loans | 1.04 | % | 1.05 | % | 1.05 | % | 1.05 | % | 1.04 | % | |||||||||||||||||||||||||||||||
(1) Other non-performing assets consist of a single available for sale debt security placed on non-accrual status. | |||||||||||||||||||||||||||||||||||||||||
13
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
| Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin | ||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Interest income (GAAP) | (A) | $ | 91,069 | $ | 88,508 | $ | 86,651 | $ | 89,288 | $ | 92,836 | |||||||||||||||||||||
| Taxable-equivalent adjustment: | ||||||||||||||||||||||||||||||||
| Investment securities - tax exempt (1) | 683 | 686 | 676 | 665 | 1,218 | |||||||||||||||||||||||||||
| Loan receivable (2) | 379 | 402 | 381 | 390 | 379 | |||||||||||||||||||||||||||
| Interest income (non-GAAP) | (B) | 92,131 | 89,596 | 87,708 | 90,343 | 94,433 | ||||||||||||||||||||||||||
| Interest expense (GAAP) | (C) | 25,910 | 25,018 | 24,411 | 25,812 | 34,450 | ||||||||||||||||||||||||||
| Net interest income (GAAP) | (D) =(A) - (C) | $ | 65,159 | $ | 63,490 | $ | 62,240 | $ | 63,476 | $ | 58,386 | |||||||||||||||||||||
| Net FTE interest income (non-GAAP) | (E) = (B) - (C) | $ | 66,221 | $ | 64,578 | $ | 63,297 | $ | 64,531 | $ | 59,983 | |||||||||||||||||||||
| Average interest earning assets | (F) | 6,014,488 | 5,932,818 | 5,984,972 | 5,967,328 | 6,766,742 | ||||||||||||||||||||||||||
| Net FTE interest margin (non-GAAP) | (G) = (E*) / (F) | 4.37 | % | 4.37 | % | 4.29 | % | 4.29 | % | 3.52 | % | |||||||||||||||||||||
(1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity | ||||||||||||||||||||||||||||||||
(2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment | ||||||||||||||||||||||||||||||||
| *Annualized | ||||||||||||||||||||||||||||||||
| Non–GAAP Reconciliation of Return on Average Tangible Common Equity | ||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Net income (loss) (GAAP) | (A) | $ | 28,667 | $ | 24,908 | $ | 26,168 | $ | 26,921 | $ | (221,990) | |||||||||||||||||||||
| Average stockholders' equity | (B) | $ | 728,563 | $ | 715,026 | $ | 707,916 | $ | 679,821 | $ | 731,657 | |||||||||||||||||||||
| Average intangible assets | (C) | 160,809 | 161,471 | 162,148 | 162,838 | 163,552 | ||||||||||||||||||||||||||
| Average tangible equity (Non-GAAP) | (D) = (B) - (C) | $ | 567,754 | $ | 553,555 | $ | 545,768 | $ | 516,983 | $ | 568,105 | |||||||||||||||||||||
| Return on average tangible common equity ("ROACE") (non-GAAP) | (E) = (A*) / (D) | 20.03 | % | 18.05 | % | 19.02 | % | 20.66 | % | (155.03) | % | |||||||||||||||||||||
| *Annualized | ||||||||||||||||||||||||||||||||
| Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets | ||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Total stockholders' equity (GAAP) | (A) | $ | 699,303 | $ | 726,189 | $ | 699,027 | $ | 688,251 | $ | 660,771 | |||||||||||||||||||||
| Intangible assets (end of period) | (B) | 160,421 | 161,041 | 161,716 | 162,391 | 163,097 | ||||||||||||||||||||||||||
| Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 538,882 | $ | 565,148 | $ | 537,311 | $ | 525,860 | $ | 497,674 | |||||||||||||||||||||
| Total assets (GAAP) | (D) | $ | 6,591,145 | $ | 6,574,160 | $ | 6,564,216 | $ | 6,436,612 | $ | 6,712,497 | |||||||||||||||||||||
| Intangible assets (end of period) | (B) | 160,421 | 161,041 | 161,716 | 162,391 | 163,097 | ||||||||||||||||||||||||||
| Total tangible assets (non-GAAP) | (E) = (D) - (B) | $ | 6,430,724 | $ | 6,413,119 | $ | 6,402,500 | $ | 6,274,221 | $ | 6,549,400 | |||||||||||||||||||||
| Tangible common equity to tangible assets (Non-GAAP) | (G) = (C) / (E) | 8.38 | % | 8.81 | % | 8.39 | % | 8.38 | % | 7.60 | % | |||||||||||||||||||||
14
Horizon Bancorp, Inc. Reports Third Quarter 2026 Results
| Non–GAAP Reconciliation of Tangible Book Value Per Share | ||||||||||||||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Total stockholders' equity (GAAP) | (A) | $ | 699,303 | $ | 726,189 | $ | 699,027 | $ | 688,251 | $ | 660,771 | |||||||||||||||||||||
| Intangible assets (end of period) | (B) | 160,421 | 161,041 | 161,716 | 162,391 | 163,097 | ||||||||||||||||||||||||||
| Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 538,882 | $ | 565,148 | $ | 537,311 | $ | 525,860 | $ | 497,674 | |||||||||||||||||||||
| Common shares outstanding | (D) | 51,110,798 | 51,093,048 | 51,056,888 | 50,978,030 | 50,970,530 | ||||||||||||||||||||||||||
| Tangible book value per common share (non-GAAP) | (E) = (C) / (D) | $ | 10.54 | $ | 11.06 | $ | 10.52 | $ | 10.32 | $ | 9.76 | |||||||||||||||||||||
15
Third Quarter 2026 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 ) Third Quarter Ended September 30, 2026 October 22, 2026
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 Q3 2026 Key Performance Metrics • ROA: 1.73%. Industry leading profitability though a relationship based, community banking model. • ROTCE*: 20.03%. Driving consistent top-tier internal capital generation. • NIM*: 4.37%. Stability in performance from a well-positioned balance sheet that can successfully navigate interest rate volatility. Capital • Solid growth of 44 bps in CET1 to 11.53%, up from 11.09% in 2Q26. • Total risk-based capital of 15.48% in 3Q26 compared to 15.02% in 2Q26. Balance Sheet Advancement • Year-to-date, Loans and Deposits are growing at planned mid-single digit growth rates. • Loans Held for Investment (HFI**) have grown by $129 million, or 3.5% annualized, with balanced growth from both Commercial and Consumer Loans. • Total deposits have grown by $206 million, or 5.2% annualized, driven by non-maturity deposit growth of $228 million, or 7.3% annualized. Asset Quality • Excellent credit performance. Third quarter net charge offs at 0.10% annualized. YTD 2026 performance at 0.07% annualized • Stable and 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 **Total Gross Loans Held for Investment (HFI), excludes Loans Held for Sale (HFS)
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 HFI* $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 HFI* up $47 million, or 3.7% LQA • Loan Growth spread across Commercial, Residential Real Estate and Consumer Loans • Commercial balances increased $12 million, driven by the C&I segment. • Commercial Real Estate declined slightly, driven by higher than average payoffs for the quarter. • Mortgage loans increased $17 million, or 8% LQA, and Consumer balances increased $18 million, or 10% LQA. • 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 1.4% LQA • Quarter end balances up $12 million. • Grand Rapids, Midland and Lansing, MI and Lake County and Fort Wayne, IN markets were significant contributors to the linked quarter growth. • Growth in Commercial and Industrial complimented by equipment finance. • Well balanced geographies, product mix and industry • Favorable Q3 new origination mix, with approximately 40% C&I. • No segment exceeds 6.4% of total loans. Data represents total loans HFI as of MRQ unless stated otherwise 5 27% 21% 13% 15% 9% 10% 5% Central Indiana West Michigan Southwest Michigan Northern Indiana Northern Michigan East Michigan Other $m illi on s Commercial Loans (period end) $3,357 $3,433 $3,467 $3,530 $3,542 $47 $53 $55 $63 $65 $990 $1,011 $1,023 $1,085 $1,107 $709 $699 $718 $740 $715 $1,611 $1,669 $1,670 $1,643 $1,655 Other* C&I CRE (owner occ.) CRE (non-owner occ.) 3Q25 4Q25 1Q26 2Q26 3Q26 Geography $3.5B MRQ end 47% 20% 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. • Growth in Mortgage loans of $16.5 million, or 8% LQA, from momentum in Q3 driven by recent strategic hiring and elevated pipelines. • Management continues to maintain strong spreads in mortgages despite the increase in Treasury rates. • Consumer balances increased $18.2 million, or 10% LQA. 6Data represents total loans HFI as of MRQ unless stated otherwise HOME EQUITY MORTGAGE CREDIT SCORE 757 760 DEBT-TO-INCOME 32% 35% LOAN-TO-VALUE 66% 68% 53%41% 7% Mortgage Home Equity Other Consumer Loans Mix $1.5B MRQ end $m illi on s Consumer and Residential Loans (period end) $1,467 $1,444 $1,412 $1,429 $1,464 $784 $772 $750 $756 $772 $683 $672 $662 $673 $691 Residential Consumer 3Q25 4Q25 1Q26 2Q26 3Q26
Strong Asset Quality Metrics 7*Includes all substandard loans and commercial and consumer non-performing loans $m illi on s Substandard Loans* (period end) $63.2 $59.4 $63.4 $64.6 $60.3 1.31% 1.22% 1.30% 1.30% 1.20% Substandard Loans Substandard Loans / Loans HFI 3Q25 4Q25 1Q26 2Q26 3Q26 $m illi on s Non-Performing Loans (period end) $31.0 $34.9 $37.0 $34.9 $35.9 0.64% 0.72% 0.76% 0.70% 0.72% Commercial Resi Real Estate Consumer NPLs / Loans HFI 3Q25 4Q25 1Q26 2Q26 3Q26 $m illi on s Net Charge Offs $0.9 $1.0 $0.6 $0.6 $1.2 0.07% 0.08% 0.05% 0.05% 0.10% Commercial Resi Real Estate Consumer Annualized NCOs/ Av. Loans 3Q25 4Q25 1Q26 2Q26 3Q26 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 10 bps annualized remain low, and compare favorably to UBPR Peer group(1). • Early stage delinquencies remain low, and well controlled at 0.42%(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 Q2 2026 (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 $81 million, or 6% LQA, with total deposits of $206 million year-to-date, or 5% annualized. • Robust growth in interest bearing non-maturity deposits of $96 million, or 12% LQA, while non-interest bearing deposits grew $9 million, or 3% LQA. • Time deposits decreased by $24 million, as management elected not to renew certain higher-cost funds. • Year to date growth remains consistent with mid-single-digit full year growth expectations. • Deposit Costs • Total deposit costs, inclusive of non-interest bearing balances, increased by 3 bps from the prior quarter, reflective of ongoing relationship-based deposit gathering efforts. Interest bearing deposit costs increased by a modest 4 bps. • Portfolio continues to be well positioned to provide stability to margin outlook for the remainder of 2026. $m illi on s Highly Valued, Community Bank Deposit Portfolio 20.3% 20.4% 21.0% 20.4% 20.2% 58.0% 58.6% 57.5% 59.3% 60.1% 21.7% 20.9% 21.5% 20.4% 19.7% Non-Int Bearing% Interest Bearing% Time% 3Q25 4Q25 1Q26 2Q26 3Q26 $1,123 $3,198 $1,200 $1,079 $3,094 $1,102 $1,164 $3,119 $1,139 $1,104 $3,196 $1,100 $1,080 $3,292 $1,109 2.25% IB Deposit Cost 1.98% IB Deposit Cost
Net Interest Margin Expansion * Net Fully-Taxable Equivalent Interest Margin is a Non-GAAP measure. 9 Net Interest Margin 2.97% 3.04% 3.23% 3.52% 4.29% 4.29% 4.37% 4.37% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 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 • Q3 FTE NIM* remained unchanged from the prior quarter, at 4.37%, despite an increase in average interest-bearing cash. • Strong loan origination pricing, coupled with favorable re-pricing dynamics during the quarter contributed to the increase in the average rate on loans by 4 bps, which compared favorably to the 3 bps increase in total deposit costs.
H I G H L I G H T S & D E V E L O P M E N T S • Stable & diversified non-interest income streams continue to perform well, with year-over-year growth driven by Mortgage related income and Fiduciary activities. • 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 • Non-interest expense levels continue to remain stable from a disciplined focus on staffing models and outside professional services expenses. • For Q3, absent the legal expense of $3.1 million in the Q2 2026 results, decreases in FDIC insurance expense and data processing expenses were partially offset by a normalization of professional fees in the current quarter. All other components of non-interest expense remained relatively stable quarter over quarter. Non-Interest Expense $52.9 $40.6 $40.7 $43.8 $41.5 $22.7 $21.9 $23.2 $24.2 $24.2 $17.5 $18.7 $17.5 $19.6 $17.3 $12.7 Salaries & Employee Benefits All Other Non-Interest Expense FHLB Prepayment Penalty 3Q25 4Q25 1Q26 2Q26 3Q26
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* 8.38% 8.39% 8.81% 8.38% $10.32 $10.52 $11.06 $10.54 4Q25 1Q26 2Q26 3Q26 Leverage Ratio 9.55% 9.84% 10.17% 10.37% 4Q25 1Q26 2Q26 3Q26** CET 1 Ratio 10.42% 10.81% 11.09% 11.53% 4Q25 1Q26 2Q26 3Q26** Total RBC Ratio 14.36% 14.76% 15.02% 15.48% 4Q25 1Q26 2Q26 3Q26**
2026 Guidance Summary Loans (HFI) • Full-year period-end total loans HFI to grow mid-single-digits • Led by consistent high-quality commercial loans Deposits & Funding • Full-year 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 • Q4 Non-FTE net interest income in the range of $66 - 67 million • Q4 FTE NIM to show continued modest expansion • Assumes one additional 25 basis point hike in early December 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 • Q4 effective tax rate in the 18.0% - 19.0% 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 6.4% of loans ◦ No major metros outside Indiana and Michigan, other than Columbus, OH ◦ Zero rent regulated/stabilized originated or in portfolio ◦ $2.2 million average loan size • Non-owner-occupied office represents 4.0% of total loans ◦ All in Indiana and Michigan ◦ $1.6 million average loan size • Nursing Home and Assisted Living Facilities represents 2.5% 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 September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Interest income (GAAP) (A) $ 91,069 $ 88,508 $ 86,651 $ 89,288 $ 92,836 Taxable-equivalent adjustment: Investment securities - tax exempt (1) 683 686 676 665 1,218 Loan receivable (2) 379 402 381 390 379 Interest income (non-GAAP) (B) $ 92,131 $ 89,596 $ 87,708 $ 90,343 $ 94,433 Interest expense (GAAP) (C) 25,910 25,018 24,411 25,812 34,450 Net interest income (GAAP) (D) =(A) - (C) $ 65,159 $ 63,490 $ 62,240 $ 63,476 $ 58,386 Net FTE interest income (non-GAAP) (E) = (B) - (C) $ 66,221 $ 64,578 $ 63,297 $ 64,531 $ 59,983 Average interest earning assets (F) $ 6,014,488 $ 5,932,818 $ 5,984,972 $ 5,967,328 $ 6,766,742 Net FTE interest margin (non-GAAP) (G) = (E*) / (F) 4.37 % 4.37 % 4.29 % 4.29 % 3.52 % (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment *Annualized Non–GAAP Reconciliation of 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 September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Net income (loss) (GAAP) (A) $ 28,667 $ 24,908 $ 26,168 $ 26,921 $ (221,990) Average stockholders' equity (B) $ 728,563 $ 715,026 $ 707,916 $ 679,821 $ 731,657 Average intangible assets (C) 160,809 161,471 162,148 162,838 163,552 Average tangible equity (Non-GAAP) (D) = (B) - (C) $ 567,754 $ 553,555 $ 545,768 $ 516,983 $ 568,105 Return on average tangible common equity ("ROACE") (non-GAAP) (E) = (A*) / (D) 20.03 % 18.05 % 19.02 % 20.66 % (155.03) % *Annualized
Non-GAAP Reconciliation 19 Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Total stockholders' equity (GAAP) (A) $ 699,303 $ 726,189 $ 699,027 $ 688,251 $ 660,771 Intangible assets (end of period) (B) 160,421 161,041 161,716 162,391 163,097 Total tangible common equity (non-GAAP) (C) = (A) - (B) $ 538,882 $ 565,148 $ 537,311 $ 525,860 $ 497,674 Total assets (GAAP) (D) 6,591,145 6,574,160 6,564,216 6,436,612 6,712,497 Intangible assets (end of period) (B) 160,421 161,041 161,716 162,391 163,097 Total tangible assets (non-GAAP) (E) = (D) - (B) $ 6,430,724 $ 6,413,119 $ 6,402,500 $ 6,274,221 $ 6,549,400 Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E) 8.38 % 8.81 % 8.39 % 8.38 % 7.60 % Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets (Dollars in Thousands. Unaudited)
Non-GAAP Reconciliation 20 Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Total stockholders' equity (GAAP) (A) $ 699,303 $ 726,189 $ 699,027 $ 688,251 $ 660,771 Intangible assets (end of period) (B) 160,421 161,041 161,716 162,391 163,097 Total tangible common equity (non-GAAP) (C) = (A) - (B) $ 538,882 $ 565,148 $ 537,311 $ 525,860 $ 497,674 Common shares outstanding (D) 51,110,798 51,093,048 51,056,888 50,978,030 50,970,530 Tangible book value per common share (non-GAAP) (E) = (C) / (D) $ 10.54 $ 11.06 $ 10.52 $ 10.32 $ 9.76 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