Horizon Bancorp, Inc. Reports Positive Fourth Quarter 2025 Results, Entering 2026 with Peer Leading Performance Metrics

1/21/26 4:05:00 PM ET

Major Banks

Finance

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MICHIGAN CITY, Ind., Jan. 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 December 31, 2025.

"Horizon's fourth quarter results demonstrate excellent execution of the balance sheet repositioning and the core strength of our community banking model. We have delivered on our commitment to shareholders to create a top performing community bank with durable, peer-leading performance metrics and shareholder returns. The fourth quarter exceeded our prior performance estimates, with annualized return on average assets exceeding 1.60%, returns on average equity approaching 16%, and a net interest margin of 4.29%. We are pleased with the results for our shareholders and the transparency the quarter provided to highlight the strength of Horizon's community banking model, which remains the cornerstone of our value proposition", President and CEO, Thomas Prame stated. "More importantly, the Company is kicking off the new year from a position of strength, with the franchise well positioned to deliver durable earnings and continued top-tier profitability metrics in 2026. The commercial loan engine continues to produce disciplined and high-quality growth, which we expect to fund through our client-focused branch distribution network and our relationship-based community bankers. Credit quality remains excellent, and expenses continue to be well managed. As we look ahead, we will remain focused on creating sustainable long-term value for our shareholders through our disciplined operating model, consistent profitable growth and peer leading capital generation".

Net income for the three months ended December 31, 2025 was $26.9 million, or $0.53 per diluted share, compared to a net loss of $222.0 million, or $(4.69), for the third quarter of 2025 and a net loss of $10.9 million, or $(0.25) per diluted share, for the fourth quarter of 2024.

Net loss for the twelve months ended December 31, 2025 was $150.5 million, or $(3.24) per diluted share, compared to net income of $35.4 million, or $0.80, for the twelve months ended December 31, 2024.

Fourth Quarter 2025 Highlights

Strong performance of the core community banking model, combined with the successful completion of the balance sheet repositioning efforts, resulted in significant performance improvement for the quarter. The Company's return on average assets and return on average equity improved to 1.63% and 15.71%, respectively. The franchise is well positioned to continue to achieve top performance metrics moving forward.

Net interest income of $63.5 million increased 8.7% compared with $58.4 million for the three months ended September 30, 2025, and 19.5% compared with $53.1 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis¹, expanded for the ninth consecutive quarter, to 4.29%, compared with 3.52% for the three months ended September 30, 2025 and 2.97% for the three months ended December 31, 2024.

Total loans held for investment ("HFI") increased 4.4% compared to the linked quarter annualized, with strong organic commercial loan growth of $75.8 million, or 9.1% annualized. Loan pipelines continue to be consistent, reflective of Horizon's attractive markets and embedded community banking model.

Funding remains durable with costs trending favorably. Non-interest bearing deposits remained relatively flat, while declines in interest-bearing balances largely reflected the communicated planned exit of high-cost, transactional deposits. Total interest-bearing liability cost performed well, decreasing by another 34 bps during the quarter.

Credit quality remained strong, with annualized net charge offs of 0.08% of average loans during the fourth quarter. Non-performing assets remain well within expected ranges, with non-performing assets to total assets of 63 bps for the fourth quarter.

Expenses continued to be well managed, and were comparable to the third quarter when considering a select few items related to the balance sheet activities, displaying management's continued commitment to generate positive operating leverage through a more efficient expense base.

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

	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
Income statement:
Net interest income	$	63,476		$	58,386		$	55,355		$	52,267		$	53,127
Provision for credit losses		1,630			(3,572	)		2,462			1,376			1,171
Non-interest income (loss)		11,463			(295,334	)		10,920			16,499			(28,954	)
Non-interest expense		40,615			52,952			39,417			39,306			44,935
Income tax expense (benefit)		5,773			(64,338	)		3,752			4,141			(11,051	)
Net Income (Loss)	$	26,921		$	(221,990	)	$	20,644		$	23,943		$	(10,882	)

Per share data:
Basic earnings (loss) per share	$	0.53		$	(4.69	)	$	0.47		$	0.55		$	(0.25	)
Diluted earnings (loss) per share		0.53			(4.69	)		0.47			0.54			(0.25	)
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		13.50			12.96			18.06			17.72			17.46
Market value - high		18.47			16.88			15.88			17.76			18.76
Market value - low		15.04			15.01			12.92			15.00			14.57
Weighted average shares outstanding - Basic		50,975,693			47,311,642			43,794,490			43,777,109			43,721,211
Weighted average shares outstanding - Diluted		51,277,134			47,311,642			44,034,663			43,954,164			43,721,211
Common shares outstanding (end of period)		50,978,030			50,970,530			43,801,507			43,785,932			43,722,086

Key ratios:
Return on average assets		1.63	%		(12.07	)%		1.09	%		1.25	%		(0.56	)%
Return on average stockholders' equity		15.71			(120.37	)		10.49			12.44			(5.73	)
Total equity to total assets		10.69			9.84			10.34			10.18			9.79
Total loans to deposit ratio		92.62			87.41			87.52			85.21			87.75
Allowance for credit losses to HFI loans		1.05			1.04			1.09			1.07			1.07
Annualized net charge-offs of average total loans⁽¹⁾		0.08			0.07			0.02			0.07			0.05
Efficiency ratio		54.20			(22.35	)		59.47			57.16			185.89

Key metrics (Non-GAAP)⁽²⁾
Net FTE interest margin		4.29	%		3.52	%		3.23	%		3.04	%		2.97	%
Return on average tangible common equity		20.66			(155.03	)		13.24			15.79			(7.35	)
Tangible common equity to tangible assets		8.38			7.60			8.37			8.19			7.83
Tangible book value per common share	$	10.32		$	9.76		$	14.32		$	13.96		$	13.68


⁽¹⁾Average total loans includes loans held for investment and held for sale.
⁽²⁾Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $63.5 million in the fourth quarter of 2025, compared to $58.4 million in the third quarter of 2025, driven by the continued expansion of the Company's net FTE interest margin¹, which increased to 4.29% for the fourth quarter of 2025, compared to 3.52% for the third quarter of 2025. The margin saw continued expansion as a by product of the balance sheet repositioning, stronger realized deposit betas relative to recent reductions in short-term interest rates and relatively stable overall earning asset yields since affecting the balance sheet actions in late August.

Provision for Credit Losses

During the fourth quarter of 2025, the Company recorded a provision for credit losses of $1.6 million. This compares to a recorded benefit for credit losses of $3.6 million during the third quarter of 2025, and a provision for credit losses expense of $1.2 million during the fourth quarter of 2024. The increase in the provision for credit losses during the fourth quarter of 2025 when compared with the third quarter of 2025 was primarily attributable to the release of approximately $3.1 million in total Allowance against the sold portion of the Indirect Auto portfolio and the release of the $0.2 million reserve against the previous Held-To-Maturity investment portfolio in the third quarter, which did not recur in the fourth quarter. Additionally, the Provision increased primarily due to changes in the baseline economic outlook.

For the fourth quarter of 2025, Net Charge-Offs were $1.0 million, or an annualized 0.08% of average loans outstanding, compared to Net Charge-Offs of $0.8 million, or an annualized 0.07% of average loans outstanding for the third quarter of 2025, and Net Charge-Offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the fourth quarter of 2024.

The Company's Allowance for Credit Losses as a percentage of period-end loans HFI was 1.05% at December 31, 2025, compared to 1.04% at September 30, 2025 and 1.07% at December 31, 2024.

Non-Interest Income

For the Quarter Ended	December 31,		September 30,			June 30		March 31,			December 31,
(Dollars in Thousands)		2025		2025			2025		2025			2024
Non-interest (Loss) Income
Service charges on deposit accounts	$	3,341	$	3,474		$	3,208	$	3,208		$	3,276
Wire transfer fees		66		71			69		71			124
Interchange fees		3,445		3,510			3,403		3,241			3,353
Fiduciary activities		1,560		1,363			1,251		1,326			1,313
Gain (loss) on sale of investment securities		1		(299,132	)		—		(407	)		(39,140	)
Gain on sale of mortgage loans		1,296		1,208			1,219		1,076			1,071
Mortgage servicing income net of impairment		352		351			375		385			376
Increase in cash value of bank owned life insurance		360		379			346		335			335
Other income (loss)		1,042		(6,558	)		1,049		7,264			338
Total non-interest (loss) income	$	11,463	$	(295,334	)	$	10,920	$	16,499		$	(28,954	)

Total Non-Interest Income was $11.5 million in the fourth quarter of 2025, compared to Non-Interest (Loss) of $295.3 million in the third quarter of 2025. The increase in Non-Interest Income of $306.8 million is due to the $299.1 million loss on the sale investment securities and the pre-tax loss of $7.7 million on the sale of the Company's Indirect Auto portfolio, both of which were related to the balance sheet repositioning efforts during the third quarter, which did not recur. Other categories remained relatively unchanged when compared with the prior period.

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

Non-Interest Expense

For the Quarter Ended	December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars in Thousands)		2025		2025		2025		2025		2024
Non-interest Expense
Salaries and employee benefits	$	21,895	$	22,698	$	22,731	$	22,414	$	25,564
Net occupancy expenses		3,718		3,321		3,127		3,702		3,431
Data processing		3,128		2,933		2,951		2,872		2,841
Professional fees		1,083		808		735		826		736
Outside services and consultants		3,035		3,844		3,278		3,265		4,470
Loan expense		1,183		1,237		1,231		689		1,285
FDIC insurance expense		1,251		1,345		1,216		1,288		1,193
Core deposit intangible amortization		706		706		816		816		843
Merger related expenses		—		—		—		305		—
Prepayment penalties		—		12,680		—		—		—
Other losses		732		131		245		228		371
Other expense		3,884		3,249		3,087		2,901		4,201
Total non-interest expense	$	40,615	$	52,952	$	39,417	$	39,306	$	44,935

Total Non-Interest Expense was $40.6 million in the fourth quarter of 2025, compared with $53.0 million in the third quarter of 2025. The decrease in Non-Interest Expense during the fourth quarter of 2025 when compared with the prior period was primarily driven by a $12.7 million prepayment penalty related to the payoff of $700 million in FHLB advances during the third quarter, which did not recur. The increase in Other Losses was the result of the write off of unamortized issuance costs of $0.7 million related to the early redemption of the Company's subordinated notes due 2030. Apart from this specific item, expenses were relatively unchanged from the prior quarter, with declines in personnel expense offset by higher seasonal occupancy expenses, marketing expense and higher professional expense from legal fees to settle certain legacy items.

Income Taxes

Horizon recorded a net tax expense of $5.8 million for the fourth quarter of 2025, resulting in an effective tax rate of 17.7%, which is consistent with the Company's estimated annual effective tax rate.

Balance Sheet Highlights

Total assets decreased by $275.9 million, or 4.1%, to $6.4 billion as of December 31, 2025, from $6.7 billion as of September 30, 2025. The decrease in total assets is primarily due to the decrease in interest earning deposits of $309.2 million, a decrease in other assets of $10.8 million, a decrease in cash of $9.6 million, and a decrease in total investment securities of $4.5 million. Total loans were $4.9 billion at December 31, 2025, an increase of $60.7 million from September 30, 2025 balances, primarily driven by organic commercial loan growth.

Total deposits decreased by $245.5 million, or 4.4%, to $5.3 billion as of December 31, 2025 when compared to balances as of September 30, 2025, which is largely attributable to the intentional runoff of another $195 million in higher-cost transactional deposit balances. The decrease also was driven by a decrease in time deposits of $97.2 million, a decrease of interest bearing deposits of $75.6 million, and a decrease in savings and money market deposits of $28.5 million. Non-interest bearing deposit balances decreased $44.2 million in the current period, which is largely attributable to seasonal trends, but increased from the year ago period. Subordinated notes balances decreased by $55.8 million during the quarter related to the early redemption of the Company's subordinated notes due 2030, as previously planned.

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 December 31, 2025:

For the Quarter Ended	December 31,		September 30,		June 30,		March 31,
	2025*		2025		2025		2025
Consolidated Capital Ratios
Total capital (to risk-weighted assets)	14.37	%	15.00	%	14.44	%	14.26	%
Tier 1 capital (to risk-weighted assets)	11.52		11.27		12.48		12.33
Common equity tier 1 capital (to risk-weighted assets)	10.43		10.17		11.48		11.32
Tier 1 capital (to average assets)	9.57		8.22		9.59		9.25
*Preliminary estimate - may be subject to change

As of December 31, 2025, the ratio of total stockholders' equity to total assets is 10.69%. Book value per common share was $13.50, increasing $0.54 during the fourth quarter of 2025.

Tangible common equity¹ totaled $525.9 million at December 31, 2025, and the ratio of tangible common equity to tangible assets¹ was 8.38% at December 31, 2025, up from 7.60% at September 30, 2025. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $10.32, increasing $0.56 during the fourth quarter of 2025.

Credit Quality

As of December 31, 2025, total non-accrual loans increased by $3.1 million from September 30, 2025, to 0.67% of total loans HFI. Total non-performing assets increased $4.9 million, to $40.6 million, compared to $35.7 million as of September 30, 2025. The ratio of non-performing assets to total assets was 0.63%, compared to 0.53% as of September 30, 2025.

For the quarter ended December 31, 2025, net charge-offs were $1.0 million, compared to $0.8 million as of September 30, 2025, or 0.08% annualized of average loans.

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

Earnings Conference Call

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

Participants may access the live conference call on January 22, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from 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 January 30, 2026. The replay may be accessed by dialing 855-669-9658 from the United States and Canada, or 1–412–317-0088 from other international locations, and entering the access code 1841881.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.4 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

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

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, "Horizon"). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the "SEC"). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, changes within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, inflation levels, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon's assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, and the effects of foreign and military policies of the U.S. government; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon's reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC's website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	December 31,		September 30,			June 30,		March 31,			December 31,
		2025		2025			2025		2025			2024
Interest Income
Loans receivable	$	77,238	$	79,561		$	78,618	$	74,457		$	76,747
Investment securities - taxable		7,688		6,631			5,941		6,039			6,814
Investment securities - tax-exempt		2,498		4,581			6,088		6,192			6,301
Other		1,864		2,063			830		2,487			3,488
Total interest income		89,288		92,836			91,477		89,175			93,350
Interest Expense
Deposits		21,228		25,726			26,052		25,601			27,818
Borrowed funds		1,749		5,924			8,171		9,188			10,656
Subordinated notes		1,811		1,731			829		829			829
Junior subordinated debentures issued to capital trusts		1,024		1,069			1,070		1,290			920
Total interest expense		25,812		34,450			36,122		36,908			40,223
Net Interest Income		63,476		58,386			55,355		52,267			53,127
Provision for credit losses		1,630		(3,572	)		2,462		1,376			1,171
Net Interest Income after Provision for Credit Losses		61,846		61,958			52,893		50,891			51,956
Non-interest Income
Service charges on deposit accounts		3,341		3,474			3,208		3,208			3,276
Wire transfer fees		66		71			69		71			124
Interchange fees		3,445		3,510			3,403		3,241			3,353
Fiduciary activities		1,560		1,363			1,251		1,326			1,313
Gain (loss) on sale of investment securities		1		(299,132	)		—		(407	)		(39,140	)
Gain on sale of mortgage loans		1,296		1,208			1,219		1,076			1,071
Mortgage servicing income net of impairment		352		351			375		385			376
Increase in cash value of bank owned life insurance		360		379			346		335			335
Other income (loss)		1,042		(6,558	)		1,049		7,264			338
Total non-interest income (loss)		11,463		(295,334	)		10,920		16,499			(28,954	)
Non-interest Expense
Salaries and employee benefits		21,895		22,698			22,731		22,414			25,564
Net occupancy expenses		3,718		3,321			3,127		3,702			3,431
Data processing		3,128		2,933			2,951		2,872			2,841
Professional fees		1,083		808			735		826			736
Outside services and consultants		3,035		3,844			3,278		3,265			4,470
Loan expense		1,183		1,237			1,231		689			1,285
FDIC insurance expense		1,251		1,345			1,216		1,288			1,193
Core deposit intangible amortization		706		706			816		816			843
Merger related expenses		—		—			—		305			—
Prepayment penalties		—		12,680			—		—			—
Other losses		732		131			245		228			371
Other expense		3,884		3,249			3,087		2,901			4,201
Total non-interest expense		40,615		52,953			39,417		39,306			44,935
Income (Loss) Before Income Taxes		32,694		(286,328	)		24,396		28,084			(21,933	)
Income tax expense (benefit)		5,773		(64,338	)		3,752		4,141			(11,051	)
Net Income (Loss)	$	26,921	$	(221,990	)	$	20,644	$	23,943		$	(10,882	)
Basic Earnings (Loss) Per Share	$	0.53	$	(4.69	)	$	0.47	$	0.55		$	(0.25	)
Diluted Earnings (Loss) Per Share		0.53		(4.69	)		0.47		0.54			(0.25	)

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
Assets
Interest earning assets
Federal funds sold	$	—		$	—		$	2,024		$	—		$	—
Interest earning deposits		72,646			381,860			34,174			80,023			201,131
Interest earning time deposits		—			—			—			—			735
Federal Home Loan Bank stock		45,713			45,713			45,412			45,412			53,826
Investment securities, held for trading		3,883			598			—			—			—
Investment securities, available for sale		875,414			883,242			231,999			231,431			233,677
Investment securities, held to maturity		—			—			1,819,087			1,843,851			1,867,690
Loans held for sale		9,778			1,921			2,994			3,253			67,597
Gross loans held for investment (HFI)		4,876,542			4,823,669			4,985,582			4,909,815			4,847,040
Total Interest earning assets		5,883,976			6,137,003			7,121,272			7,113,784			7,271,696
Non-interest earning assets
Allowance for credit losses		(51,299	)		(50,178	)		(54,399	)		(52,654	)		(51,980	)
Cash		66,813			76,395			101,719			89,643			92,300
Cash value of life insurance		36,732			37,762			37,755			37,409			37,450
Other assets		215,460			226,247			148,773			143,675			152,635
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		7,180			7,886			8,592			9,407			10,223
Premises and equipment, net		92,805			93,413			93,398			93,499			93,864
Interest receivable		29,733			28,758			39,730			38,663			39,747
Total non-interest earning assets		552,635			575,494			530,779			514,855			529,450
Total assets	$	6,436,611		$	6,712,497		$	7,652,051		$	7,628,639		$	7,801,146
Liabilities
Savings and money market deposits	$	3,094,231		$	3,198,332		$	3,385,413		$	3,393,371		$	3,446,681
Time deposits		1,102,478			1,199,681			1,193,180			1,245,088			1,089,153
Borrowings		160,118			160,206			880,336			812,218			1,142,340
Repurchase agreements		88,468			86,966			95,089			87,851			89,912
Subordinated notes		98,215			154,011			55,807			55,772			55,738
Junior subordinated debentures issued to capital trusts		57,688			57,636			57,583			57,531			57,477
Total interest earning liabilities		4,601,198			4,856,832			5,667,408			5,651,832			5,881,301
Non-interest bearing deposits		1,078,708			1,122,888			1,121,163			1,127,324			1,064,818
Interest payable		12,892			12,395			14,007			11,441			11,137
Other liabilities		55,562			59,611			58,621			61,981			80,308
Total liabilities		5,748,360			6,051,726			6,861,199			6,852,578			7,037,564
Stockholders' Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		459,243			458,734			360,758			360,522			363,761
Retained earnings		255,004			236,312			466,497			452,945			436,122
Accumulated other comprehensive (loss)		(25,996	)		(34,275	)		(36,403	)		(37,406	)		(36,301	)
Total stockholders' equity		688,251			660,771			790,852			776,061			763,582
Total liabilities and stockholders' equity	$	6,436,611		$	6,712,497		$	7,652,051		$	7,628,639		$	7,801,146

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	December 31,		September 30,		June 30,		March 31,		December 31,		% Change
		2025		2025		2025		2025		2024	Q4'25 vs Q3'25		Q4'25 vs Q4'24
Loans:
Commercial real estate	$	2,421,863	$	2,366,956	$	2,321,951	$	2,262,910	$	2,202,858	2	%	10	%
Commercial & Industrial		1,010,545		989,609		976,740		918,541		875,297	2	%	15	%
Total commercial		3,432,408		3,356,565		3,298,691		3,181,451		3,078,155	2	%	12	%
Residential Real estate		772,427		783,850		786,026		801,726		802,909	(1	)%	(4	)%
Mortgage warehouse		—		—		—		—		—	—	%	—	%
Consumer		671,707		683,254		900,865		926,638		965,976	(2	)%	(30	)%
Total loans held for investment		4,876,542		4,823,669		4,985,582		4,909,815		4,847,040	1	%	1	%
Loans held for sale		9,778		1,921		2,994		3,253		67,597	409	%	(86	)%
Total loans	$	4,886,320	$	4,825,590	$	4,988,576	$	4,913,068	$	4,914,637	1	%	(1	)%

Deposits:
Interest bearing deposits	$	1,639,857	$	1,715,471	$	1,713,058	$	1,713,991	$	1,767,983	(4	)%	(7	)%
Savings and money market deposits		1,454,374		1,482,861		1,672,355		1,679,380		1,678,697	(2	)%	(13	)%
Time deposits		1,102,478		1,199,681		1,193,180		1,245,088		1,089,153	(8	)%	1	%
Total Interest bearing deposits		4,196,709		4,398,013		4,578,593		4,638,459		4,535,833	(5	)%	(7	)%
Non-interest bearing deposits
Non-interest bearing deposits		1,078,708		1,122,888		1,121,164		1,127,324		1,064,819	(4	)%	1	%
Total deposits	$	5,275,417	$	5,520,901	$	5,699,757	$	5,765,784	$	5,600,652	(4	)%	(6	)%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	December 31, 2025							September 30, 2025							December 31, 2024
	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)	$	182,017		$	1,866	4.07	%	$	185,665		$	2,062	4.41	%	$	290,693		$	3,488	4.77	%
Federal Home Loan Bank stock		45,713			616	5.35	%		45,549			862	7.51	%		53,826			1,516	11.20	%
Investment securities - taxable (1)		570,786			7,687	5.34	%		792,829			5,769	2.89	%		1,079,377			5,298	1.95	%
Investment securities - non-taxable (1)		312,988			2,546	3.23	%		763,488			5,799	3.01	%		1,129,622			7,976	2.81	%
Total investment securities		883,774			10,233	4.59	%		1,556,317			11,568	2.95	%		2,208,999			13,274	2.39	%
Loans receivable (2) (3)		4,855,824			77,628	6.34	%		4,979,211			79,941	6.37	%		4,842,660			77,142	6.34	%
Total interest earning assets		5,967,328			90,343	6.01	%		6,766,742			94,433	5.54	%		7,396,178			95,420	5.13	%
Non-interest earning assets
Cash and due from banks		74,102							83,616							85,776
Allowance for credit losses		(49,815	)						(54,072	)						(52,697	)
Other assets		545,520							501,590							409,332
Total average assets	$	6,537,135						$	7,297,876						$	7,838,589

Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,686,435		$	5,572	1.31	%	$	1,708,446		$	6,687	1.55	%	$	1,716,598		$	6,861	1.59	%
Saving and money market deposits		1,445,144			5,587	1.53	%		1,636,428			8,204	1.99	%		1,701,012			9,336	2.18	%
Time deposits		1,134,417			10,071	3.52	%		1,198,279			10,835	3.59	%		1,160,527			11,621	3.98	%
Total Deposits		4,265,996			21,230	1.97	%		4,543,153			25,726	2.25	%		4,578,137			27,818	2.42	%
Borrowings		150,304			1,452	3.83	%		601,889			5,535	3.65	%		1,130,301			10,138	3.57	%
Repurchase agreements		87,160			295	1.34	%		88,721			389	1.74	%		91,960			518	2.24	%
Subordinated notes		98,185			1,812	7.32	%		91,032			1,731	7.54	%		55,717			829	5.92	%
Junior subordinated debentures issued to capital trusts		57,655			1,023	7.04	%		57,602			1,069	7.36	%		57,443			920	6.37	%
Total interest bearing liabilities		4,659,300			25,812	2.20	%		5,382,397			34,450	2.54	%		5,913,558			40,223	2.71	%
Non-interest bearing liabilities
Demand deposits		1,137,639							1,120,719							1,099,574
Accrued interest payable and other liabilities		60,375							63,103							70,117
Stockholders' equity		679,821							731,657							755,340
Total average liabilities and stockholders' equity	$	6,537,135						$	7,297,876						$	7,838,589
Net FTE interest income (non-GAAP) (5)				$	64,531						$	59,983						$	55,197
Less FTE adjustments (4)					1,055							1,597							2,070
Net Interest Income				$	63,476						$	58,386						$	53,127
Net FTE interest margin (Non-GAAP) (4)(5)						4.29	%						3.52	%						2.97	%
⁽¹⁾Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
⁽⁵⁾Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
⁽⁶⁾Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			% Change
		2025			2025			2025			2025			2024		Q4'25 vs Q3'25		Q4'25 vs Q4'24
Non-accrual loans
Commercial	$	14,549		$	12,303		$	7,547		$	8,172		$	5,658		18	%	157	%
Residential Real estate		10,087			9,256			9,525			12,763			11,215		9	%	(10	)%
Mortgage warehouse		—			—			—			—			—		—	%	—	%
Consumer		7,821			7,799			7,222			7,875			8,919		—	%	(12	)%
Total non-accrual loans		32,457			29,358			24,294			28,810			25,792		11	%	26	%
90 days and greater delinquent - accruing interest		2,489			1,608			2,113			1,582			1,166		55	%	113	%
Total non-performing loans	$	34,946		$	30,966		$	26,407		$	30,392		$	26,958		13	%	30	%

Other real estate owned
Commercial	$	539		$	272		$	176		$	360		$	407		98	%	32	%
Residential Real estate		672			769			463			641			—		(13	)%	—	%
Mortgage warehouse		—			—			—			—			—		—	%	—	%
Consumer		480			480			480			34			17		—	%	2701	%
Total other real estate owned		1,691			1,521			1,119			1,035			424		11	%	299	%
Other non-performing assets⁽¹⁾	$	3,991		$	3,228		$	2,937		$	—		$	—		24	%	—	%
Total non-performing assets	$	40,628		$	35,715		$	30,463		$	31,427		$	27,382		14	%	48	%

Loan data:
Accruing 30 to 89 days past due loans	$	24,580		$	24,784		$	31,401		$	19,034		$	23,075		(1	)%	7	%
Substandard loans		59,365			63,236			64,100			66,714			64,535		(6	)%	(8	)%
Net charge-offs (recoveries)
Commercial	$	436		$	294		$	84		$	(47	)	$	(32	)	48	%	(1462	)%
Residential Real estate		(25	)		19			52			(47	)		(10	)	(231	)%	149	%
Mortgage warehouse		—			—			—			—			—		—	%	—	%
Consumer		559			518			118			963			668		8	%	(16	)%
Total net charge-offs	$	970		$	831		$	254		$	869		$	626		17	%	55	%

Allowance for credit losses
Commercial	$	35,473		$	34,390		$	34,413		$	32,640		$	30,953		3	%	15	%
Residential Real estate		3,183			3,082			3,229			3,167			2,715		3	%	17	%
Mortgage warehouse		—			—			—			—			—		—	%	—	%
Consumer		12,643			12,706			16,757			16,847			18,312		—	%	(31	)%
Total allowance for credit losses	$	51,299		$	50,178		$	54,399		$	52,654		$	51,980		2	%	(1	)%

Credit quality ratios
Non-accrual loans to HFI loans		0.67	%		0.61	%		0.49	%		0.59	%		0.53	%
Non-performing assets to total assets		0.63	%		0.53	%		0.40	%		0.41	%		0.35	%
Annualized net charge-offs of average total loans		0.08	%		0.07	%		0.02	%		0.07	%		0.05	%
Allowance for credit losses to HFI loans		1.05	%		1.04	%		1.09	%		1.07	%		1.07	%
⁽¹⁾Other non-performing assets consist of a single available for sale debt security placed on non-accrual status.

		Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
			2025			2025			2025			2025			2024
Interest income (GAAP)	(A)	$	89,288		$	92,836		$	91,477		$	89,175		$	93,350
Taxable-equivalent adjustment:
Investment securities - tax exempt (1)			665			1,218			1,619			1,646			1,675
Loan receivable (2)			390			379			382			383			395
Interest income (non-GAAP)	(B)		90,343			94,433			93,478			91,204			95,420
Interest expense (GAAP)	(C)		25,812			34,450			36,122			36,908			40,223
Net interest income (GAAP)	(D) =(A) - (C)	$	63,476		$	58,386		$	55,355		$	52,267		$	53,127
Net FTE interest income (non-GAAP)	(E) = (B) - (C)	$	64,531		$	59,983		$	57,356		$	54,296		$	55,197
Average interest earning assets	(F)		5,967,328			6,766,742			7,125,467			7,234,724			7,396,178
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		4.29	%		3.52	%		3.23	%		3.04	%		2.97	%

⁽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
		December 31,			September 30,			June 30,			March 31,			December 31,
			2025			2025			2025			2025			2024

Net income (loss) (GAAP)	(A)	$	26,921		$	(221,990	)	$	20,644		$	23,941		$	(10,882	)

Average stockholders' equity	(B)	$	679,821		$	731,657		$	789,535		$	780,269		$	755,340
Average intangible assets	(C)		162,838			163,552			164,320			165,138			165,973
Average tangible equity (Non-GAAP)	(D) = (B) - (C)	$	516,983		$	568,105		$	625,215		$	615,131		$	589,367
Return on average tangible common equity ("ROACE") (non-GAAP)	(E) = (A*) / (D)		20.66	%		(155.03	)%		13.24	%		15.48	%		(7.35	)%
*Annualized

		Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
			2025			2025			2025			2025			2024
Total stockholders' equity (GAAP)	(A)	$	688,251		$	660,771		$	790,852		$	776,061		$	763,582
Intangible assets (end of period)	(B)		162,391			163,097			163,803			164,618			165,434
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	525,860		$	497,674		$	627,049		$	611,443		$	598,148

Total assets (GAAP)	(D)	$	6,436,611		$	6,712,497		$	7,652,051		$	7,628,636		$	7,801,146
Intangible assets (end of period)	(B)		162,391			163,097			163,803			164,618			165,434
Total tangible assets (non-GAAP)	(E) = (D) - (B)	$	6,274,220		$	6,549,400		$	7,488,248		$	7,464,018		$	7,635,712

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.38	%		7.60	%		8.37	%		8.19	%		7.83	%

		Non–GAAP Reconciliation of Tangible Book Value Per Share
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
			2025		2025		2025		2025		2024
Total stockholders' equity (GAAP)	(A)	$	688,251	$	660,771	$	790,852	$	776,061	$	763,582
Intangible assets (end of period)	(B)		162,391		163,097		163,803		164,618		165,434
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	525,860	$	497,674	$	627,049	$	611,443	$	598,148
Common shares outstanding	(D)		50,978,030		50,971,000		43,801,507		43,786,000		43,722,086

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	10.32	$	9.76	$	14.32	$	13.96	$	13.68

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

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Date	Price Target	Rating	Analyst
8/26/2025	$19.00	Mkt Perform → Outperform	Keefe Bruyette
9/30/2024	$18.00	Outperform	Hovde Group
7/6/2023		Outperform → Mkt Perform	Raymond James
2/22/2023	$17.00	Overweight → Neutral	Piper Sandler
10/28/2022	$23.00 → $18.00	Outperform → Mkt Perform	Keefe Bruyette
7/7/2022	$23.00 → $22.00	Strong Buy → Outperform	Raymond James
12/3/2021	$24.00 → $25.00	Strong Buy	Raymond James
10/29/2021	$21.00 → $24.00	Outperform → Strong Buy	Raymond James

Horizon Bancorp, Inc. Reports Positive Fourth Quarter 2025 Results, Entering 2026 with Peer Leading Performance Metrics

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Horizon Bancorp, Inc. Announces Retirement of James B. Dworkin and Resignation of Julie S. Freigang from the Board of Directors