Horizon Bancorp, Inc. Reports Strong Third Quarter 2025 Results and Successful Execution of the Balance Sheet Repositioning

10/22/25 4:05:00 PM ET

Major Banks

Finance

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MICHIGAN CITY, Ind., Oct. 22, 2025 (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, 2025.

"Horizon's third quarter results were highlighted by the successful execution of our previously announced strategic balance sheet repositioning, which has exceeded our initial expectations and is on pace to achieve the top tier financial outcomes outlined in our plan. At this point, there is little work left to be done, and the Company will continue its focus on improving shareholder value from a position of strength", President and CEO, Thomas Prame stated. "More importantly, underneath the specific impacts related to the balance sheet activities, our third quarter results further evidence the continued strength of the organization's exceptional core community banking franchise. Our net interest margin continues to expand, the commercial loan engine is producing solid results, the core client-driven deposit franchise is growing, credit quality is excellent and expenses are well managed. As we look ahead to the end of 2025 and into 2026, we will remain disciplined in our execution, focusing on profitable growth and smart redeployment of our peer-leading capital generation, all focused on creating durable returns and sustainable long-term value for our shareholders."

Net loss for the three months ended September 30, 2025 was $222.0 million, or $(4.69) per diluted share, compared to net income of $20.6 million, or $0.47, for the second quarter of 2025 and $18.2 million, or $0.41 per diluted share, for the third quarter of 2024. As previously disclosed, results for the third quarter of 2025 included several items impacting non-interest income, non-interest expense and the provision for credit loss directly related to the Company's successful efforts during the quarter to repositioning the balance sheet.

Net loss for the nine months ended September 30, 2025 was $177.4 million, or $(3.94) per diluted share, compared to net income of $46.3 million, or $1.05, for the nine months ended September 30, 2024.

Third Quarter 2025 Highlights

Successful execution of strategic Balance Sheet transformation, positioning the bank for top quartile performance.

Net interest income of $58.4 million increased 5.5% compared with $55.4 million for the three months ended June 30, 2025, and 24.5% compared with $46.9 million in the year ago period. Net interest margin, on a fully taxable equivalent ("FTE") basis¹, expanded for the eighth consecutive quarter, to 3.52%, compared with 3.23% for the three months ended June 30, 2025 and 2.66% for the three months ended September 30, 2024.

Total loans held for investment ("HFI") decreased (13.0)% compared to the linked quarter annualized, with strong organic commercial loan growth of $57.9 million, or 7.0% annualized. The decrease in loans HFI is directly related to the continued planned runoff and the eventual sale of the Company's indirect auto portfolio of $176 million in the third quarter.

Funding continued to trend favorably, with non-interest bearing deposits remaining flat. Savings and money market balances were specifically impacted by the planned high-cost deposit runoff related to the balance sheet repositioning. Overall interest-bearing liability cost decreased by 2 bps during the quarter.

Credit quality remained strong, with annualized net charge offs of 0.07% of average loans during the third quarter. Non-performing assets remain well within expected ranges, with non-performing assets to total asset of 53 bps for the third quarter.

While reported expenses were impacted by a couple of items related to the balance sheet activities in the quarter, when considering these items, expenses continued to be well managed compared with the second quarter of 2025. These results reflect management's continued commitment to generate positive operating leverage with 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
	September 30,			June 30,			March 31,			December 31,			September 30,
		2025			2025			2025			2024			2024
Income statement:
Net interest income	$	58,386		$	55,355		$	52,267		$	53,127		$	46,910
Provision for credit losses		(3,572	)		2,462			1,376			1,171			1,044
Non-interest income (loss)		(295,334	)		10,920			16,499			(28,954	)		11,511
Non-interest expense		52,952			39,417			39,306			44,935			39,272
Income tax expense (benefit)		(64,338	)		3,752			4,141			(11,051	)		(75	)
Net Income (Loss)	$	(221,990	)	$	20,644		$	23,943		$	(10,882	)	$	18,180

Per share data:
Basic earnings (loss) per share	$	(4.69	)	$	0.47		$	0.55		$	(0.25	)	$	0.42
Diluted earnings (loss) per share		(4.69	)		0.47			0.54			(0.25	)		0.41
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		12.96			18.06			17.72			17.46			17.27
Market value - high		16.88			15.88			17.76			18.76			16.57
Market value - low		15.01			12.92			15.00			14.57			11.89
Weighted average shares outstanding - Basic		47,311,642			43,794,490			43,777,109			43,721,211			43,712,059
Weighted average shares outstanding - Diluted		47,311,642			44,034,663			43,954,164			43,721,211			44,112,321
Common shares outstanding (end of period)		50,970,530			43,801,507			43,785,932			43,722,086			43,712,059

Key ratios:
Return on average assets	(12.07)%				1.09	%		1.25	%	(0.56)%				0.92	%
Return on average stockholders' equity		(120.37	)		10.49			12.44			(5.73	)		9.80
Total equity to total assets		9.84			10.34			10.18			9.79			9.52
Total loans to deposit ratio		87.41			87.52			85.21			87.75			83.92
Allowance for credit losses to HFI loans		1.04			1.09			1.07			1.07			1.10
Annualized net charge-offs of average total loans⁽¹⁾		0.07			0.02			0.07			0.05			0.03
Efficiency ratio		(22.35	)		59.47			57.16			185.89			67.22

Key metrics (Non-GAAP)⁽²⁾
Net FTE interest margin		3.52	%		3.23	%		3.04	%		2.97	%		2.66	%
Return on average tangible common equity		(155.03	)		13.24			15.79			(7.35	)		12.65
Tangible common equity to tangible assets		7.60			8.37			8.19			7.83			7.58
Tangible book value per common share	$	9.76		$	14.32		$	13.96		$	13.68		$	13.46


_{⁽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 $58.4 million in the third quarter of 2025, compared to $55.4 million in the second quarter of 2025, driven by the continued expansion of the Company's net FTE interest margin², which increased to 3.52% for the third quarter of 2025, compared to 3.23% for the second quarter of 2025. While the margin saw expansion throughout the quarter, most of the increase came later in the quarter as a byproduct of the balance sheet repositioning, all of which transpired following the close of the Company's equity capital raise on August 22ⁿ^d, 2025.

Provision for Credit Losses

During the third quarter of 2025, the Company recorded a benefit for credit losses of $(3.6) million. This compares to a provision for credit losses expense of $2.5 million during the second quarter of 2025, and a provision for credit losses expense of $1.0 million during the third quarter of 2024. The decrease in the provision for credit losses during the third quarter of 2025 when compared with the second 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. Additionally, the Provision benefitted from continued improvement in the Company's historical loss metrics and the release of the $0.2 million reserve against the previous Held-To-Maturity investment portfolio. These favorable items were partially offset by net growth in Commercial Loans HFI and a modest increase in specific reserves.

For the third quarter of 2025, Net Charge-Offs were $0.8 million, or an annualized 0.07% of Average Loans Outstanding, compared to Net Charge-Offs of $0.3 million, or an annualized 0.02% of average loans outstanding for the second quarter of 2025, and Net Charge-Offs of $0.4 million, or an annualized 0.03% of Average Loans Outstanding, in the third quarter of 2024.

The Company's Allowance for Credit Losses as a percentage of period-end loans HFI was 1.04% at September 30, 2025, compared to 1.09% at June 30, 2025 and 1.10% at September 30, 2024.

Non-Interest Income

For the Quarter Ended	September 30,			June 30,		March 31,			December 31,			September 30,
(Dollars in Thousands)		2025			2025		2025			2024			2024
Non-interest (Loss) Income
Service charges on deposit accounts	$	3,474		$	3,208	$	3,208		$	3,276		$	3,320
Wire transfer fees		71			69		71			124			123
Interchange fees		3,510			3,403		3,241			3,353			3,511
Fiduciary activities		1,363			1,251		1,326			1,313			1,394
Loss on sale of investment securities		(299,132	)		—		(407	)		(39,140	)		—
Gain on sale of mortgage loans		1,208			1,219		1,076			1,071			1,622
Mortgage servicing income net of impairment		351			375		385			376			412
Increase in cash value of bank owned life insurance		379			346		335			335			349
Other income		(6,558	)		1,049		7,264			338			780
Total non-interest (loss) income	$	(295,334	)	$	10,920	$	16,499		$	(28,954	)	$	11,511

Total Non-Interest (Loss) was $295.3 million in the third quarter of 2025, compared to Non-Interest Income of $10.9 million in the second quarter of 2025. The decrease in Non-Interest Income of $306.3 million is due to the 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. Service Charges, Interchange Fees and Gain on Sale of Mortgage Loans benefited from normal seasonality. Other categories remained relatively unchanged when compared with the prior period.

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

Non-Interest Expense

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in Thousands)		2025		2025		2025		2024		2024
Non-interest Expense
Salaries and employee benefits	$	22,698	$	22,731	$	22,414	$	25,564	$	21,829
Net occupancy expenses		3,321		3,127		3,702		3,431		3,207
Data processing		2,933		2,951		2,872		2,841		2,977
Professional fees		808		735		826		736		676
Outside services and consultants		3,844		3,278		3,265		4,470		3,677
Loan expense		1,237		1,231		689		1,285		1,034
FDIC insurance expense		1,345		1,216		1,288		1,193		1,204
Core deposit intangible amortization		706		816		816		843		844
Merger related expenses		—		—		305		—		—
Prepayment penalties		12,680		—		—		—		—
Other losses		131		245		228		371		297
Other expense		3,249		3,087		2,901		4,201		3,527
Total non-interest expense	$	52,952	$	39,417	$	39,306	$	44,935	$	39,272

Total Non-Interest Expense was $53.0 million in the third quarter of 2025, compared with $39.4 million in the second quarter of 2025. The increase in Non-Interest Expense during the third 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 quarter. Additionally, the quarter included approximately $0.9 million of expenses related to the balance sheet initiatives and other efforts, which are not expected to recur in future periods. Apart from these specific items, total Non-Interest Expense was relatively unchanged when compared with the prior quarter.

Income Taxes

Resulting from the reported losses incurred during balance sheet repositioning efforts, Horizon recorded a net tax credit of $64.3 million for the third quarter of 2025, resulting in an effective tax rate of 22.5%.

Balance Sheet Highlights

Total assets decreased by $939.6 million, or 12.3%, to $6.7 billion as of September 30, 2025, from $7.7 billion as of June 30, 2025. The decrease in total assets is primarily due to the Company's balance sheet repositioning efforts, which resulted in a decrease in total investment securities of $1.2 billion and a decrease in loans held for investment of $161.9 million, partially offset by an increase in interest earning deposits. During the quarter, the Company moved its entire held to maturity securities portfolio to available for sale, sold approximately $1.7 billion in book value and reinvested approximately $580 million of the proceeds in the available for sale portfolio, resulting in a net increase in available for sale securities of $651.2 million. Total loans were $4.8 billion at September 30, 2025, a decrease of $163.0 million from June 30, 2025 balances, as organic commercial loan growth was offset by the continued run-off of consumer balances and the sale of approximately $176 million of the Company's indirect auto portfolio on September 26, 2025.

Total deposits decreased by $178.9 million, or 3.1%, to $5.5 billion as of September 30, 2025 when compared to balances as of June 30, 2025. The decrease was driven by the ongoing balance sheet repositioning efforts, which led to a decline of approximately $275 million in high-cost transactional deposit balances, which were partially offset by growth in commercial interest-bearing and seasonal inflows in relationship-based public funds balances. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings decreased by $720.1 million during the quarter to $160.2 million as of September 30, 2025, due to the payoff of the FHLB advances related to the balance sheet repositioning. Subordinated notes balances increase by $98.3 million during the quarter from the closing of the Company's $100.0 million offering, which closed on August 29, 2025. Subsequent to quarter end, on October 1, 2025, the Company redeemed the remaining $56.5 million subordinated note issuance previously outstanding.

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, 2025:

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,
	2025*		2025		2025		2024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)	15.03	%	14.44	%	14.26	%	13.91	%
Tier 1 capital (to risk-weighted assets)	11.29		12.48		12.33		12.00
Common equity tier 1 capital (to risk-weighted assets)	10.19		11.48		11.32		11.00
Tier 1 capital (to average assets)	8.22		9.59		9.25		8.88
*Preliminary estimate - may be subject to change

As of September 30, 2025, the ratio of total stockholders' equity to total assets is 9.84%. Book value per common share was $12.96, declining $(5.10) during the third quarter of 2025 related to the third quarter balance sheet actions.

Tangible common equity³ totaled $497.7 million at September 30, 2025, and the ratio of tangible common equity to tangible assets¹ was 7.60% at September 30, 2025, down from 8.37% at June 30, 2025. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $9.76, decreasing $(4.56) during the third quarter of 2025.

Credit Quality

As of September 30, 2025, total non-accrual loans increased by $5.1 million, or 20.8%, from June 30, 2025, to 0.61% of total loans HFI. Total non-performing assets increased $5.3 million, or 17.2%, to $35.7 million, compared to $30.5 million as of June 30, 2025. The ratio of non-performing assets to total assets increased to 0.53% compared to 0.40% as of June 30, 2025.

As of September 30, 2025, net charge-offs increased by $0.5 million to $0.8 million, compared to $0.3 million as of June 30, 2025 and remain just 0.07% annualized of average loans.

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1} Non-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 third quarter financial results and operating performance.

Participants may access the live conference call on October 23, 2025 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 August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.7 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: effects on Horizon's business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, 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; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon's assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; 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, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; 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
	September 30,			June 30,		March 31,			December 31,			September 30,
		2025			2025		2025			2024			2024
Interest Income
Loans receivable	$	79,561		$	78,618	$	74,457		$	76,747		$	75,488
Investment securities - taxable		6,631			5,941		6,039			6,814			8,133
Investment securities - tax-exempt		4,581			6,088		6,192			6,301			6,310
Other		2,063			830		2,487			3,488			957
Total interest income		92,836			91,477		89,175			93,350			90,888
Interest Expense
Deposits		25,726			26,052		25,601			27,818			30,787
Borrowed funds		5,924			8,171		9,188			10,656			11,131
Subordinated notes		1,731			829		829			829			830
Junior subordinated debentures issued to capital trusts		1,069			1,070		1,290			920			1,230
Total interest expense		34,450			36,122		36,908			40,223			43,978
Net Interest Income		58,386			55,355		52,267			53,127			46,910
Provision for credit losses		(3,572	)		2,462		1,376			1,171			1,044
Net Interest Income after Provision for Credit Losses		61,958			52,893		50,891			51,956			45,866
Non-interest Income
Service charges on deposit accounts		3,474			3,208		3,208			3,276			3,320
Wire transfer fees		71			69		71			124			123
Interchange fees		3,510			3,403		3,241			3,353			3,511
Fiduciary activities		1,363			1,251		1,326			1,313			1,394
Loss on sale of investment securities		(299,132	)		—		(407	)		(39,140	)		—
Gain on sale of mortgage loans		1,208			1,219		1,076			1,071			1,622
Mortgage servicing income net of impairment		351			375		385			376			412
Increase in cash value of bank owned life insurance		379			346		335			335			349
Other income		(6,558	)		1,049		7,264			338			780
Total non-interest income (loss)		(295,334	)		10,920		16,499			(28,954	)		11,511
Non-interest Expense
Salaries and employee benefits		22,698			22,731		22,414			25,564			21,829
Net occupancy expenses		3,321			3,127		3,702			3,431			3,207
Data processing		2,933			2,951		2,872			2,841			2,977
Professional fees		808			735		826			736			676
Outside services and consultants		3,844			3,278		3,265			4,470			3,677
Loan expense		1,237			1,231		689			1,285			1,034
FDIC insurance expense		1,345			1,216		1,288			1,193			1,204
Core deposit intangible amortization		706			816		816			843			844
Merger related expenses		—			—		305			—			—
Prepayment penalties		12,680			—		—			—			—
Other losses		131			245		228			371			297
Other expense		3,249			3,087		2,901			4,201			3,527
Total non-interest expense		52,952			39,417		39,306			44,935			39,272
Income (Loss) Before Income Taxes		(286,328	)		24,396		28,084			(21,933	)		18,105
Income tax expense (benefit)		(64,338	)		3,752		4,141			(11,051	)		(75	)
Net Income (Loss)	$	(221,990	)	$	20,644	$	23,943		$	(10,882	)	$	18,180
Basic Earnings (Loss) Per Share	$	(4.69	)	$	0.47	$	0.55		$	(0.25	)	$	0.42
Diluted Earnings (Loss) Per Share		(4.69	)		0.47		0.54			(0.25	)		0.41

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	September 30,			June 30,			March 31,			December 31,			September 30,
		2025			2025			2025			2024			2024
Assets
Interest earning assets
Federal funds sold	$	—		$	2,024		$	—		$	—		$	113,912
Interest earning deposits		381,860			34,175			80,023			201,131			12,107
Interest earning time deposits		—			—			—			735			735
Federal Home Loan Bank stock		45,713			45,412			45,412			53,826			53,826
Investment securities, held for trading		598			—			—			—			—
Investment securities, available for sale		883,242			231,999			231,431			233,677			541,170
Investment securities, held to maturity		—			1,819,087			1,843,851			1,867,690			1,888,379
Loans held for sale		1,921			2,994			3,253			67,597			2,069
Gross loans held for investment (HFI)		4,823,669			4,985,582			4,909,815			4,847,040			4,803,996
Total Interest earning assets		6,137,003			7,121,273			7,113,784			7,271,696			7,416,194
Non-interest earning assets
Allowance for credit losses		(50,178	)		(54,399	)		(52,654	)		(51,980	)		(52,881	)
Cash		76,395			101,719			89,643			92,300			108,815
Cash value of life insurance		37,762			37,755			37,409			37,450			37,115
Other assets		226,247			148,775			143,675			152,635			119,026
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		7,886			8,592			9,407			10,223			11,067
Premises and equipment, net		93,413			93,398			93,499			93,864			93,544
Interest receivable		28,757			39,730			38,663			39,747			39,366
Total non-interest earning assets		575,493			530,781			514,855			529,450			511,263
Total assets	$	6,712,496		$	7,652,054		$	7,628,639		$	7,801,146		$	7,927,456
Liabilities
Savings and money market deposits	$	3,198,332		$	3,385,413		$	3,393,371		$	3,446,681		$	3,420,827
Time deposits		1,199,681			1,193,180			1,245,088			1,089,153			1,220,653
Borrowings		160,206			880,336			812,218			1,142,340			1,142,744
Repurchase agreements		86,966			95,089			87,851			89,912			122,399
Subordinated notes		154,011			55,807			55,772			55,738			55,703
Junior subordinated debentures issued to capital trusts		57,636			57,583			57,531			57,477			57,423
Total interest earning liabilities		4,856,832			5,667,408			5,651,832			5,881,301			6,019,749
Non-interest bearing deposits		1,122,888			1,121,163			1,127,324			1,064,818			1,085,535
Interest payable		12,395			14,007			11,441			11,137			11,400
Other liabilities		59,610			58,621			61,981			80,308			55,951
Total liabilities		6,051,725			6,861,199			6,852,578			7,037,564			7,172,635
Stockholders' Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		458,734			360,758			360,522			363,761			358,453
Retained earnings		236,312			466,498			452,945			436,122			454,050
Accumulated other comprehensive (loss)		(34,275	)		(36,403	)		(37,406	)		(36,301	)		(57,681	)
Total stockholders' equity		660,771			790,853			776,061			763,582			754,822
Total liabilities and stockholders' equity	$	6,712,496		$	7,652,052		$	7,628,639		$	7,801,146		$	7,927,457

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	September 30,		June 30,		March 31,		December 31,		September 30,		% Change
		2025		2025		2025		2024		2024	Q3'25 vs Q2'25		Q3'25 vs Q3'24
Loans:
Commercial real estate	$	2,366,956	$	2,321,951	$	2,262,910	$	2,202,858	$	2,105,459	2	%	12	%
Commercial & Industrial		989,609		976,740		918,541		875,297		808,600	1	%	22	%
Total commercial		3,356,565		3,298,691		3,181,451		3,078,155		2,914,059	2	%	15	%
Residential Real estate		783,850		786,026		801,726		802,909		801,356	—	%	(2)%
Mortgage warehouse		—		—		—		—		80,437	—	%	(100)%
Consumer		683,254		900,865		926,638		965,976		1,008,144	(24)%		(32)%
Total loans held for investment		4,823,669		4,985,582		4,909,815		4,847,040		4,803,996	(3)%		—	%
Loans held for sale		1,921		2,994		3,253		67,597		2,069	(36)%		(7)%
Total loans	$	4,825,590	$	4,988,576	$	4,913,068	$	4,914,637	$	4,806,065	(3)%		—	%

Deposits:
Interest bearing deposits	$	1,715,471	$	1,713,058	$	1,713,991	$	1,767,983	$	1,688,998	—	%	2	%
Savings and money market deposits		1,482,861		1,672,355		1,679,380		1,678,697		1,731,830	(11)%		(14)%
Time deposits		1,199,681		1,193,180		1,245,088		1,089,153		1,220,653	1	%	(2)%
Total Interest bearing deposits		4,398,013		4,578,593		4,638,459		4,535,833		4,641,481	(4)%		(5)%
Non-interest bearing deposits
Non-interest bearing deposits		1,122,888		1,121,164		1,127,324		1,064,819		1,085,534	—	%	3	%
Total deposits	$	5,520,901	$	5,699,757	$	5,765,784	$	5,600,652	$	5,727,015	(3)%		(4)%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	September 30, 2025							June 30, 2025							September 30, 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)	$	185,665		$	2,062	4.41	%	$	72,993		$	830	4.56	%	$	73,524		$	957	5.18	%
Federal Home Loan Bank stock		45,549			862	7.51	%		45,412			1,075	9.49	%		53,826			1,607	11.88	%
Investment securities - taxable (1)		792,829			5,769	2.89	%		959,238			4,866	2.03	%		1,301,830			6,526	1.99	%
Investment securities - non-taxable (1)		763,488			5,799	3.01	%		1,100,731			7,707	2.81	%		1,125,295			7,987	2.82	%
Total investment securities		1,556,317			11,568	2.95	%		2,059,969			12,573	2.45	%		2,427,125			14,513	2.38	%
Loans receivable (2) (3)		4,979,211			79,941	6.37	%		4,947,093			79,000	6.41	%		4,775,788			75,828	6.32	%
Total interest earning assets		6,766,742			94,433	5.54	%		7,125,467			93,478	5.26	%		7,330,263			92,905	5.04	%
Non-interest earning assets
Cash and due from banks		83,616							86,316							108,609
Allowance for credit losses		(54,072	)						(52,560	)						(52,111	)
Other assets		501,590							472,175							471,259
Total average assets	$	7,297,876						$	7,631,398						$	7,858,020

Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,708,446		$	6,687	1.55	%	$	1,727,713		$	6,803	1.58	%	$	3,386,177		$	18,185	2.14	%
Saving and money market deposits		1,636,428			8,204	1.99	%		1,651,866			8,200	1.99	%		—			—	—	%
Time deposits		1,198,279			10,835	3.59	%		1,233,582			11,049	3.59	%		1,189,148			12,602	4.22	%
Total Deposits		4,543,153			25,726	2.25	%		4,613,161			26,052	2.27	%		4,575,325			30,787	2.68	%
Borrowings		601,889			5,535	3.65	%		847,862			7,777	3.68	%		1,149,952			10,221	3.54	%
Repurchase agreements		88,721			389	1.74	%		88,058			394	1.79	%		123,524			910	2.93	%
Subordinated notes		91,032			1,731	7.54	%		55,785			829	5.96	%		55,681			830	5.93	%
Junior subordinated debentures issued to capital trusts		57,602			1,069	7.36	%		57,550			1,070	7.46	%		57,389			1,230	8.53	%
Total interest bearing liabilities		5,382,397			34,450	2.54	%		5,662,416			36,122	2.56	%		5,961,871			43,978	2.93	%
Non-interest bearing liabilities
Demand deposits		1,120,719							1,114,982							1,083,214
Accrued interest payable and other liabilities		63,104							64,465							74,563
Stockholders' equity		731,657							789,535							738,372
Total average liabilities and stockholders' equity	$	7,297,876						$	7,631,398						$	7,858,020
Net FTE interest income (non-GAAP) (5)				$	59,983						$	57,356						$	48,927
Less FTE adjustments (4)					1,597							2,001							2,017
Net Interest Income				$	58,386						$	55,355						$	46,910
Net FTE interest margin (Non-GAAP) (4)(5)						3.52	%						3.23	%						2.66	%
_{⁽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
	September 30,			June 30,			March 31,			December 31,			September 30,			% Change
		2025			2025			2025			2024			2024		Q3'25 vs Q2'25		Q3'25 vs Q3'24
Non-accrual loans
Commercial	$	12,303		$	7,547		$	8,172		$	5,658		$	6,830		63	%	80	%
Residential Real estate		9,256			9,525			12,763			11,215			9,529		(3)%		(3)%
Mortgage warehouse		—			—			—			—			—		—	%	—	%
Consumer		7,799			7,222			7,875			8,919			7,208		8	%	8	%
Total non-accrual loans		29,358			24,294			28,810			25,792			23,567		21	%	25	%
90 days and greater delinquent - accruing interest		1,608			2,113			1,582			1,166			819		(24)%		96	%
Total non-performing loans	$	30,966		$	26,407		$	30,392		$	26,958		$	24,386		17	%	27	%

Other real estate owned
Commercial	$	272		$	176		$	360		$	407		$	1,158		55	%	(76)%
Residential Real estate		769			463			641			—			—		—	%	—	%
Mortgage warehouse		—			—			—			—			—		—	%	—	%
Consumer		480			480			34			17			36		—	%	1233	%
Total other real estate owned		1,521			1,119			1,035			424			1,194		36	%	27	%


Other non-performing assets⁽¹⁾	$	3,228		$	2,937		$	—		$	—		$	—		10	%	—	%

Total non-performing assets	$	35,715		$	30,463		$	31,427		$	27,382		$	25,580		17	%	40	%

Loan data:
Accruing 30 to 89 days past due loans	$	24,784		$	31,401		$	19,034		$	23,075		$	18,087		(21)%		37	%
Substandard loans		63,236			64,100			66,714			64,535			59,775		(1)%		6	%
Net charge-offs (recoveries)
Commercial	$	294		$	84		$	(47	)	$	(32	)	$	(52	)	250	%	(665)%
Residential Real estate		19			52			(47	)		(10	)		(9	)	(64)%		(307)%
Mortgage warehouse		—			—			—			—			—		—	%	—	%
Consumer		518			118			963			668			439		339	%	18	%
Total net charge-offs	$	831		$	254		$	869		$	626		$	378		227	%	120	%

Allowance for credit losses
Commercial	$	34,390		$	34,413		$	32,640		$	30,953		$	32,854		—	%	5	%
Residential Real estate		3,083			3,229			3,167			2,715			2,675		(5)%		15	%
Mortgage warehouse		—			—			—			—			862		—	%	(100)%
Consumer		12,706			16,757			16,847			18,312			16,490		(24)%		(23)%
Total allowance for credit losses	$	50,178		$	54,399		$	52,654		$	51,980		$	52,881		(8)%		(5)%

Credit quality ratios
Non-accrual loans to HFI loans		0.61	%		0.49	%		0.59	%		0.53	%		0.49	%
Non-performing assets to total assets		0.53	%		0.40	%		0.41	%		0.35	%		0.32	%
Annualized net charge-offs of average total loans		0.07	%		0.02	%		0.07	%		0.05	%		0.03	%
Allowance for credit losses to HFI loans		1.04	%		1.09	%		1.07	%		1.07	%		1.10	%
_{⁽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
		September 30,			June 30,			March 31,			December 31,			September 30,
			2025			2025			2025			2024			2024
Interest income (GAAP)	(A)	$	92,836		$	91,477		$	89,175		$	93,350		$	90,888
Taxable-equivalent adjustment:
Investment securities - tax exempt (1)			1,218			1,619			1,646			1,675			1,677
Loan receivable (2)			379			382			383			395			340
Interest income (non-GAAP)	(B)		94,433			93,478			91,204			95,420			92,905
Interest expense (GAAP)	(C)		34,450			36,122			36,908			40,223			43,978
Net interest income (GAAP)	(D) =(A) - (C)	$	58,386		$	55,355		$	52,267		$	53,127		$	46,910
Net FTE interest income (non-GAAP)	(E) = (B) - (C)	$	59,983		$	57,356		$	54,296		$	55,197		$	48,927
Average interest earning assets	(F)		6,766,742			7,125,467			7,234,724			7,396,178			7,330,263
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		3.52	%		3.23	%		3.04	%		2.97	%		2.66	%

_{⁽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,
			2025			2025			2025			2024			2024

Net income (loss) (GAAP)	(A)	$	(221,990	)	$	20,644		$	23,941		$	(10,882	)	$	18,180

Average stockholders' equity	(B)	$	731,657		$	789,535		$	780,269		$	755,340		$	738,372
Average intangible assets	(C)		163,552			164,320			165,138			165,973			166,819
Average tangible equity (Non-GAAP)	(D) = (B) - (C)	$	568,105		$	625,215		$	615,131		$	589,367		$	571,553
Return on average tangible common equity ("ROACE") (non-GAAP)	(E) = (A*) / (D)	(155.03)%				13.24	%		15.48	%	(7.35)%				12.65	%
*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,
			2025			2025			2025			2024			2024
Total stockholders' equity (GAAP)	(A)	$	660,771		$	790,852		$	776,061		$	763,582		$	754,822
Intangible assets (end of period)	(B)		163,097			163,803			164,618			165,434			166,278
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	497,674		$	627,049		$	611,443		$	598,148		$	588,544

Total assets (GAAP)	(D)	$	6,712,496		$	7,652,051		$	7,628,636		$	7,801,146		$	7,927,457
Intangible assets (end of period)	(B)		163,097			163,803			164,618			165,434			166,278
Total tangible assets (non-GAAP)	(E) = (D) - (B)	$	6,549,399		$	7,488,248		$	7,464,018		$	7,635,712		$	7,761,179

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		7.60	%		8.37	%		8.19	%		7.83	%		7.58	%

		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,
			2025		2025		2025		2024		2024
Total stockholders' equity (GAAP)	(A)	$	660,771	$	790,852	$	776,061	$	763,582	$	754,822
Intangible assets (end of period)	(B)		163,097		163,803		164,618		165,434		166,278
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	497,674	$	627,049	$	611,443	$	598,148	$	588,544
Common shares outstanding	(D)		50,970,530		43,801,507		43,786,000		43,722,086		43,712,059

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	9.76	$	14.32	$	13.96	$	13.68	$	13.46

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	October 22, 2025

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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 Strong Third Quarter 2025 Results and Successful Execution of the Balance Sheet Repositioning

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