Horizon Bancorp, Inc. Reports First Quarter 2025 Results
horizonbancorpinc876_sm-10a.jpg
Contact:John R. Stewart, CFA
EVP, Chief Financial Officer
Phone:(219) 814–5833
Fax:
(219) 874–9280
Date:April 23, 2025

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports First Quarter 2025 Results

Michigan City, Indiana, April 23, 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 March 31, 2025.

“Horizon’s first quarter earnings displayed continued positive momentum in our core financial metrics and management’s commitment to deliver long term value to its shareholders. Our results were highlighted by a sixth consecutive quarter of margin expansion, now above 3%, strong loan growth with exceptional credit metrics and a core funding base that continues to deliver value, even in an uncertain economic environment. The team also delivered a more efficient expense base entering 2025 and added optionality to our capital position through the successful sale of our mortgage warehouse business", President and CEO, Thomas Prame stated. “We are pleased with our first quarter results and the positive momentum across our community banking model. The core franchise remains strong and our investments in expanding our local relationship banking model is paying dividends".

Net income for the three months ended March 31, 2025 was $23.9 million, or $0.54 per diluted share, compared to net loss of $10.9 million, or $0.25, for the fourth quarter of 2024 and compared to $14.0 million, or $0.32 per diluted share, for the first quarter of 2024.























1
Horizon Bancorp, Inc. Reports First Quarter 2025 Results
First Quarter 2025 Highlights

•Net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the sixth consecutive quarter, to 3.04% compared with 2.97% for the three months ended December 31, 2024 and 2.50% for the three months ended March 31, 2024.

•Total loans held for investment ("HFI") increased 5% linked quarter annualized, with strong organic commercial loan growth of $103.3 million, or 14% annualized. This growth was partially funded by the continued strategic runoff of lowering yielding indirect auto loans of approximately $36 million.

•Core deposits continued to be stable, with non-interest-bearing balances growing $62.5 million during the period, or 24% annualized.

•Credit quality remained strong, with annualized net charge offs of 0.07% of average loans during the first quarter. Non-performing assets remain well within expected ranges, with no material change from the prior quarter.

•On January 17, 2025, the Company completed the sale of its mortgage warehouse business to an unrelated third party, resulting in a pre-tax gain of $7.0 million.

•Expenses were down $5.6 million from the fourth quarter of 2024, reflecting management's commitment to creating a more efficient expense base in 2025.



1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
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Horizon Bancorp, Inc. Reports First Quarter 2025 Results

Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20252024202420242024
Income statement:
Net interest income$52,267 $53,127 $46,910 $45,279 $43,288 
Credit loss expense1,376 1,171 1,044 2,369 805 
Non-interest income (loss)16,499 (28,954)11,511 10,485 9,929 
Non-interest expense39,306 44,935 39,272 37,522 37,107 
Income tax expense (benefit)4,141 (11,051)(75)1,733 1,314 
Net income (loss)$23,943 $(10,882)$18,180 $14,140 $13,991 
Per share data:
Basic earnings (loss) per share$0.55 $(0.25)$0.42 $0.32 $0.32 
Diluted earnings (loss) per share0.54 (0.25)0.41 0.32 0.32 
Cash dividends declared per common share0.16 0.16 0.16 0.16 0.16 
Book value per common share17.72 17.46 17.27 16.62 16.49 
Market value - High17.76 18.76 16.57 12.74 14.44 
Market value - Low15.00 14.57 11.89 11.29 11.75 
Weighted average shares outstanding - Basic43,777,109 43,721,211 43,712,059 43,712,059 43,663,610 
Weighted average shares outstanding - Diluted43,954,164 43,721,211 44,112,321 43,987,187 43,874,036 
Common shares outstanding (end of period)43,785,932 43,722,086 43,712,059 43,712,059 43,726,380 
Key ratios:
Return on average assets1.25 %(0.55)%0.92 %0.73 %0.72 %
Return on average stockholders' equity12.44 (5.73)9.80 7.83 7.76 
Total equity to total assets10.18 9.79 9.52 9.18 9.18 
Total loans to deposit ratio85.21 87.75 83.92 85.70 82.78 
Allowance for credit losses to HFI loans1.07 1.07 1.10 1.08 1.09 
Annualized net charge-offs of average total loans(1)
0.07 0.05 0.03 0.05 0.04 
Efficiency ratio57.16 185.89 67.22 67.29 69.73 
Key metrics (Non-GAAP)(2) :
Net FTE interest margin3.04 %2.97 %2.66 %2.64 %2.50 %
Return on average tangible common equity15.79 (7.35)12.65 — 10.18 10.11 
Tangible common equity to tangible assets8.20 7.83 7.58 7.22 7.20 
Tangible book value per common share$13.96 $13.68 $13.46 $12.80 $12.65 
(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.
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Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Income Statement Highlights

Net Interest Income

Net interest income was $52.3 million in the first quarter of 2025, compared to $53.1 million in the fourth quarter of 2024. Continued expansion of the Company's net FTE interest margin was offset by a decline in average interest earning asset balances and two fewer days when compared with the prior quarter. Horizon’s net FTE interest margin1 was 3.04% for the first quarter of 2025, compared to 2.97% for the fourth quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. Additionally, as previously noted, the fourth quarter net FTE interest margin included approximately five basis points related to interest recoveries on specific commercial loans that did not recur.

Provision for Credit Losses

During the first quarter of 2025, the Company recorded a provision for credit losses of $1.4 million. This compares to a provision for credit losses of $1.2 million during the fourth quarter of 2024, and $0.8 million during the first quarter of 2024. The increase in the provision for credit losses during the first quarter of 2025 when compared with the fourth quarter of 2024 was primarily attributable to increased net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

For the first quarter of 2025, the allowance for credit losses included net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the fourth quarter of 2024, and net charge-offs of $0.3 million, or an annualized 0.04% of average loans outstanding, in the first quarter of 2024.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.07% at March 31, 2025, compared to 1.07% at December 31, 2024 and 1.09% at March 31, 2024.

Non-Interest Income

For the Quarter EndedMarch 31,December 31,September 30,June 30,March 31,
(Dollars in Thousands)20252024202420242024
Non-interest Income
Service charges on deposit accounts$3,208 $3,276 $3,320 $3,130 $3,214 
Wire transfer fees71 124 123 113 101 
Interchange fees3,241 3,353 3,511 3,826 3,109 
Fiduciary activities1,326 1,313 1,394 1,372 1,315 
Loss on sale of investment securities(407)(39,140)— — — 
Gain on sale of mortgage loans1,076 1,071 1,622 896 626 
Mortgage servicing income net of impairment385 376 412 450 439 
Increase in cash value of bank owned life insurance335 335 349 318 298 
Other income7,264 338 780 380 827 
Total non-interest income (loss)$16,499 $(28,954)$11,511 $10,485 $9,929 

Total non-interest income was $16.5 million in the first quarter of 2025, compared to non-interest loss of $29.0 million in the fourth quarter of 2024. The increase in non-interest income of $45.5 million is primarily due to a pre-tax loss on sale of investment securities of $39.1 million from the completion of the repositioning of $332.2 million of available-for-sale securities during the fourth quarter of 2024, compared to a loss on the sale of investment securities of $0.4 million in the first quarter of 2025. In addition, the Company completed the sale of its mortgage warehouse business to an unrelated third party in the current period, resulting in a pre-tax gain of $7.0 million.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
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Horizon Bancorp, Inc. Reports First Quarter 2025 Results


Non-Interest Expense

For the Quarter EndedMarch 31,December 31,September 30,June 30,March 31,
(Dollars in Thousands)20252024202420242024
Non-interest Expense
Salaries and employee benefits$22,414 $25,564 $21,829 $20,583 $20,268 
Net occupancy expenses3,702 3,431 3,207 3,192 3,546 
Data processing2,872 2,841 2,977 2,579 2,464 
Professional fees826 736 676 714 607 
Outside services and consultants3,265 4,470 3,677 3,058 3,359 
Loan expense689 1,285 1,034 1,038 719 
FDIC insurance expense1,288 1,193 1,204 1,315 1,320 
Core deposit intangible amortization816 843 844 844 872 
Merger related expenses305 — — — — 
Other losses228 371 297 515 16 
Other expense2,901 4,201 3,527 3,684 3,936 
Total non-interest expense$39,306 $44,935 $39,272 $37,522 $37,107 

Total non-interest expense was $39.3 million in the first quarter of 2025, compared with $44.9 million in the fourth quarter of 2024. The current period included $0.3 million of direct expenses related to the sale of the mortgage warehouse business. The decrease in non-interest expense during the first quarter of 2025 when compared with the prior period was primarily driven by a $3.2 million decrease in salaries and employee benefits expense, which is attributable to expenses incurred in the fourth quarter of 2024 related to the termination of legacy compensation and benefits programs that did not recur in the current period, and lower incentive compensation expense. Additionally, outside services and consultants expense decreased by $1.2 million, partially attributable to expense related to specific corporate initiatives in the fourth quarter of 2024 that did not recur in the current period. Other expenses decreased $1.3 million, partially attributable to a decrease in marketing expense.

Income Taxes

Horizon recorded a net tax expense of $4.1 million for the first quarter of 2025, representing an effective tax rate of 14.8%. Net tax expense in the fourth quarter of 2024 was impacted by the realized securities loss and the reversal of the $5.2 million tax valuation allowance.

Balance Sheet Highlights

Total assets decreased by $175.5 million, or 2.2%, to $7.6 billion as of March 31, 2025, from $7.8 billion as of December 31, 2024. The decrease in total assets is primarily due to the sale of the mortgage warehouse portfolio and a decrease in interest-bearing cash related to the payoff of FHLB advances and deposit outflows.

Total investment securities decreased by $26.1 million, or 1.2%, to $2.1 billion as of March 31, 2025.

Total loans were $4.9 billion at March 31, 2025, a decrease of $1.6 million from December 31, 2024 balances. The decrease is primarily due to the sale of the mortgage warehouse business during the quarter, which was offset by continued organic commercial loan growth.

Total deposits increased by $165.1 million, or 2.9%, to $5.8 billion as of March 31, 2025 when compared to balances as of December 31, 2024. Time deposits increased by $155.9 million, or 14.3% during the quarter, while non-interest bearing deposits grew by $62.5 million, or 5.9%. Total borrowings decreased by $330.1 million during the quarter, to $812.2 million as of March 31, 2025, due to the pay down of FHLB advances. Balances subject to repurchase agreements declined by $2.1 million, to $87.9 million.
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Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended March 31, 2025:

For the Quarter EndedMarch 31,December 31,September 30,June 30,
2025*202420242024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)14.28 %13.91 %13.45 %13.41 %
Tier 1 capital (to risk-weighted assets)12.35 12.00 11.63 11.59 
Common equity tier 1 capital (to risk-weighted assets)11.34 11.00 10.68 10.63 
Tier 1 capital (to average assets)9.25 8.88 9.02 9.02 
*Preliminary estimate - may be subject to change

As of March 31, 2025, the ratio of total stockholders’ equity to total assets is 10.18%. Book value per common share was $17.72, increasing $0.26 during the first quarter of 2025.

Tangible common equity1 totaled $611.4 million at March 31, 2025, and the ratio of tangible common equity to tangible assets1 was 8.20% at March 31, 2025, up from 7.83% at December 31, 2024. Tangible book value, which excludes intangible assets from total equity, per common share1 was $13.96, increasing $0.28 during the first quarter of 2025 behind the growth in retained earnings.

Credit Quality

As of March 31, 2025, total non-accrual loans increased by $3.0 million, or 12%, from December 31, 2024, to 0.59% of total loans HFI. Total non-performing assets increased $4.0 million, or 15%, to $31.4 million, compared to $27.4 million as of December 31, 2024. The ratio of non-performing assets to total assets increased to 0.41% compared to 0.35% as of December 31, 2024.

As of March 31, 2025, net charge-offs increased by $0.2 million to $0.9 million, compared to $0.6 million as of December 31, 2024 and remain just 0.07% annualized of average loans.

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
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Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Earnings Conference Call

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

Participants may access the live conference call on April 24, 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 May 2, 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 6313653.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $8 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. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. 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 the purchase accounting impacts and one-time costs of acquisitions 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.

















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Horizon Bancorp, Inc. Reports First Quarter 2025 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: 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.
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Horizon Bancorp, Inc. Reports First Quarter 2025 Results

Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20252024202420242024
Interest Income
Interest and fees on loans$74,457 $76,747 $75,488 $71,880 $66,954 
Investment securities - taxable6,039 6,814 8,133 7,986 7,362 
Investment securities - tax-exempt6,192 6,301 6,310 6,377 6,451 
Other2,487 3,488 957 738 4,497 
Total interest income89,175 93,350 90,888 86,981 85,264 
Interest Expense
Deposits25,601 27,818 30,787 28,447 27,990 
Short and long-term borrowings9,188 10,656 11,131 11,213 11,930 
Subordinated notes829 829 830 829 831 
Junior subordinated debentures issued to capital trusts1,290 920 1,230 1,213 1,225 
Total interest expense36,908 40,223 43,978 41,702 41,976 
Net Interest Income52,267 53,127 46,910 45,279 43,288 
Provision for loan losses1,376 1,171 1,044 2,369 805 
Net Interest Income after Credit Loss Expense50,891 51,956 45,866 42,910 42,483 
Non-interest Income
Service charges on deposit accounts3,208 3,276 3,320 3,130 3,214 
Wire transfer fees71 124 123 113 101 
Interchange fees3,241 3,353 3,511 3,826 3,109 
Fiduciary activities1,326 1,313 1,394 1,372 1,315 
Loss on sale of investment securities(407)(39,140)— — — 
Gain on sale of mortgage loans1,076 1,071 1,622 896 626 
Mortgage servicing income net of impairment385 376 412 450 439 
Increase in cash value of bank owned life insurance335 335 349 318 298 
Other income7,264 338 780 380 827 
Total non-interest (loss) income16,499 (28,954)11,511 10,485 9,929 
Non-interest Expense
Salaries and employee benefits22,414 25,564 21,829 20,583 20,268 
Net occupancy expenses3,702 3,431 3,207 3,192 3,546 
Data processing2,872 2,841 2,977 2,579 2,464 
Professional fees826 736 676 714 607 
Outside services and consultants3,265 4,470 3,677 3,058 3,359 
Loan expense689 1,285 1,034 1,038 719 
FDIC insurance expense1,288 1,193 1,204 1,315 1,320 
Core deposit intangible amortization816 843 844 844 872 
Merger related expenses305 — — — — 
Other losses228 371 297 515 16 
Other expense2,901 4,201 3,527 3,684 3,936 
Total non-interest expense39,306 44,935 39,272 37,522 37,107 
Income (Loss) Before Income Taxes28,084 (21,933)18,105 15,873 15,305 
Income tax expense (benefit)4,141 (11,051)(75)1,733 1,314 
Net Income (Loss)$23,943 $(10,882)$18,180 $14,140 $13,991 
Basic Earnings (Loss) Per Share$0.55 $(0.25)$0.42 $0.32 $0.32 
Diluted Earnings (Loss) Per Share0.54 (0.25)0.41 0.32 0.32 


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Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Condensed Consolidated Balance Sheet
(Dollar in Thousands)
Three Months Ended for the Period
March 31,
2025		December 31,
2024		September 30,
2024		June 30,
2024		March 31,
2024
Assets
Interest earning assets
Federal funds sold$— $— $113,912 $34,453 $161,704 
Interest-bearing deposits in banks80,023 201,131 12,107 4,957 9,178 
Interest earning time deposits— 735 735 1,715 1,715 
Federal Home Loan Bank stock45,412 53,826 53,826 53,826 53,826 
Investment securities, available for sale231,431 233,677 541,170 527,054 535,319 
Investment securities, held to maturity1,843,851 1,867,690 1,888,379 1,904,281 1,925,725 
Loans held for sale3,253 67,597 2,069 2,440 922 
Gross loans held for investment (HFI)4,909,815 4,847,040 4,803,996 4,822,840 4,618,175 
Total Interest earning assets7,113,785 7,271,696 7,416,194 7,351,566 7,306,564 
Non-interest earning assets
Allowance for credit losses(52,654)(51,980)(52,881)(52,215)(50,387)
Cash and due from banks89,643 92,300 108,815 106,691 100,206 
Cash value of life insurance37,409 37,450 37,115 36,773 36,455 
Other assets140,672 152,635 119,026 165,656 160,593 
Goodwill155,211 155,211 155,211 155,211 155,211 
Other intangible assets9,407 10,223 11,067 11,910 12,754 
Premises and equipment, net93,499 93,864 93,544 93,695 94,303 
Interest receivable38,663 39,747 39,366 43,240 40,008 
Total non-interest earning assets511,850 529,450 511,263 560,961 549,143 
Total assets$7,625,635 $7,801,146 $7,927,457 $7,912,527 $7,855,707 
Liabilities
Savings and money market deposits$3,393,371 $3,446,681 $3,420,827 $3,364,726 $3,350,673 
Time deposits1,245,088 1,089,153 1,220,653 1,178,389 1,136,121 
Short and long-term borrowings812,218 1,142,340 1,142,744 1,229,165 1,219,812 
Repurchase agreements87,851 89,912 122,399 128,169 139,309 
Subordinated notes55,772 55,738 55,703 55,668 55,634 
Junior subordinated debentures issued to capital trusts57,531 57,477 57,423 57,369 57,315 
Total interest earning liabilities5,651,831 5,881,301 6,019,749 6,013,486 5,958,864 
Non-interest bearing deposits1,127,324 1,064,818 1,085,535 1,087,040 1,093,076 
Interest payable11,441 11,137 11,400 11,240 7,853 
Other liabilities58,978 80,308 55,951 74,096 74,664 
Total liabilities6,849,574 7,037,564 7,172,635 7,185,862 7,134,457 
Stockholders’ Equity
Preferred stock— — — — — 
Common stock— — — — — 
Additional paid-in capital360,522 363,761 358,453 357,673 356,599 
Retained earnings452,945 436,122 454,050 442,977 435,927 
Accumulated other comprehensive loss(37,406)(36,301)(57,681)(73,985)(71,276)
Total stockholders’ equity776,061 763,582 754,822 726,665 721,250 
Total liabilities and stockholders’ equity$7,625,635 $7,801,146 $7,927,457 $7,912,527 $7,855,707 
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Horizon Bancorp, Inc. Reports First Quarter 2025 Results


Loans and Deposits
(Dollars in Thousands)
March 31,December 31,September 30,June 30,March 31,% Change
20252024202420242024Q1'25 vs Q4'24Q1'25 vs Q1'24
Loans:
Commercial real estate$2,262,910 $2,202,858 $2,105,459 $2,117,772 $1,984,723 3 %14 %
Commercial & Industrial918,541 875,297 808,600 786,788 765,043 5 %20 %
Total commercial3,181,451 3,078,155 2,914,059 2,904,560 2,749,766 3 %16 %
Residential Real estate801,726 802,909 801,356 797,956 782,071 — %3 %
Mortgage warehouse— — 80,437 68,917 56,548 — %(100)%
Consumer926,638 965,976 1,008,144 1,051,407 1,029,790 (4)%(10)%
Total loans held for investment4,909,815 4,847,040 4,803,996 4,822,840 4,618,175 1 %6 %
Loans held for sale3,253 67,597 2,069 2,440 922 (95)%253 %
Total loans$4,913,068 $4,914,637 $4,806,065 $4,825,280 $4,619,097 — %6 %
Deposits:
Interest-bearing demand deposits$1,713,991 $1,767,983 $1,688,998 $1,653,508 $1,613,806 (3)%6 %
Savings and money market deposits1,679,380 1,678,697 1,731,830 1,711,218 1,736,866 — %(3)%
Time deposits1,245,088 1,089,153 1,220,653 1,178,389 1,136,121 14 %10 %
Total Interest bearing deposits4,638,459 4,535,833 4,641,481 4,543,115 4,486,793 2 %3 %
Non-interest bearing deposits
Non-interest bearing deposits1,127,324 1,064,819 1,085,534 1,087,040 1,093,077 6 %3 %
Total deposits$5,765,783 $5,600,652 $5,727,015 $5,630,155 $5,579,870 3 %3 %








11
Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Average Balance Sheet
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31, 2025December 31, 2024March 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-bearing deposits in banks$223,148 $2,487 4.52 %$290,693 $3,488 4.77 %$331,083 4,497 5.46 %
Federal Home Loan Bank stock51,769 1,012 7.93 %53,826 1,516 11.20 %37,949 784 8.31 %
Investment securities - taxable (1)
974,109 5,027 2.09 %1,079,377 5,298 1.95 %1,326,246 6,578 1.99 %
Investment securities - non-taxable (1)
1,120,249 7,838 2.84 %1,129,622 7,976 2.81 %1,149,957 8,166 2.86 %
  Total investment securities2,094,358 12,865 2.49 %2,208,999 13,274 2.39 %2,476,203 14,744 2.39 %
Loans receivable (2) (3)
4,865,449 74,840 6.24 %4,842,660 77,142 6.34 %4,448,324 67,307 6.09 %
Total interest earning assets7,234,724 91,204 5.11 %7,396,178 95,420 5.13 %7,293,559 87,332 4.82 %
Non-interest earning assets
Cash and due from banks88,624 85,776 105,795 
Allowance for credit losses(51,863)(52,697)(49,960)
Other assets483,765 409,332 486,652 
Total average assets$7,755,250 $7,838,589 $7,836,046 
Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest-bearing demand deposits$1,750,446 $6,491 1.50 %$1,716,598 $6,861 1.59 %$1,658,709 $6,516 1.58 %
Savings and money market deposits1,674,590 8,263 2.00 %1,701,012 9,336 2.18 %1,664,518 9,373 2.26 %
Time deposits1,212,386 10,847 3.63 %1,160,527 11,621 3.98 %1,176,921 12,101 4.14 %
Total interest bearing deposits4,637,422 25,601 2.24 %4,578,137 27,818 2.42 %4,500,148 27,990 2.50 %
Borrowings971,496 8,772 3.66 %1,130,301 10,138 3.57 %1,200,728 10,904 3.65 %
Repurchase agreements88,469 416 1.91 %91,960 518 2.24 %138,052 1,026 2.99 %
Subordinated notes55,750 829 6.03 %55,717 829 5.92 %55,558 831 6.02 %
Junior subordinated debentures issued to capital trusts57,497 1,290 9.10 %57,443 920 6.37 %57,279 1,225 8.60 %
Total interest bearing liabilities5,810,634 36,908 2.58 %5,913,558 40,223 2.71 %5,951,765 41,976 2.84 %
Non-interest bearing liabilities
Demand deposits1,085,826 1,099,574 1,077,183 
Accrued interest payable and other liabilities78,521 70,117 82,015 
Stockholders' equity780,269 755,340 725,083 
Total average liabilities and stockholders' equity$7,755,250 $7,838,589 $7,836,046 
Net FTE interest income (non-GAAP) (5)
$54,296 $55,197 $45,356 
Less FTE adjustments (4)
2,029 2,070 2,068 
Net Interest Income$52,267 $53,127 $43,288 
Net FTE interest margin (Non-GAAP) (4)(5)
3.04 %2.97 %2.50 %
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
(2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
(6) Includes dividend income on Federal Home Loan Bank stock
12
Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Credit Quality
(Dollars in Thousands Except Ratios)
Quarter Ended
March 31,December 31,September 30,June 30,March 31,% Change
202520242024202420241Q25 vs 4Q241Q25 vs 1Q24
Non-accrual loans
Commercial$8,172 $5,658 $6,830 $4,321 $5,493 44 %49 %
Residential Real estate12,763 11,215 9,529 8,489 8,725 14 %46 %
Mortgage warehouse— — — — — — %— %
Consumer7,875 8,919 7,208 5,453 4,835 (12)%63 %
Total non-accrual loans28,810 25,792 23,567 18,263 19,053 12 %22 %
90 days and greater delinquent - accruing interest1,582 1,166 819 1,039 108 36 %1365 %
Total non-performing loans$30,392 $26,958 $24,386 $19,302 $19,161 13 %59 %
Other real estate owned
Commercial360 407 1,158 1,111 1,124 (12)%(68)%
Residential Real estate641 — — — — — %— %
Mortgage warehouse— — — — — — %— %
Consumer34 17 36 57 50 98 %(32)%
Total other real estate owned1,035 424 1,194 1,168 1,174 144 %(12)%
Total non-performing assets$31,427 $27,382 $25,580 $20,470 $20,335 14.8 %55 %
Loan data:
Accruing 30 to 89 days past due loans$19,034 $23,075$18,087 $19,785 $15,154 (18)%26 %
Substandard loans66,714 64,53559,775 51,221 47,469 3 %41 %
Net charge-offs (recoveries)
Commercial$(47)$(32)$(52)$57 $(171)(47)%73 %
Residential Real estate(47)(10)(9)(4)(5)(370)%(840)%
Mortgage warehouse— — — — — — %— %
Consumer963 668 439 534 488 44 %97 %
Total net charge-offs$869 $626 $378 $587 $312 39 %179 %
Allowance for credit losses
Commercial$32,640 $30,953 $32,854 $31,941 $30,514 5 %7 %
Residential Real estate3,167 2,715 2,675 2,588 2,655 17 %19 %
Mortgage warehouse— — 862 736 659 — %(100)%
Consumer16,847 18,312 16,490 16,950 16,559 (8)%2 %
Total allowance for credit losses$52,654 $51,980 $52,881 $52,215 $50,387 1 %4 %
Credit quality ratios
Non-accrual loans to HFI loans0.59 %0.53 %0.49 %0.38 %0.41 %
Non-performing assets to total assets0.41 %0.35 %0.32 %0.26 %0.26 %
Annualized net charge-offs of average total loans0.07 %0.05 %0.03 %0.05 %0.04 %
Allowance for credit losses to HFI loans1.07 %1.07 %1.10 %1.08 %1.09 %
13
Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20252024202420242024
Interest income (GAAP)(A)$89,175 $93,350 $90,888 $86,981 $85,264 
Taxable-equivalent adjustment:
   Investment securities - tax exempt (1)
1,646 1,675 1,677 1,695 1,715 
   Loan receivable (2)
383 395 340 328 353 
Interest income (non-GAAP)(B)91,204 95,420 92,905 89,004 87,332 
Interest expense (GAAP)(C)36,908 40,223 43,978 41,702 41,976 
Net interest income (GAAP)(D) =(A) - (C)$52,267 $53,127 $46,910 $45,279 $43,288 
Net FTE interest income (non-GAAP)(E) = (B) - (C)$54,296 $55,197 $48,927 $47,302 $45,356 
Average interest earning assets(F)7,234,724 7,396,178 7,330,263 7,212,788 7,293,559 
Net FTE interest margin (non-GAAP)(G) = (E*) / (F)3.04 %2.97 %2.66 %2.64 %2.50 %
(1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
(2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized
Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20252024202420242024
Net income (loss) (GAAP)(A)$23,943 $(10,882)$18,180 $14,140 $13,991 
Average stockholders' equity(B)$780,269 $755,340 $738,372 $726,332 $725,083 
Average intangible assets(C)165,138 165,973 166,819 167,659 168,519 
Average tangible equity (Non-GAAP)(D) = (B) - (C)$615,131 $589,367 $571,553 $558,673 $556,564 
Return on average tangible common equity ("ROACE") (non-GAAP)(E) = (A*) / (D)15.79 %(7.35)%12.65 %10.18 %10.11 %
*Annualized
Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20252024202420242024
Total stockholders' equity (GAAP)(A)$776,061 $763,582 $754,822 $726,665 $721,250 
Intangible assets (end of period)(B)164,618 165,434 166,278 167,121 167,965 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$611,443 $598,148 $588,544 $559,544 $553,285 
Total assets (GAAP)(D)$7,625,635 $7,801,146 $7,927,457 $7,912,527 $7,855,707 
Intangible assets (end of period)(B)164,618 165,434 166,278 167,121 167,965 
Total tangible assets (non-GAAP)(E) = (D) - (B)$7,461,017 $7,635,712 $7,761,179 $7,745,406 $7,687,742 
Tangible common equity to tangible assets (Non-GAAP)(G) = (C) / (E)8.20 %7.83 %7.58 %7.22 %7.20 %
14
Horizon Bancorp, Inc. Reports First Quarter 2025 Results
Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20252024202420242024
Total stockholders' equity (GAAP)(A)$776,061 $763,582 $754,822 $726,665 $721,250 
Intangible assets (end of period)(B)164,618 165,434 166,278 167,121 167,965 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$611,443 $598,148 $588,544 $559,544 $553,285 
Common shares outstanding(D)43,785,932 43,722,086 43,712,059 43,712,059 43,726,380 
Tangible book value per common share (non-GAAP)(E) = (C) / (D)$13.96 $13.68 $13.46 $12.80 $12.65 
15