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

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

Michigan City, Indiana, July 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 June 30, 2025.

“Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE", President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company's mortgage warehouse business.

Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.
















1
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results

Second Quarter 2025 Highlights

•Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.

•Total loans held for investment ("HFI") increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.

•Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.

•Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.

•Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management's commitment to generate higher earnings while maintaining a more efficient expense base.


1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
2
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results

Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Income statement:
Net interest income$55,354 $52,267 $53,127 $46,910 $45,279 
Provision for credit loss expense2,462 1,376 1,171 1,044 2,369 
Non-interest income (loss)10,920 16,499 (28,954)11,511 10,485 
Non-interest expense39,417 39,306 44,935 39,272 37,522 
Income tax expense (benefit)3,752 4,141 (11,051)(75)1,733 
Net Income (Loss)$20,643 $23,943 $(10,882)$18,180 $14,140 
Per share data:
Basic earnings (loss) per share$0.47 $0.55 $(0.25)$0.42 $0.32 
Diluted earnings (loss) per share0.47 0.54 (0.25)0.41 0.32 
Cash dividends declared per common share0.16 0.16 0.16 0.16 0.16 
Book value per common share18.06 17.72 17.46 17.27 16.62 
Market value - high15.88 17.76 18.76 16.57 12.74 
Market value - low12.92 15.00 14.57 11.89 11.29 
Weighted average shares outstanding - Basic43,794,490 43,777,109 43,721,211 43,712,059 43,712,059 
Weighted average shares outstanding - Diluted44,034,663 43,954,164 43,721,211 44,112,321 43,987,187 
Common shares outstanding (end of period)43,801,507 43,785,932 43,722,086 43,712,059 43,712,059 
Key ratios:
Return on average assets1.08 %1.25 %(0.56)%0.92 %0.73 %
Return on average stockholders' equity13.24 12.44 (5.73)9.80 7.83 
Total equity to total assets10.34 10.18 9.79 9.52 9.18 
Total loans to deposit ratio87.52 85.21 87.75 83.92 85.70 
Allowance for credit losses to HFI loans1.09 1.07 1.07 1.10 1.08 
Annualized net charge-offs of average total loans (1)
0.02 0.07 0.05 0.03 0.05 
Efficiency ratio59.48 57.16 185.89 67.22 67.29 
Key metrics (Non-GAAP) (2)
Net FTE interest margin3.23 %3.04 %2.97 %2.66 %2.64 %
Return on average tangible common equity13.24 15.79 (7.35)12.65 10.18 
Tangible common equity to tangible assets8.37 8.19 7.83 7.58 7.22 
Tangible book value per common share$14.32 $13.96 $13.68 $13.46 $12.80 
(1) Average total loans includes loans held for investment and held for sale.
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
3
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results
Income Statement Highlights

Net Interest Income

Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company's net FTE interest margin1, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was 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. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

Provision for Credit Losses

During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to 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 second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

Non-Interest Income

For the Quarter EndedJune 30,March 31,December 31,September 30,June 30,
(Dollars in Thousands)20252025202420242024
Non-interest Income
Service charges on deposit accounts$3,208 $3,208 $3,276 $3,320 $3,130 
Wire transfer fees69 71 124 123 113 
Interchange fees3,403 3,241 3,353 3,511 3,826 
Fiduciary activities1,251 1,326 1,313 1,394 1,372 
Loss on sale of investment securities— (407)(39,140)— — 
Gain on sale of mortgage loans1,219 1,076 1,071 1,622 896 
Mortgage servicing income net of impairment375 385 376 412 450 
Increase in cash value of bank owned life insurance346 335 335 349 318 
Other income1,049 7,264 338 780 380 
Total non-interest income (loss)$10,920 $16,499 $(28,954)$11,511 $10,485 

Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company's mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.





1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
4
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results



Non-Interest Expense

For the Quarter EndedJune 30,March 31,December 31,September 30,June 30,
(Dollars in Thousands)20252025202420242024
Non-interest Expense
Salaries and employee benefits$22,731 $22,414 $25,564 $21,829 $20,583 
Net occupancy expenses3,127 3,702 3,431 3,207 3,192 
Data processing2,951 2,872 2,841 2,977 2,579 
Professional fees735 826 736 676 714 
Outside services and consultants3,278 3,265 4,470 3,677 3,058 
Loan expense1,231 689 1,285 1,034 1,038 
FDIC insurance expense1,216 1,288 1,193 1,204 1,315 
Core deposit intangible amortization816 816 843 844 844 
Merger related expenses— 305 — — — 
Other losses245 228 371 297 515 
Other expense3,087 2,901 4,201 3,527 3,684 
Total non-interest expense$39,417 $39,306 $44,935 $39,272 $37,522 

Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.

Income Taxes

Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company's estimated annual effective tax rate.

Balance Sheet Highlights

Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.
5
Horizon Bancorp, Inc. Reports Second 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 June 30, 2025:

For the Quarter EndedJune 30,March 31,December 31,September 30,
2025*202520242024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)14.48 %14.26 %13.91 %13.45 %
Tier 1 capital (to risk-weighted assets)12.52 12.33 12.00 11.63 
Common equity tier 1 capital (to risk-weighted assets)11.52 11.32 11.00 10.68 
Tier 1 capital (to average assets)9.59 9.25 8.88 9.02 
*Preliminary estimate - may be subject to change

As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

Tangible common equity1 totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets1 was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

Credit Quality

As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
6
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results
Earnings Conference Call

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

Participants may access the live conference call on July 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 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 $7.7 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.



















7
Horizon Bancorp, Inc. Reports Second 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.
8
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results

Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Interest Income
Loans receivable$78,618 $74,457 $76,747 $75,488 $71,880 
Investment securities - taxable5,941 6,039 6,814 8,133 7,986 
Investment securities - tax-exempt6,088 6,192 6,301 6,310 6,377 
Other830 2,487 3,488 957 738 
Total interest income91,477 89,175 93,350 90,888 86,981 
Interest Expense
Deposits26,053 25,601 27,818 30,787 28,447 
Borrowed funds8,171 9,188 10,656 11,131 11,213 
Subordinated notes829 829 829 830 829 
Junior subordinated debentures issued to capital trusts1,070 1,290 920 1,230 1,213 
Total interest expense36,123 36,908 40,223 43,978 41,702 
Net Interest Income55,354 52,267 53,127 46,910 45,279 
Provision for credit loss expense2,462 1,376 1,171 1,044 2,369 
Net Interest Income after Provision for Credit Losses52,892 50,891 51,956 45,866 42,910 
Non-interest Income
Service charges on deposit accounts3,208 3,208 3,276 3,320 3,130 
Wire transfer fees69 71 124 123 113 
Interchange fees3,403 3,241 3,353 3,511 3,826 
Fiduciary activities1,251 1,326 1,313 1,394 1,372 
Gains (losses) on sale of investment securities— (407)(39,140)— — 
Gain on sale of mortgage loans1,219 1,076 1,071 1,622 896 
Mortgage servicing income net of impairment375 385 376 412 450 
Increase in cash value of bank owned life insurance346 335 335 349 318 
Other income1,049 7,264 338 780 380 
Total non-interest income (loss)10,920 16,499 (28,954)11,511 10,485 
Non-interest Expense
Salaries and employee benefits22,731 22,414 25,564 21,829 20,583 
Net occupancy expenses3,127 3,702 3,431 3,207 3,192 
Data processing2,951 2,872 2,841 2,977 2,579 
Professional fees735 826 736 676 714 
Outside services and consultants3,278 3,265 4,470 3,677 3,058 
Loan expense1,231 689 1,285 1,034 1,038 
FDIC insurance expense1,216 1,288 1,193 1,204 1,315 
Core deposit intangible amortization816 816 843 844 844 
Merger related expenses— 305 — — — 
Other losses245 228 371 297 515 
Other expense3,087 2,901 4,201 3,527 3,684 
Total non-interest expense39,417 39,306 44,935 39,272 37,522 
Income (Loss) Before Income Taxes24,395 28,084 (21,933)18,105 15,873 
Income tax expense (benefit)3,752 4,141 (11,051)(75)1,733 
Net Income (Loss)$20,643 $23,943 $(10,882)$18,180 $14,140 
Basic Earnings (Loss) Per Share$0.47 $0.55 $(0.25)$0.42 $0.32 
Diluted Earnings (Loss) Per Share0.47 0.54 (0.25)0.41 0.32 


9
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results
Condensed Consolidated Balance Sheet
(Dollars in Thousands, Unaudited)
Three Months Ended for the Period
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Assets
Interest earning assets
Federal funds sold$2,024 $— $— $113,912 $34,453 
Interest earning deposits34,174 80,023 201,131 12,107 4,957 
Interest earning time deposits— — 735 735 1,715 
Federal Home Loan Bank stock45,412 45,412 53,826 53,826 53,826 
Investment securities, available for sale231,999 231,431 233,677 541,170 527,054 
Investment securities, held to maturity1,819,087 1,843,851 1,867,690 1,888,379 1,904,281 
Loans held for sale2,994 3,253 67,597 2,069 2,440 
Gross loans held for investment (HFI)4,985,582 4,909,815 4,847,040 4,803,996 4,822,840 
Total Interest earning assets7,121,272 7,113,784 7,271,696 7,416,194 7,351,566 
Non-interest earning assets
Allowance for credit losses(54,399)(52,654)(51,980)(52,881)(52,215)
Cash101,719 89,643 92,300 108,815 106,691 
Cash value of life insurance37,755 37,409 37,450 37,115 36,773 
Other assets148,773 143,675 152,635 119,026 165,656 
Goodwill155,211 155,211 155,211 155,211 155,211 
Other intangible assets8,592 9,407 10,223 11,067 11,910 
Premises and equipment, net93,398 93,499 93,864 93,544 93,695 
Interest receivable39,730 38,663 39,747 39,366 43,240 
Total non-interest earning assets530,779 514,855 529,450 511,263 560,961 
Total assets$7,652,051 $7,628,639 $7,801,146 $7,927,457 $7,912,526 
Liabilities
Savings and money market deposits$3,385,413 $3,393,371 $3,446,681 $3,420,827 $3,364,726 
Time deposits1,193,180 1,245,088 1,089,153 1,220,653 1,178,389 
Borrowings880,336 812,218 1,142,340 1,142,744 1,229,165 
Repurchase agreements95,089 87,851 89,912 122,399 128,169 
Subordinated notes55,807 55,772 55,738 55,703 55,668 
Junior subordinated debentures issued to capital trusts57,583 57,531 57,477 57,423 57,369 
Total interest earning liabilities5,667,408 5,651,832 5,881,301 6,019,749 6,013,486 
Non-interest bearing deposits1,121,163 1,127,324 1,064,818 1,085,535 1,087,040 
Interest payable14,007 11,441 11,137 11,400 11,240 
Other liabilities58,621 61,981 80,308 55,951 74,096 
Total liabilities6,861,199 6,852,578 7,037,564 7,172,635 7,185,862 
Stockholders’ Equity
Preferred stock— — — — — 
Common stock— — — — — 
Additional paid-in capital360,758 360,522 363,761 358,453 357,673 
Retained earnings466,497 452,945 436,122 454,050 442,977 
Accumulated other comprehensive (loss)(36,403)(37,406)(36,301)(57,681)(73,985)
Total stockholders’ equity790,852 776,061 763,582 754,822 726,665 
Total liabilities and stockholders’ equity$7,652,051 $7,628,639 $7,801,146 $7,927,457 $7,912,527 
10
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results


Loans and Deposits
(Dollars in Thousands, Unaudited)
June 30,March 31,December 31,September 30,June 30,% Change
20252025202420242024Q2'25 vs Q1'25Q2'25 vs Q2'24
Loans:
Commercial real estate$2,321,951 $2,262,910 $2,202,858 $2,105,459 $2,117,772 3 %10 %
Commercial & Industrial976,740 918,541 875,297 808,600 786,788 6 %24 %
Total commercial3,298,691 3,181,451 3,078,155 2,914,059 2,904,560 4 %14 %
Residential Real estate786,026 801,726 802,909 801,356 797,956 (2)%(1)%
Mortgage warehouse— — — 80,437 68,917 — %(100)%
Consumer900,865 926,638 965,976 1,008,144 1,051,407 (3)%(14)%
Total loans held for investment4,985,582 4,909,815 4,847,040 4,803,996 4,822,840 2 %3 %
Loans held for sale2,994 3,253 67,597 2,069 2,440 (8)%23 %
Total loans$4,988,576 $4,913,068 $4,914,637 $4,806,065 $4,825,280 2 %3 %
Deposits:
Interest bearing deposits$1,713,058 $1,713,991 $1,767,983 $1,688,998 $1,653,508 — %4 %
Savings and money market deposits1,672,355 1,679,380 1,678,697 1,731,830 1,711,218 — %(2)%
Time deposits1,193,180 1,245,088 1,089,153 1,220,653 1,178,389 (4)%1 %
Total Interest bearing deposits4,578,593 4,638,459 4,535,833 4,641,481 4,543,115 (1)%1 %
Non-interest bearing deposits
Non-interest bearing deposits1,121,164 1,127,324 1,064,819 1,085,534 1,087,040 (1)%3 %
Total deposits$5,699,757 $5,765,784 $5,600,652 $5,727,015 $5,630,155 (1)%1 %








11
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results
Average Balance Sheet
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30, 2025
March 31, 2025
June 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)$72,993 $830 4.56 %$223,148 $2,487 4.52 %$55,467 $738 5.35 %
Federal Home Loan Bank stock45,412 1,075 9.49 %51,769 1,012 7.93 %53,827 1,521 11.36 %
Investment securities - taxable (1)959,238 4,867 2.03 %974,109 5,027 2.09 %1,309,305 6,465 1.99 %
Investment securities - non-taxable (1)1,100,731 7,706 2.81 %1,120,249 7,838 2.84 %1,132,065 8,072 2.87 %
Total investment securities2,059,969 12,573 2.45 %2,094,358 12,865 2.49 %2,441,370 14,537 2.39 %
Loans receivable (2) (3)4,947,093 79,000 6.41 %4,865,449 74,840 6.24 %4,662,124 72,208 6.23 %
Total interest earning assets7,125,467 93,478 5.26 %7,234,724 91,204 5.11 %7,212,788 89,004 4.96 %
Non-interest earning assets
Cash and due from banks86,316 88,624 108,319 
Allowance for credit losses(52,560)(51,863)(50,334)
Other assets472,175 483,765 508,555 
Total average assets$7,631,398 $7,755,250 $7,779,328 
Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing demand deposits$1,727,713 $6,803 1.58 %$1,750,446 $6,491 1.50 %$1,656,523 $7,081 1.72 %
Saving and money market deposits1,651,866 8,200 1.99 %1,674,590 8,263 2.00 %1,677,967 9,733 2.33 %
Time deposits1,233,582 11,050 3.59 %1,212,386 10,847 3.63 %1,134,590 11,633 4.12 %
Total Deposits4,613,161 26,053 2.27 %4,637,422 25,601 2.24 %4,469,080 28,447 2.56 %
Borrowings847,862 7,777 3.68 %971,496 8,772 3.66 %1,184,172 10,278 3.49 %
Repurchase agreements88,058 394 1.79 %88,469 416 1.91 %125,144 935 3.00 %
Subordinated notes55,785 829 5.96 %55,750 829 6.03 %55,647 829 5.99 %
Junior subordinated debentures issued to capital trusts57,550 1,070 7.46 %57,497 1,290 9.10 %57,335 1,213 8.51 %
Total interest bearing liabilities5,662,416 36,123 2.56 %5,810,634 36,908 2.58 %5,891,378 41,702 2.85 %
Non-interest bearing liabilities
Demand deposits1,114,982 1,085,826 1,080,676 
Accrued interest payable and other liabilities64,465 78,521 80,942 
Stockholders' equity789,535 780,269 726,332 
Total average liabilities and stockholders' equity$7,631,398 $7,755,250 $7,779,328 
Net FTE interest income (non-GAAP) (5)$57,355 $54,296 $47,302 
Less FTE adjustments (4)2,001 2,029 2,023 
Net Interest Income$55,354 $52,267 $45,279 
Net FTE interest margin (Non-GAAP) (4)(5)3.23 %3.04 %2.64 %
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
(2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
(6) Includes dividend income on Federal Home Loan Bank stock
12
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results

Credit Quality
(Dollars in Thousands Except Ratios, Unaudited)
Quarter Ended
June 30,March 31,December 31,September 30,June 30,% Change
20252025202420242024Q2'25 vs Q1'25Q2'25 vs Q2'24
Non-accrual loans
Commercial$7,547 $8,172 $5,658 $6,830 $4,321 (8)%75 %
Residential Real estate9,525 12,763 11,215 9,529 8,489 (25)%12 %
Mortgage warehouse— — — — — — %— %
Consumer7,222 7,875 8,919 7,208 5,453 (8)%32 %
Total non-accrual loans24,294 28,810 25,792 23,567 18,263 (16)%33 %
90 days and greater delinquent - accruing interest2,113 1,582 1,166 819 1,039 34 %103 %
Total non-performing loans$26,407 $30,392 $26,958 $24,386 $19,302 (13)%37 %
Other real estate owned
Commercial$176 $360 $407 $1,158 $1,111 (51)%(84)%
Residential Real estate463 641 — — — — %— %
Mortgage warehouse— — — — — — %— %
Consumer480 34 17 36 57 1311 %742 %
Total other real estate owned1,119 1,035 424 1,194 1,168 8 %(4)%
Total non-performing assets$27,526 $31,427 $27,382 $25,580 $20,470 (12)%34 %
Loan data:
Accruing 30 to 89 days past due loans$31,401 $19,034 $23,075 $18,087 $19,785 65 %59 %
Substandard loans64,100 66,714 64,535 59,775 51,221 (4)%25 %
Net charge-offs (recoveries)
Commercial$84 $(47)$(32)$(52)$57 (279)%47 %
Residential Real estate52 (47)(10)(9)(4)(211)%(1400)%
Mortgage warehouse— — — — — — %— %
Consumer118 963 668 439 534 (88)%(78)%
Total net charge-offs$254 $869 $626 $378 $587 (71)%(57)%
Allowance for credit losses
Commercial$34,413 $32,640 $30,953 $32,854 $31,941 5 %8 %
Residential Real estate3,229 3,167 2,715 2,675 2,588 2 %25 %
Mortgage warehouse— — — 862 736 — %(100)%
Consumer16,757 16,847 18,312 16,490 16,950 (1)%(1)%
Total allowance for credit losses$54,399 $52,654 $51,980 $52,881 $52,215 3 %4 %
Credit quality ratios
Non-accrual loans to HFI loans0.49 %0.59 %0.53 %0.49 %0.38 %
Non-performing assets to total assets0.36 %0.41 %0.35 %0.32 %0.26 %
Annualized net charge-offs of average total loans0.02 %0.07 %0.05 %0.03 %0.05 %
Allowance for credit losses to HFI loans1.09 %1.07 %1.07 %1.10 %1.08 %
13
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results
Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Interest income (GAAP)(A)$91,477 $89,175 $93,350 $90,888 $86,981 
Taxable-equivalent adjustment:
   Investment securities - tax exempt (1)1,619 1,646 1,675 1,677 1,695 
   Loan receivable (2)382 383 395 340 328 
Interest income (non-GAAP)(B)93,478 91,204 95,420 92,905 89,004 
Interest expense (GAAP)(C)36,123 36,908 40,223 43,978 41,702 
Net interest income (GAAP)(D) =(A) - (C)$55,354 $52,267 $53,127 $46,910 $45,279 
Net FTE interest income (non-GAAP)(E) = (B) - (C)$57,355 $54,296 $55,197 $48,927 $47,302 
Average interest earning assets(F)7,125,467 7,234,724 7,396,178 7,330,263 7,212,788 
Net FTE interest margin (non-GAAP)(G) = (E*) / (F)3.23 %3.04 %2.97 %2.66 %2.64 %
(1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
(2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized
Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Net income (loss) (GAAP)(A)$20,643 $23,941 $(10,882)$18,180 $14,140 
Average stockholders' equity(B)$789,535 $780,269 $755,340 $738,372 $726,332 
Average intangible assets(C)164,320 165,138 165,973 166,819 167,659 
Average tangible equity (Non-GAAP)(D) = (B) - (C)$625,215 $615,131 $589,367 $571,553 $558,673 
Return on average tangible common equity ("ROACE") (non-GAAP)(E) = (A*) / (D)13.24 %15.48 %(7.35)%12.65 %10.18 %
*Annualized
Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Total stockholders' equity (GAAP)(A)$790,852 $776,061 $763,582 $754,822 $726,665 
Intangible assets (end of period)(B)163,802 164,618 165,434 166,278 167,121 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$627,050 $611,443 $598,148 $588,544 $559,544 
Total assets (GAAP)(D)$7,652,051 $7,628,636 $7,801,146 $7,927,457 $7,912,527 
Intangible assets (end of period)(B)163,802 164,618 165,434 166,278 167,121 
Total tangible assets (non-GAAP)(E) = (D) - (B)$7,488,249 $7,464,018 $7,635,712 $7,761,179 $7,745,406 
Tangible common equity to tangible assets (Non-GAAP)(G) = (C) / (E)8.37 %8.19 %7.83 %7.58 %7.22 %
14
Horizon Bancorp, Inc. Reports Second Quarter 2025 Results
Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Total stockholders' equity (GAAP)(A)$790,852 $776,061 $763,582 $754,822 $726,665 
Intangible assets (end of period)(B)163,802 164,618 165,434 166,278 167,121 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$627,050 $611,443 $598,148 $588,544 $559,544 
Common shares outstanding(D)43,801,507 43,786,000 43,722,086 43,712,059 43,712,059 
Tangible book value per common share (non-GAAP)(E) = (C) / (D)$14.32 $13.96 $13.68 $13.46 $12.80 
15