Horizon Bancorp (HBNC) Q1 2026 earnings summary

Executive summary

• First quarter 2026 delivered strong profitability with annualized ROAA at 1.62% and ROATCE at 19.02%, supported by a stable net interest margin of 4.29%.

• Net income rose to $26.2 million ($0.51 per diluted share), up from $23.9 million in Q1 2025, driven by higher net interest income and lower provision expense.

• Deposit growth was robust at $147 million (11% annualized), with non-interest-bearing deposits increasing by $61 million (23% annualized), balanced across consumer and commercial segments.

• Commercial loan growth reached $34.2 million (4.0% annualized), while residential and consumer loans declined by $32 million due to pricing discipline.

• Asset quality remained strong, with net charge-offs at 0.05% annualized and non-performing assets at 0.67% of total assets.

Financial highlights

• CET1 ratio increased to 10.82%; total risk-based capital improved to 14.77%; tangible common equity to tangible assets at 8.39%.

• Net interest income was $62.2 million, up 19.1% year-over-year, with net interest margin steady at 4.29%.

• Non-interest income was $11.2 million, down year-over-year due to a prior-year gain, but core fee income grew in banking segments.

• Non-interest expense was $40.7 million, up slightly due to higher salaries and occupancy costs, in line with expectations.

• Allowance for credit losses to loans was 1.05%; net charge-offs annualized at 0.05%.

Outlook and guidance

• 2026 guidance unchanged: mid-single-digit growth in loans and deposits, with deposit growth modestly outpacing loans.

• Net interest income expected to grow in the low teens year-over-year; FTE net interest margin guided to 4.25%-4.35%.

• Fee income projected in the mid-$40 million range; expenses to remain in the mid-$160 million range.

• Effective tax rate anticipated at 18%-20%.

• Management confident in full-year outlook, supported by strong lending pipelines and positive deposit trends.