Horizon Bancorp (HBNC) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 results showed a strong rebound, with net income of $26.9 million ($0.53 per diluted share) and annualized ROAA of 1.63% and ROAE of 15.71%, both peer-leading metrics.

• Net interest margin expanded for the ninth consecutive quarter, reaching 4.29%.

• Commercial loan growth was strong at 9%–9.1% annualized, with a focus on high-quality, diversified portfolios.

• Maintained a conservative credit profile with low non-performing assets and net charge-offs.

• The franchise enters 2026 from a position of strength, focused on sustainable, profitable growth and peer-leading capital generation.

Financial highlights

• Net interest income rose to $63.5 million in Q4 2025, up 8.7% sequentially and 19.5% year-over-year.

• Total loans reached $4.9 billion at year-end, up $60.7 million from Q3; commercial loans grew $76 million.

• Non-interest income was $11.5 million, up 7% year-over-year, with wealth management and mortgage fees up 19% and 14%, respectively.

• Non-interest expense was $40.6 million, including a $0.7 million subordinated note expense write-off.

• Book value per share increased to $13.50, and tangible book value per share rose to $10.32.

Outlook and guidance

• 2026 guidance projects mid-single-digit growth in loans and deposits, with deposit growth to modestly outpace loans.

• Net interest margin expected in the 4.25%-4.35% range, with non-FTE net interest income to grow in the low teens year-over-year.

• Non-interest income and expenses forecasted in the mid-$40 million and mid-$160 million ranges, respectively.

• Effective tax rate expected between 18%-20%.

• Management expects to maintain top-tier profitability and durable earnings in 2026, supported by disciplined commercial loan growth.