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Jun 30
Horizon Bancorp Q2 2025 Earnings Report
Horizon Bancorp reported strong second quarter 2025 results, driven by continued net interest margin expansion.
Key Takeaways
Horizon Bancorp delivered robust financial results in the second quarter of 2025, with net income reaching $20.6 million and diluted EPS of $0.47. The company experienced its seventh consecutive quarter of net interest margin expansion, reaching 3.23%, alongside strong commercial loan growth and well-managed expenses. Credit quality remained strong with low net charge-offs.
Net interest income increased by 22.3% year-over-year to $55.4 million, driven by net interest margin expansion.
Net interest margin expanded for the seventh consecutive quarter, reaching 3.23% on a fully taxable equivalent basis.
Total loans held for investment increased by 6.2% annualized, with significant organic commercial loan growth of $117.2 million.
Credit quality remained strong, with annualized net charge-offs at 0.02% of average loans and non-performing assets decreasing by 12.4%.
Horizon Bancorp
Horizon Bancorp
Horizon Bancorp Revenue by Segment
Revenue by Segment
Service charges on deposit accounts Revenue
CapyFin.comWire transfer fees Revenue
CapyFin.comInterchange fees Revenue
CapyFin.comFiduciary activities Revenue
CapyFin.comGain on sale of mortgage loans Revenue
CapyFin.comMortgage servicing income Revenue
CapyFin.comIncrease in cash value of bank owned life insurance Revenue
CapyFin.comOther income Revenue
CapyFin.com Forward Guidance
Horizon Bancorp anticipates continued shareholder value creation throughout the remainder of 2025, building on strong first-half results.
Positive Outlook
- Continued net interest margin expansion is expected to drive future earnings.
- Strong loan growth, particularly in commercial loans, is anticipated to persist.
- Stable and granular core funding is expected to support balance sheet efficiency.
- Excellent credit quality and low net charge-offs are projected to continue.
- Prudent management of expenses is expected to maintain an efficient expense base.
Challenges Ahead
- The pre-tax gain from the sale of the mortgage warehouse business in Q1 2025 will not recur.
- Potential for increased provision for credit losses due to loan growth and economic factors.
- Competition in the banking sector could impact future growth.
- Economic uncertainties may affect loan demand and credit quality.
- Regulatory changes could impact financial performance.