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Jun 30, 2025
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%.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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