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Sep 30
Horizon Bancorp Q3 2025 Earnings Report
Horizon Bancorp reported strong third quarter 2025 results and successful execution of its balance sheet repositioning.
Key Takeaways
Horizon Bancorp reported a net loss of $222.0 million for the third quarter of 2025, or $(4.69) per diluted share, primarily due to a strategic balance sheet repositioning that included a significant loss on the sale of investment securities. Despite the reported loss, the company highlighted strong core community banking performance, with expanding net interest margin, solid commercial loan growth, and excellent credit quality. The balance sheet repositioning is largely complete and is expected to lead to top-tier financial outcomes.
Horizon Bancorp reported a net loss of $222.0 million, or $(4.69) per diluted share, for Q3 2025, primarily due to balance sheet repositioning activities.
Net interest income increased by 24.5% year-over-year to $58.4 million, and net interest margin expanded to 3.52% for the eighth consecutive quarter.
Credit quality remained strong with annualized net charge-offs of 0.07% of average loans and non-performing assets to total assets at 0.53%.
Total assets decreased by $939.6 million to $6.7 billion, driven by the balance sheet repositioning, including a decrease in investment securities and the sale of the indirect auto portfolio.
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.comLoss on sale of investment securities Revenue
CapyFin.comGain on sale of mortgage loans Revenue
CapyFin.comMortgage servicing income net of impairment Revenue
CapyFin.comIncrease in cash value of bank owned life insurance Revenue
CapyFin.comOther income Revenue
CapyFin.com Forward Guidance
Horizon Bancorp expects to continue focusing on profitable growth and smart redeployment of capital to create durable returns and sustainable long-term value for shareholders, following the successful balance sheet repositioning.
Positive Outlook
- Balance sheet repositioning has exceeded initial expectations and is on pace to achieve top-tier financial outcomes.
- Net interest margin is expected to continue expanding.
- Commercial loan engine is producing solid results, indicating continued growth in this segment.
- Core client-driven deposit franchise is growing, providing stable funding.
- Credit quality is excellent and expenses are well managed, supporting future profitability.
Challenges Ahead
- The balance sheet repositioning resulted in a significant net loss for the current quarter.
- Total assets decreased by 12.3% due to repositioning efforts.
- Total loans decreased by $163.0 million, partly due to the sale of the indirect auto portfolio.
- Total deposits decreased by 3.1%, driven by the runoff of high-cost transactional deposit balances.
- Book value per common share declined significantly due to third-quarter balance sheet actions.