Horizon Bancorp (HBNC) investor relations material

Executive summary

• Q3 ROAA was 1.73%, ROTCE 20.03% and FTE NIM 4.37%; HFI loans grew $47M, or 3.7% annualized, and deposits increased $81M, or 6.0% annualized.

• Q3 net income was $28.7M, or $0.56 per diluted share, versus $24.9M and $0.49 in Q2; Q3’25 recorded a $222.0M net loss.

• Growth emphasized customer relationships, balanced loan production, conservative credit and recurring fee businesses.

Financial highlights

• Net interest income rose 11.6% YoY to $65.2M; FTE net interest income was $66.2M, and FTE NIM held at 4.37% QoQ versus 3.52% a year earlier.

• Non-interest income was $11.9M versus $12.0M QoQ; mortgage and fiduciary activity increased 52% and 8% YoY, respectively.

• Non-interest expense was $40.7M versus $43.8M in Q2, which included a $3.1M legal charge.

• Total assets increased $17.0M, or 0.3%, to $6.6B.

Outlook and guidance

• FY26 period-end HFI loans and deposits are expected to grow at mid-single-digit rates, with loan growth led by high-quality commercial lending.

• Q4 non-FTE net interest income is guided to $66M–$67M; modest FTE NIM expansion assumes one 25 bps Fed hike in early December.

• FY26 non-interest income is expected in the mid-$40M range and non-interest expense in the low-to-mid-$160M range, excluding the Q2 legal charge; Q4 tax rate guidance is 18%–19%.

• Management maintained expectations for mid-single-digit organic growth despite a changed interest-rate outlook, emphasizing relationship-driven lending and strong funding.