Horizon Bancorp (HBNC) investor relations material

Executive summary

• Achieved strong profitability in Q2 2026, with net income of $24.9 million ($0.49 per diluted share), annualized ROA of 1.54%, and ROTCE of 18.05%, despite a $3.1 million legal charge impacting non-interest expense.

• Commercial loan growth led total loans up $83 million (6.6% annualized), with commercial and industrial loans up $63.5 million (7.4% annualized).

• Asset quality remained excellent, with net charge-offs at 0.05% annualized and stable non-performing asset levels.

• Loans and deposits grew by $83 million and $125 million, respectively, in the first half of 2026, supporting mid-single digit organic growth.

• Underlying performance was strong, with robust net interest margin expansion and solid fee income.

Financial highlights

• Net interest margin expanded to 4.37% in Q2 2026, up from 4.29% in Q1 and 3.23% in Q2 2025, driven by higher loan yields and favorable asset mix.

• Net interest income rose to $63.5 million, up 14.7% year-over-year; non-interest income grew 10% year-over-year, led by fiduciary and mortgage-related activities.

• Non-interest expense was $43.8 million, including the $3.1 million legal charge; efficiency ratio at 58.07%.

• CET1 capital ratio increased to 11.09%; total risk-based capital at 15.01%.

• Book value per share increased to $14.21; tangible book value per share rose to $11.06.

Outlook and guidance

• Net interest margin expected to remain in the 4.3%-4.35% range for H2 2026; non-FTE net interest income anticipated to grow in the low teens year-over-year.

• Loan and deposit balances projected to grow mid-single digits for the year, with balanced growth expected in H2.

• Non-interest income forecasted in the mid-$40 million range; non-interest expense in the low to mid-$160 million range, excluding the Q2 legal charge.

• Management expects continued resiliency in profitability metrics despite interest rate shifts.

• Guidance assumes one 25-basis-point Fed rate hike in October.