Horizon Bancorp (HBNC) investor relations material

Executive summary

• Achieved strong first quarter 2026 performance with annualized ROAA at 1.62% and ROATCE at 19.02%, maintaining top-tier profitability and stable net interest margin at 4.29%.

• Deposit growth was robust at $147 million (11% annualized), with non-interest-bearing deposits increasing by $61 million (23% annualized), balanced across consumer and commercial segments.

• Commercial loan growth reached $34.2 million (4.0% annualized), while residential and consumer loans declined by $32 million due to selective lending and pricing discipline.

• Fee income grew year-over-year in core banking segments, with asset quality remaining strong and net charge-offs at 0.05% annualized.

• Net income was $26.2 million ($0.51 per diluted share), compared to $26.9 million in Q4 2025 and $23.9 million in Q1 2025.

Financial highlights

• CET1 ratio increased to 10.82%; total risk-based capital improved to 14.77%; tangible common equity to tangible assets at 8.39%.

• Net interest income was $62.2 million, up 19.1% year-over-year; net interest margin held steady at 4.29%.

• Non-interest income (excluding prior year one-time items) rose 13% year-over-year, driven by service charges, fiduciary activities, and wealth management.

• Non-interest expense was $40.7 million, in line with expectations, with full-year guidance unchanged at mid-$160 million.

• Allowance for credit losses stable at $51.3 million (1.05% of loans); net charge-offs annualized at 0.05%.

Outlook and guidance

• 2026 guidance unchanged: mid-single-digit growth in loans and deposits, with deposit growth modestly outpacing loans.

• Net interest income expected to grow in the low teens year-over-year; FTE net interest margin guided to 4.25%-4.35%.

• Fee income projected in the mid-$40 million range; expenses to remain in the mid-$160 million range.

• Effective tax rate anticipated at 18%-20%.

• Management confident in full-year outlook, supported by strong lending pipelines and positive deposit trends.