GICS Sector : Financial Services
Horizon Bancorp, Inc.operates as the bank holding company for Horizon Bank that provides a range of commercial and retail banking services.The company offers various deposits.
Horizon Bancorp reported a net interest margin expansion of 110 basis points from Q4 2023, with a net interest margin of 4.2% to 4.3% expected by the end of 2025 and through 2026. The company's earnings per share (EPS) came in at $0.3, below analyst estimates of $0.46. Revenue growth is expected to be 9.4% next year, indicating a positive outlook. The company's financial performance demonstrates top-tier financial metrics, with a strong commercial loan growth and a well-executed balance sheet restructuring.
Publication Date: Oct -28
The company's balance sheet restructuring effort has exceeded initial expectations, with a more liquid and lower-risk securities portfolio. The net loans held for investment decreased by $162 million in the quarter, driven by a $210 million combined impact of quarterly runoff and sale of indirect auto loans. Commercial loans continued to be the primary lending focus, with a net growth of $58 million in the quarter.
The deposit portfolio displayed strength, with noninterest balances remaining resilient. The company's credit quality remained excellent, with a strong commercial credit profile and a modest number of nonperforming loans. The indirect auto loan portfolio, which previously drove a significant portion of charge-offs, has been exited, enhancing the overall credit profile.
Using relevant valuation metrics for banks, the Price-to-Tangible Book Value (P/TBV) is not directly available, but the Price-to-Book Ratio (P/B Ratio) is 1.16. The Net Interest Margin (NIM) is expected to remain in the range of 4.2% to 4.3%. The Dividend Yield is 3.94%, indicating a relatively attractive yield for investors. With a strong outlook for 2026, driven by steady loan growth and potential M&A activity, the company's prospects appear positive.
Horizon expects to have steady loan growth in 2026, driven by organic growth and potential M&A activity. The company has a strong team in place and does not plan to add significant staff to support growth. The growth rate in the core franchise was solid in '25, with commercial growth in the low double digits on a consistent basis. Moving into '26, the company anticipates mid-single-digit growth, driven by lending options and a disciplined credit profile.
Intech Investment Management LLC Decreases Stock Position in Horizon Bancorp (IN) $HBNC
Dec -01
Creative Planning Acquires 53,924 Shares of Horizon Bancorp (IN) $HBNC
Nov -27
Horizon Bancorp: Attractive Given A Transformed Balance Sheet
Nov -22
Connor Clark & Lunn Investment Management Ltd. Has $2.06 Million Stake in Horizon Bancorp (IN) $HBNC
Nov -17
Horizon Bancorp Inc. IN Purchases 3,556 Shares of Apple Inc. $AAPL
Nov -05
Horizon Bancorp Inc. IN Buys 484 Shares of Microsoft Corporation $MSFT
Nov -04
Horizon Bancorp Inc. IN Sells 637 Shares of NVIDIA Corporation $NVDA
Oct -31
Best Income Stocks to Buy for Oct. 29th
Oct -29
Horizon Bancorp, Inc.'s 14% commercial banking growth is driven by strategic acquisitions, expansion into new markets, and a strong loan pipeline. Additionally, the bank's focus on relationship-based banking, competitive pricing, and efficient operations have contributed to its growth. Furthermore, a favorable interest rate environment and a growing demand for commercial loans have also supported the segment's growth.
Horizon Bancorp offers a range of commercial loan products to support businesses of all sizes, including lines of credit, term loans, and construction loans.
Horizon Bancorp offers personal loans, home equity loans, and credit cards to individuals for various purposes, such as debt consolidation, home improvements, or major purchases.
Horizon Bancorp offers a range of mortgage loan products, including fixed-rate and adjustable-rate mortgages, government-backed loans, and construction loans.
Horizon Bancorp offers a range of deposit accounts, including checking, savings, money market, and certificate of deposit (CD) accounts.
Horizon Bancorp offers treasury management services, including cash management, wire transfer, and account reconciliation services, to help businesses manage their cash flow and optimize financial performance.
Horizon Bancorp offers wealth management services, including investment management, trust services, and retirement planning, to help individuals and businesses achieve their long-term financial goals.
Horizon Bancorp, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the complexity and specialization of banking services.
Horizon Bancorp, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often tailored to specific customer needs, making it difficult for customers to switch to competitors.
Horizon Bancorp, Inc. is a significant player in the banking industry, which gives it bargaining power over its suppliers. The company's suppliers are often smaller and more dependent on Horizon Bancorp, Inc. for business, reducing their bargaining power.
The banking industry has significant barriers to entry, including regulatory hurdles and high capital requirements. This makes it difficult for new entrants to compete with established players like Horizon Bancorp, Inc.
The banking industry is highly competitive, with many established players competing for market share. Horizon Bancorp, Inc. faces intense competition from larger banks and fintech companies, which can erode its market share and profitability.
| Value | |
|---|---|
| Debt Weight | 67.10% |
| Debt Cost | 3.95% |
| Equity Weight | 32.90% |
| Equity Cost | 9.07% |
| WACC | 5.63% |
| Leverage | 203.93% |
Value: 6.6
Growth: 5.8
Quality: 6.4
Yield: 2.0
Momentum: 7.5
Volatility: 8.0
1-Year Total Return ->
Value: 7.6
Growth: 3.0
Quality: 4.7
Yield: 8.0
Momentum: 6.0
Volatility: 6.3
1-Year Total Return ->
Value: 4.8
Growth: 4.9
Quality: 6.8
Yield: 4.0
Momentum: 8.0
Volatility: 7.0
1-Year Total Return ->
Value: 7.7
Growth: 5.7
Quality: 4.1
Yield: 0.0
Momentum: 7.5
Volatility: 9.7
1-Year Total Return ->
Value: 6.0
Growth: 8.3
Quality: 6.2
Yield: 0.0
Momentum: 2.0
Volatility: 5.0
1-Year Total Return ->
Value: 4.0
Growth: 2.4
Quality: 5.8
Yield: 3.0
Momentum: 5.0
Volatility: 2.3
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