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 robust fourth quarter, with annualized return on average assets above 1.6% and return on average equity approaching 16%. The net interest margin expanded to 4.29%, exceeding the upper end of the guidance range. Earnings per share came in at $0.53, beating estimates of $0.5. Revenue growth is expected to be around 5.1% in 2026, driven by mid-single digit growth in period-end loans and deposit balances.
Publication Date: Mar -06
Total loans grew by $60.7 million to $4.9 billion, with commercial loans increasing by $76 million, representing 9% annualized growth. The loan portfolio mix remains well-balanced, with 28% in commercial and industrial and 72% in commercial real estate. Credit quality remains strong, with non-performing assets increasing modestly from a low base. As Lynn Kerber noted, "We're starting from a low base, and our overall metrics are still strong."
The deposit portfolio remains stable and granular, with a reduced exposure to high-cost transactional deposits. The net interest margin expansion was driven by new originations with yields above 6.5% and cash flows coming off the portfolio below 6%. John Stewart mentioned that deposit growth and core deposit generation will be key drivers of the margin.
For 2026, Horizon expects mid-single digit growth in loans and deposits, with non-FTE net interest income growing in the low teens. Fee income is expected to be around $40 million, and expenses are expected to be around $160 million. With a Price-to-Tangible Book Value (P/TBV) of approximately 1.24, and a Dividend Yield of 3.83%, the stock appears reasonably valued. The expected growth and peer-leading returns on assets and tangible common equity should support the stock's valuation.
Horizon remains focused on supporting growth through organic business expansion, with a strong commercial loan pipeline and a disciplined approach to capital decisions. The company is also exploring opportunities to add to its treasury management team. With a solid capital position and a derisked balance sheet, Horizon is well-positioned for steady growth and durable returns.
Horizon Bancorp (IN) (HBNC) to Release Quarterly Earnings on Wednesday
Apr -15
Deprince Race & Zollo Inc. Purchases 40,913 Shares of Horizon Bancorp (IN) $HBNC
Apr -14
Horizon Bancorp, Inc. Announces Conference Call to Review First Quarter Results on April 23
Apr -01
Horizon Bancorp (IN) (NASDAQ:HBNC) Given Average Recommendation of “Hold” by Analysts
Mar -29
Head to Head Analysis: Eastern Bankshares (NASDAQ:EBC) versus Horizon Bancorp (IN) (NASDAQ:HBNC)
Mar -07
Horizon Bancorp (IN) (NASDAQ:HBNC) Receives Average Recommendation of “Hold” from Brokerages
Mar -04
Jupiter Asset Management Ltd. Invests $684,000 in Horizon Bancorp (IN) $HBNC
Feb -23
Horizon Bancorp (IN) (NASDAQ:HBNC) Short Interest Down 14.9% in January
Feb -16
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: 4.8
Growth: 4.8
Quality: 7.8
Yield: 4.0
Momentum: 7.0
Volatility: 7.0
1-Year Total Return ->
Value: 7.3
Growth: 5.8
Quality: 5.8
Yield: 2.0
Momentum: 5.0
Volatility: 8.0
1-Year Total Return ->
Value: 7.3
Growth: 3.0
Quality: 4.9
Yield: 8.0
Momentum: 4.0
Volatility: 6.7
1-Year Total Return ->
Value: 7.9
Growth: 5.7
Quality: 3.9
Yield: 0.0
Momentum: 5.5
Volatility: 9.7
1-Year Total Return ->
Value: 6.0
Growth: 8.3
Quality: 6.4
Yield: 0.0
Momentum: 2.5
Volatility: 5.0
1-Year Total Return ->
Value: 3.1
Growth: 2.4
Quality: 5.8
Yield: 3.0
Momentum: 6.0
Volatility: 2.3
1-Year Total Return ->