Horizon Bancorp, Inc.
- Open
- 20.28
- Day high
- 20.30
- Day low
- 20.06
- Prev close
- 20.30
- Volume
- 663K
- Mkt cap
- $1.0B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 1.5
- P/S
- 10.8
- Yield
- 3.17%
- Per share
- $0.64
- ▲Insiders net buying $24K over the last 3 months (1 open-market buy, 0 sales)
- 🏛Institutions mixed (13F)
Horizon Bancorp, Inc. (HBNC) is a Financial Services company listed on NASDAQ. The stock is up 27% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 0 sales (SEC Form 4).
Horizon Bancorp, Inc. (HBNC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HBNC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.48 | $0.51 | +6.3% | $73M | -0.7% |
| Mar 13, 2026 | — | $0.53 | — | $101M | — |
| Oct 22, 2025 | $0.46 | $0.30 | -34.8% | $-204M | -379.0% |
| Jul 23, 2025 | $0.44 | $0.47 | +6.8% | $65M | -3.9% |
| Apr 23, 2025 | $0.40 | $0.54 | +35.0% | $68M | +5.5% |
| Mar 14, 2025 | — | $-0.25 | — | $63M | — |
| Oct 23, 2024 | $0.37 | $0.41 | +10.8% | $57M | -3.1% |
| Jul 24, 2024 | $0.31 | $0.32 | +3.2% | $55M | -0.9% |
| Apr 24, 2024 | $0.31 | $0.32 | +3.2% | $52M | -6.5% |
| Mar 15, 2024 | — | $-0.58 | — | $62M | — |
| Oct 25, 2023 | $0.36 | $0.37 | +2.8% | $53M | -4.8% |
| Jul 26, 2023 | $0.37 | $0.43 | +16.2% | $56M | -0.4% |
HBNC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 7, 2026 | Maass Brian Wdirector | Grant | 332 | $20.08 |
| Jul 7, 2026 | Samuels Michele Annettedirector | Grant | 332 | $20.08 |
| Jul 7, 2026 | Blackhurst Eric P.director | Grant | 322 | $20.08 |
| Jul 7, 2026 | Burnell Lawrence Edirector | Grant | 332 | — |
| Jul 7, 2026 | Reed Steven Williamdirector | Grant | 332 | — |
| Jul 7, 2026 | Ahern Kevindirector | Grant | 322 | — |
| May 27, 2026 | Stewart John Rofficer: EVP - Chief Financial Officer | Grant | 19,897 | — |
| May 27, 2026 | Stewart John Rofficer: EVP - Chief Financial Officer | Tax | 8,649 | $18.50 |
| Apr 29, 2026 | WALKER BRIAN Cdirector | Buy | 1,306 | $18.36 |
| Mar 24, 2026 | SECOR MARK Eofficer: Executive Vice President | Tax | 2,309 | $16.28 |
| Mar 24, 2026 | Prame Thomas Mofficer: Chief Executive Officer | Tax | 4,345 | $16.28 |
| Mar 24, 2026 | Etzler Todd A.officer: Executive Vice President & GC | Tax | 1,280 | $16.28 |
| Mar 24, 2026 | Kerber Lynnofficer: EVP & CCBO | Tax | 1,869 | $16.28 |
| Mar 24, 2026 | DeRuiter Kathie Aofficer: Executive Vice President | Tax | 1,711 | $16.28 |
| Mar 20, 2026 | Etzler Todd A.officer: Executive Vice President & GC | Grant | 3,020 | — |
Source: HBNC SEC Form 4 filings, latest Jul 7, 2026. For informational purposes only — not investment advice.
See the full HBNC insider & 13F page →Horizon Bancorp, Inc. company profile
Overview
Horizon Bancorp, Inc. (NASDAQ:HBNC) is a regional bank holding company founded in 1873 and headquartered in Michigan City, Indiana. The company operates through its primary subsidiary, Horizon Bank, which provides commercial and retail banking services across northern and central Indiana and southern and central Michigan through a network of 78 full-service offices. Having gone public in 2002, Horizon has evolved from a traditional community bank into a diversified regional financial institution focused on commercial lending, relationship banking, and strategic growth in its core Midwest markets.
Business
Horizon Bancorp operates in the regional banking industry, providing traditional banking services to businesses and consumers in its geographic footprint. The banking industry serves as a financial intermediary, accepting deposits from customers and lending those funds to borrowers while earning a spread between the interest paid on deposits and interest earned on loans. The company's core business segments include: 1. **Commercial Banking (60% of loan portfolio)**: This represents Horizon's primary focus, providing loans to businesses for operations, expansion, and real estate acquisition. The commercial portfolio consists of approximately 73% commercial real estate loans and 27% commercial and industrial (C&I) loans. Commercial real estate loans are secured by properties like office buildings, retail centers, and industrial facilities, while C&I loans fund working capital, equipment purchases, and business operations. 2. **Residential Mortgage Banking (17% of loan portfolio)**: The bank originates and holds residential mortgage loans for homebuyers and refinancing customers. Unlike many banks that sell mortgages to government-sponsored enterprises, Horizon typically retains these loans in its portfolio, earning long-term interest income. 3. **Consumer Banking (21% of loan portfolio)**: This segment includes personal loans, home equity lines of credit, and historically included indirect auto lending. The bank has been strategically reducing its indirect auto loan portfolio, which involves purchasing auto loans originated by car dealerships, in favor of higher-yielding direct consumer relationships. 4. **Equipment Finance Division**: Launched in 2024, this newer segment focuses on small-ticket and lower-middle market equipment leasing, providing financing for business equipment purchases with typically higher yields than traditional commercial loans. The bank also offers deposit products including checking accounts, savings accounts, and certificates of deposit, along with treasury management services for business customers. Additionally, Horizon provides trust and wealth management services, insurance products, and investment management services, though these represent smaller revenue streams compared to traditional banking operations.
Revenue model
Horizon Bancorp generates revenue primarily through **net interest income**, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowed funds. This traditional banking model depends on the bank's ability to attract low-cost deposits and deploy them into higher-yielding loans and securities. The bank's paying customers include commercial borrowers seeking business loans and real estate financing, residential mortgage borrowers, consumer loan customers, and depositors who provide the funding base. Commercial customers typically represent the most profitable segment due to higher loan yields and comprehensive banking relationships that include deposits, treasury management, and other fee-based services. **Revenue streams include**: - Interest income from commercial loans (the largest component) - Interest income from residential mortgages and consumer loans - Fee income from treasury management, trust services, and other banking services - Investment income from the securities portfolio **Factors that increase margins** include rising interest rates (which typically benefit banks with more variable-rate assets than liabilities), loan portfolio growth, shift toward higher-yielding commercial loans, and deposit cost discipline. The bank benefits from its focus on relationship banking, which helps maintain lower-cost core deposits compared to reliance on brokered or wholesale funding. **Factors that decrease margins** include falling interest rates, increased competition for deposits leading to higher deposit costs, credit losses requiring provisions, and regulatory compliance costs. The bank's margin is also sensitive to the shape of the yield curve, as a flattening or inverted curve can compress the spread between short-term funding costs and longer-term asset yields. Economic downturns can reduce loan demand and increase credit losses, while intense competition in the bank's markets can pressure both loan pricing and deposit costs.
Competitive moat
Horizon Bancorp operates in a moderately competitive regional banking environment with limited but meaningful competitive advantages. The company's **primary moat** stems from its established branch network and customer relationships in northern Indiana and southern Michigan markets, where it has operated for over 150 years. This local market presence creates switching costs for business customers who value relationship banking and prefer working with decision-makers who understand their local market dynamics. The bank's **relationship-based approach** provides some protection against purely price-based competition, as commercial customers often value comprehensive banking services, local expertise, and quick decision-making over marginally better rates from distant competitors. Approximately 50% of deposits are in relationship-based checking accounts, indicating customer stickiness beyond rate sensitivity. However, Horizon's moat is **relatively narrow** compared to larger regional banks or specialized financial institutions. The banking industry faces significant competitive pressures from multiple directions: larger national banks with greater resources and technology capabilities, credit unions with tax advantages, online banks offering higher deposit rates, and non-bank lenders providing alternative financing options. The commoditized nature of basic banking services limits pricing power, and regulatory capital requirements constrain growth relative to less-regulated competitors. **Potential disruption** comes from financial technology companies offering digital banking solutions, peer-to-peer lending platforms, and large technology companies entering financial services. The bank's traditional branch-based model faces ongoing pressure as customers increasingly prefer digital interactions, though this trend may be slower in Horizon's markets given the business-focused customer base that still values personal relationships. The company's competitive position is **adequate but not exceptional**, relying primarily on local market knowledge, established relationships, and service quality rather than unique products or significant cost advantages.
Risks & safety
**Overall Assessment**: Moderate margin of safety with adequate capitalization but some balance sheet management challenges. **Cash and Liquidity**: - Cash and short-term investments: $92.3 million (Q4 2024) - Strong liquid asset position relative to immediate obligations - Current ratio of 32.8x indicates substantial short-term liquidity **Debt and Solvency**: - Debt-to-equity ratio: 1.64x (industry-typical for banks) - Total assets: $7.8 billion with $7.0 billion in liabilities - Regulatory capital ratios remain solid per management commentary - No immediate solvency concerns given deposit-funded business model **Valuation Metrics**: - Price-to-book ratio: 0.92x (trading below book value) - Price-to-earnings ratio: 19.9x (based on 2024 full-year earnings) - Return on equity: 4.6% (2024), below historical norms - Net interest margin: 2.97% (Q4 2024), improving but still compressed **Other Considerations**: - Credit quality remains strong with nonperforming loans at 56 basis points - Allowance for credit losses at 1.07% of total loans appears adequate - Q4 2024 showed negative net income of $10.9 million, indicating earnings volatility - Asset quality concerns limited with substandard loans at 0.89% of portfolio
Recent development
Over the past few years, Horizon Bancorp has undergone significant strategic repositioning to improve profitability and focus on higher-yielding business lines. The most notable transformation has been the **shift away from lower-margin activities** toward core commercial banking relationships. **Key strategic moves include**: 1. **Portfolio Optimization**: The bank executed a major securities portfolio repositioning in 2024, selling approximately $325 million in lower-yielding securities to redeploy capital into higher-yielding commercial loans. This balance sheet restructuring was designed to improve net interest margins and overall profitability. 2. **Business Line Rationalization**: Horizon sold its mortgage warehouse division in January 2025 and has been systematically reducing its indirect auto loan portfolio by approximately $100 million annually. These moves eliminate lower-margin, capital-intensive businesses in favor of relationship-driven commercial lending. 3. **Equipment Finance Expansion**: The company launched a new equipment finance division in 2024, targeting $150-175 million in annual production. This initiative focuses on small-ticket and lower-middle market equipment leasing, offering higher yields than traditional commercial loans while leveraging the bank's credit expertise. 4. **Operational Efficiency**: Management has focused on expense control, targeting flat to low single-digit expense growth while investing in revenue-generating talent in treasury management and commercial lending. The bank closed seven offices and increased digital transaction adoption to 70% by 2022. 5. **Geographic Focus**: Rather than broad expansion, Horizon has concentrated on deepening relationships in its core Indiana and Michigan markets, with potential strategic acquisitions targeted in adjacent "infill" markets of Southwest Michigan, Eastern Michigan, and Southern Indiana. These strategic pivots reflect management's recognition that traditional community banking models require focus on higher-value relationships and specialized lending niches to maintain profitability in an increasingly competitive environment.
HBNC company profile · for informational purposes only — not investment advice.
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