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Horizon Bancorp [In] (HBNC)
NASDAQ:HBNC
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Horizon Bancorp (HBNC) AI Stock Analysis

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HBNC

Horizon Bancorp

(NASDAQ:HBNC)

Rating:70Outperform
Price Target:
$17.00
▲(8.83%Upside)
Horizon Bancorp exhibits solid financial performance and robust earnings call results, contributing significantly to the overall score. The technical analysis shows neutral momentum, and the fair valuation supports the investment case. Positive corporate events further enhance the company's outlook, despite the need for improved return on equity and profit efficiency.

Horizon Bancorp (HBNC) vs. SPDR S&P 500 ETF (SPY)

Horizon Bancorp Business Overview & Revenue Model

Company DescriptionHorizon Bancorp (HBNC) is a diversified financial services company headquartered in Michigan City, Indiana. It operates as the holding company for Horizon Bank, which provides a broad range of banking services to both individual and business clients. The company is primarily involved in offering commercial and retail banking services, which include various deposit products, loans, and credit services. Additionally, Horizon Bancorp provides wealth management, investment advisory, and insurance services, catering to the financial needs of its diverse customer base across multiple states in the Midwest region.
How the Company Makes MoneyHorizon Bancorp generates revenue primarily through the interest income earned from its lending activities, which include commercial loans, residential mortgage loans, and consumer loans. The company also earns money from service charges and fees associated with its deposit accounts and other banking services. Non-interest income, such as income from wealth management and investment advisory services, insurance product commissions, and interchange fees from card services, further contributes to its revenue streams. Horizon Bancorp maintains strategic partnerships with financial institutions and service providers to enhance its product offerings and service delivery, thereby supporting its earnings growth.

Horizon Bancorp Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -1.95%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong loan growth, net interest margin expansion, and improved earnings per share, indicating a positive financial performance. However, there was a decrease in consumer loan balances and an increase in provision expense. Overall, the positive aspects significantly outweigh the lowlights, suggesting that the company is on a strong financial footing heading into the second half of the year.
Q2-2025 Updates
Positive Updates
Strong Loan Growth
Net loans held for investment grew $75.5 million, representing 1.5% growth in the quarter and 6.2% on an annualized basis, driven by commercial loan growth of $117 million, a 14.8% increase.
Net Interest Margin Expansion
The Q2 net interest margin increased by 19 basis points to 3.23%, exceeding expectations and driven by improved asset and liability mix.
Earnings Per Share Growth
Reported earnings per share grew by 58% compared to the same period a year ago.
Excellent Credit Quality
Low net charge-offs of 2 basis points annualized, with substandard loans and nonperforming loans reduced slightly this quarter.
Negative Updates
Decreased Consumer Loan Balances
Consumer loan balances decreased by $41 million due to the strategic run-down of the indirect auto portfolio.
Increased Provision Expense
Provision expense rose to $2.4 million, driven by loan growth and economic forecast changes.
Company Guidance
During the second quarter call, Horizon Bancorp Inc. provided a robust financial overview, highlighting numerous key metrics that underscore their strong performance and strategic positioning. The quarter saw a 58% year-over-year increase in earnings per share, driven by a seventh consecutive quarter of net interest margin expansion, which increased by 19 basis points to 3.23%. Loan growth was significant, with net loans held for investment rising by $75.5 million, or 6.2% on an annualized basis, primarily fueled by a $117 million increase in commercial loans. Asset quality remained strong, with net charge-offs at 2 basis points and substandard loans at 1.29%. The allowance for credit losses increased to $54 million, representing 1.09% of loans held for investment. Horizon maintained a disciplined approach to deposit pricing, keeping funding costs relatively stable, and expects further margin expansion in the latter half of 2025. The company also reduced their full-year expense outlook, expecting it to remain flat compared to 2024, while forecasting mid-teens net interest income growth for the year.

Horizon Bancorp Financial Statement Overview

Summary
Horizon Bancorp shows healthy financial performance with consistent revenue growth and effective cost management. Despite strong cash flow generation, the balance sheet reflects a manageable but notable reliance on debt, and the return on equity is relatively low, indicating room for improvement in profit efficiency.
Income Statement
72
Positive
Horizon Bancorp shows healthy financial performance with consistent revenue growth, evidenced by a 3.15% increase in TTM revenue compared to the previous year. The gross profit margin stands at 53.8% while the net profit margin is 12.4%, indicating efficient cost management. Despite a slight decline in EBIT and EBITDA margins from the previous year, the company maintains robust profitability.
Balance Sheet
68
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.31, which is manageable for a regional bank. The equity ratio is 10.2%, illustrating a modest reliance on equity financing. However, the return on equity is relatively low at 5.8%, indicating potential inefficiencies in generating profits from shareholder investments.
Cash Flow
75
Positive
Horizon Bancorp demonstrates strong cash flow management, with a free cash flow growth rate of 681.6% year-over-year. The operating cash flow to net income ratio of 0.33 suggests that the company effectively converts a portion of its net income to cash, although there is room for improvement. The free cash flow to net income ratio of 0.22 highlights consistent cash generation capabilities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue355.38M319.32M278.07M246.57M254.37M
Gross Profit182.11M180.30M241.56M228.26M199.18M
EBITDA39.65M50.97M118.68M116.32M90.70M
Net Income35.43M27.98M93.41M87.09M68.50M
Balance Sheet
Total Assets7.80B7.94B7.87B7.36B5.89B
Cash, Cash Equivalents and Short-Term Investments527.84M1.08B1.12B1.76B1.39B
Total Debt1.35B1.04B1.01B828.27M590.15M
Total Liabilities7.04B7.22B7.20B6.63B5.19B
Stockholders Equity763.58M718.81M677.38M723.21M692.22M
Cash Flow
Free Cash Flow1.28M81.16M87.95M103.91M72.90M
Operating Cash Flow6.37M88.94M94.38M105.35M78.77M
Investing Cash Flow-52.78M329.52M-1.02B-344.85M-478.46M
Financing Cash Flow-186.68M-15.44M455.55M582.30M550.48M

Horizon Bancorp Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.62
Price Trends
50DMA
15.25
Positive
100DMA
14.92
Positive
200DMA
15.61
Positive
Market Momentum
MACD
0.15
Positive
RSI
51.13
Neutral
STOCH
46.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBNC, the sentiment is Neutral. The current price of 15.62 is below the 20-day moving average (MA) of 15.80, above the 50-day MA of 15.25, and above the 200-day MA of 15.61, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HBNC.

Horizon Bancorp Risk Analysis

Horizon Bancorp disclosed 41 risk factors in its most recent earnings report. Horizon Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Horizon Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$682.57M10.3411.48%2.69%4.50%16.92%
76
Outperform
$723.70M11.9410.63%0.59%2.03%5.15%
71
Outperform
$698.23M12.2111.69%2.33%9.58%13.46%
71
Outperform
$680.48M11.1214.39%3.05%3.13%-1.53%
70
Outperform
$681.30M13.526.84%4.10%7.82%170.93%
68
Neutral
¥760.77B11.017.55%3.20%7.82%14.69%
51
Neutral
$514.29M-2.63%5.82%-2.37%15.33%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HBNC
Horizon Bancorp
15.62
0.39
2.56%
CCBG
Capital City Bank
40.42
6.12
17.84%
EGBN
Eagle Bancorp
16.25
-4.73
-22.55%
GSBC
Great Southern Bancorp
59.34
-2.04
-3.32%
HTB
Hometrust Bancshares
40.70
6.97
20.66%
IBCP
Independent Bank
32.46
-0.79
-2.38%

Horizon Bancorp Corporate Events

Financial Disclosures
Horizon Bancorp Reports Strong Q2 2025 Financial Results
Positive
Jul 23, 2025

Horizon Bancorp, Inc. reported strong financial results for the second quarter of 2025, driven by continued net interest margin expansion and robust loan growth. The company achieved a 58% increase in earnings per share compared to the same period last year, reflecting effective capital deployment and expense management. Key performance metrics such as ROAA and ROATCE showed enhanced momentum, while credit quality remained strong with low net charge-offs. The strategic runoff of lower-yielding loans and disciplined balance sheet management contributed to the positive outcomes, positioning the company for continued shareholder value creation.

The most recent analyst rating on (HBNC) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Dividends
Horizon Bancorp Declares Dividend of $0.16 Per Share
Positive
Jun 18, 2025

On June 17, 2025, Horizon Bancorp, Inc.’s Board of Directors declared a dividend of $0.16 per share, which will be distributed to shareholders on July 18, 2025, with a record date of July 3, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (HBNC) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025