Horizon Bancorp (HBNC) AI Stock Analysis

• Market Cap: $812.09M
• Dividend Yield: 4.04%
• Average Volume (3M): 415.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -78.71%
• EPS Growth: -913.67%
• Country: US
• Employees: 841
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -4.69
• Shares Outstanding: 51,235,943
• 10 Day Avg. Volume: 528,730
• 30 Day Avg. Volume: 415,157
• PEG Ratio: 0.75
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 548.32
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 15.55
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: -4.62
• 1Y Price Target: $19.83
• Price Target Upside: 26.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: $16.50 ▲(5.10% Upside)

Horizon Bancorp's overall stock score reflects a strong performance in strategic initiatives and earnings call highlights, which are offset by valuation concerns due to a negative P/E ratio. Financial performance is stable but shows potential leverage risks. Technical indicators suggest a neutral outlook, with no strong momentum in either direction.

Horizon Bancorp Business Overview & Revenue Model

Company Description

Horizon Bancorp (HBNC) is a regional bank holding company headquartered in Michigan, primarily engaged in providing a wide range of banking and financial services. It operates through its wholly-owned subsidiary, Horizon Bank, which serves individual and commercial clients by offering services such as personal and business banking, loans, mortgages, investment services, and wealth management. The bank is focused on enhancing customer relationships and delivering tailored financial solutions across its operating regions.

How the Company Makes Money

Horizon Bancorp generates revenue primarily through interest income from loans and investment securities. The key revenue streams include net interest income, which is the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. Additionally, the bank earns non-interest income from fees associated with banking services, such as account maintenance fees, transaction fees, and income from wealth management services. Significant partnerships with local businesses and real estate developers also contribute to its lending portfolio, enhancing its earnings potential. The bank's focus on growing its retail and commercial banking segments, along with its strategic acquisitions, further bolsters its revenue generation capabilities.

Horizon Bancorp Financial Statement Overview

Summary

Horizon Bancorp demonstrates solid revenue growth and operational efficiency, with strong gross profit margins. However, the high debt-to-equity ratio and moderate return on equity indicate potential leverage risks. Cash flow generation is improving, but the conversion of income to cash remains a concern. Overall, the company is on a stable financial footing with areas for improvement in leverage and cash flow conversion.

Income Statement

Horizon Bancorp shows a consistent revenue growth trajectory with a TTM revenue growth rate of 1.3%. The gross profit margin is healthy at 55.9%, indicating efficient cost management. However, the net profit margin has decreased from previous years, currently at 14.0%, suggesting increased expenses or reduced pricing power. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved to 1.38 from previous higher levels, indicating better leverage management. However, it remains relatively high, which could pose risks if interest rates rise. Return on equity is modest at 6.7%, showing moderate profitability. The equity ratio of 10.3% suggests a stable capital structure but leaves room for improvement.

Cash Flow

Free cash flow has shown significant growth, with a TTM growth rate of 30.3%, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 1.9%, suggesting potential issues in converting income to cash. The free cash flow to net income ratio is strong at 70.1%, reflecting good cash flow management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.32M	355.38M	319.32M	278.07M	246.57M	254.37M
Gross Profit	151.00M	182.11M	180.30M	241.56M	228.26M	199.18M
EBITDA	-246.68M	39.65M	50.97M	118.68M	116.32M	90.70M
Net Income	-188.29M	35.43M	27.98M	93.41M	87.09M	68.50M
Balance Sheet
Total Assets	6.77B	7.80B	7.94B	7.87B	7.36B	5.89B
Cash, Cash Equivalents and Short-Term Investments	876.45M	527.84M	1.08B	1.12B	1.76B	1.39B
Total Debt	458.82M	1.35B	1.04B	1.01B	828.27M	590.15M
Total Liabilities	6.05B	7.04B	7.22B	7.20B	6.63B	5.19B
Stockholders Equity	660.77M	763.58M	718.81M	677.38M	723.21M	692.22M
Cash Flow
Free Cash Flow	-17.93M	1.28M	81.16M	87.95M	103.91M	72.90M
Operating Cash Flow	-13.63M	6.37M	88.94M	94.38M	105.35M	78.77M
Investing Cash Flow	1.14B	-52.78M	329.52M	-1.02B	-344.85M	-478.46M
Financing Cash Flow	-338.47M	-186.68M	-15.44M	455.55M	582.30M	550.48M

Horizon Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBNC, the sentiment is Negative. The current price of 15.7 is below the 20-day moving average (MA) of 15.79, below the 50-day MA of 16.00, and above the 200-day MA of 15.39, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 49.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HBNC.

Horizon Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMAL	―	$832.52M	8.20	13.88%	2.02%	4.33%	-2.20%
HFWA	―	$762.33M	13.65	6.43%	4.11%	8.27%	54.96%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CPF	―	$780.14M	11.66	11.65%	3.78%	1.23%	15.97%
HBNC	―	$812.09M	―	-26.60%	4.04%	-78.71%	-913.67%
CFFN	―	$799.46M	11.58	6.54%	5.33%	6.27%	79.32%
AMTB	―	$709.32M	10.57	7.67%	2.03%	15.37%	―

Horizon Bancorp Corporate Events

Horizon Bancorp’s Earnings Call Highlights Strong Q3 Performance

Horizon Bancorp’s recent earnings call conveyed a positive sentiment, highlighting a robust third quarter performance. The company successfully executed strategic initiatives that led to significant margin expansion, improved credit quality, and strong commercial loan growth. Despite facing some nonrecurring expenses and a runoff in the indirect auto loan portfolio, Horizon Bancorp is well-positioned for future growth and capital generation. The balance sheet restructuring has laid a strong foundation for 2026, with potential for strategic mergers and acquisitions.

Horizon Bancorp Reports Q3 2025 Financial Results

Horizon Bancorp, Inc., a commercial bank holding company headquartered in Michigan City, Indiana, operates in the financial sector providing a range of banking services across the Midwest through its subsidiary, Horizon Bank. The company is known for its focus on community banking and comprehensive business banking services.

Horizon Bancorp Reports Strong Q3 2025 Results

Horizon Bancorp, Inc. reported its third quarter 2025 results, highlighting a strategic balance sheet repositioning that exceeded expectations, positioning the company for top-tier financial performance. Despite a net loss of $222 million due to balance sheet activities, the company saw a 5.5% increase in net interest income and maintained strong credit quality, with plans to focus on profitable growth and shareholder value.

The most recent analyst rating on (HBNC) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Horizon Bancorp Appoints Larry Magnesen to Board

On October 14, 2025, Horizon Bancorp announced the appointment of Larry S. Magnesen as an independent director on its Board of Directors, effective October 10, 2025. Magnesen, with over forty years of experience in the banking industry, is expected to bring valuable insights to Horizon’s Board at a crucial time in the company’s growth. His extensive knowledge of the banking sector and understanding of Horizon’s core markets are anticipated to enhance the company’s operations and support its continued expansion in the Midwest.

The most recent analyst rating on (HBNC) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Horizon Bancorp Announces Dividend Approval

On September 16, 2025, Horizon Bancorp, Inc. announced that its Board of Directors approved a dividend of $0.16 per share. This dividend will be payable on October 17, 2025, to stockholders who are recorded as of October 3, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HBNC) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Horizon Bancorp Announces Balance Sheet Repositioning Success

On September 15, 2025, Horizon Bancorp, Inc. announced the successful execution of its balance sheet repositioning strategy, which included a public offering of common stock and issuance of subordinated notes. These actions, along with the sale of securities and prepayment of advances, aim to enhance shareholder value and align the company’s financial performance with its restructuring plan, positioning Horizon as a top performer among its peers.

The most recent analyst rating on (HBNC) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Horizon Bancorp Completes $100M Subordinated Notes Placement

On August 29, 2025, Horizon Bancorp, Inc. announced the completion of a $100 million private placement of 7.00% Fixed-to-Floating Rate Subordinated Notes due 2035. The proceeds are intended for general corporate purposes, including balance sheet repositioning and redeeming $56.5 million of existing notes. This move is expected to enhance Horizon’s financial flexibility and regulatory capital structure, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HBNC) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Horizon Bancorp Announces Public Offering of Shares

On August 21, 2025, Horizon Bancorp, Inc. announced the pricing of its public offering of 6,207,000 shares of common stock at $14.50 per share, aiming to raise approximately $90 million before expenses. The company plans to use the proceeds for general corporate purposes, including potential balance sheet repositioning. This strategic move is expected to strengthen Horizon’s financial position and support its growth initiatives, potentially impacting its market presence and stakeholder interests.

The most recent analyst rating on (HBNC) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.

Horizon Bancorp Announces Public Stock Offering

On August 20, 2025, Horizon Bancorp, Inc. announced the launch of an underwritten public offering of its common stock, with the option for underwriters to purchase an additional 15% of the shares. The proceeds from this offering are intended for general corporate purposes, including potential balance sheet repositioning, which could impact the company’s financial strategy and market positioning.

The most recent analyst rating on (HBNC) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on Horizon Bancorp stock, see the HBNC Stock Forecast page.