Horizon Bancorp (HBNC) AI Stock Analysis

• Market Cap: $940.35M
• Dividend Yield: 3.49%
• Average Volume (3M): 273.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -78.64%
• EPS Growth: -913.67%
• Country: US
• Employees: 841
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 51,217,434
• 10 Day Avg. Volume: 350,124
• 30 Day Avg. Volume: 273,878
• 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: 1.21
• Enterprise Value/Revenue: 17.40
• Enterprise Value/Gross Profit: -13.63
• Enterprise Value/Ebitda: -4.72
• 1Y Price Target: $18.75
• Price Target Upside: 2.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.98
• Revenue Forecast (FY): $277.23M

• Rating: 58 Neutral
• Price Target: $18.00 ▼(-1.96% Downside)

Horizon Bancorp's overall stock score is primarily impacted by its weak financial performance, which is a significant concern. However, positive technical indicators and strong earnings call sentiment provide some optimism. The valuation remains a challenge due to recent losses, but strategic initiatives and corporate events suggest potential for future improvement.

Positive Factors

Net Interest Margin Expansion

Consistent expansion of net interest margin indicates effective interest rate management and enhances profitability, supporting long-term financial stability.

Strong Commercial Loan Growth

Robust growth in commercial loans reflects strong demand and effective lending practices, contributing to sustainable revenue streams and market position.

Improved Credit Quality

Maintaining high credit quality reduces risk of defaults, ensuring stable cash flows and protecting the bank's financial health over the long term.

Negative Factors

Declining Revenue and Profitability

Continued decline in revenue and profitability can hinder growth and investment capacity, posing a risk to long-term business viability.

Negative Cash Flow Trends

Negative cash flow trends suggest liquidity issues, limiting the company's ability to fund operations and invest in growth opportunities.

Nonperforming Assets Increase

An increase in nonperforming assets can strain resources and reduce profitability, impacting the bank's financial stability and growth prospects.

Horizon Bancorp Business Overview & Revenue Model

Company Description

Horizon Bancorp (HBNC) is a financial holding company based in Michigan that operates primarily through its wholly owned subsidiary, Horizon Bank. The company provides a range of banking and financial services to both individuals and businesses, including commercial and retail banking, mortgage lending, and investment management. Horizon Bancorp serves customers across several states, focusing on community banking and personalized service while maintaining a commitment to supporting local economies.

How the Company Makes Money

Horizon Bancorp generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include commercial loans, residential mortgages, consumer loans, and investment securities. Additionally, the bank earns non-interest income through fees for various services such as account maintenance, transaction fees, and wealth management services. Strategic partnerships with local businesses and investment firms can also enhance its earnings potential by expanding its customer base and offering bundled financial services.

Horizon Bancorp Financial Statement Overview

Summary

Horizon Bancorp faces significant financial challenges, with declining revenue and profitability, as well as negative cash flow trends. While the balance sheet shows some stability, the overall financial health is under pressure, requiring strategic interventions to improve performance.

Income Statement

Horizon Bancorp's income statement shows significant challenges, with a sharp decline in revenue and negative margins in the TTM period. The gross profit margin and net profit margin have turned negative, indicating substantial losses. Revenue growth has also been negative, reflecting a downturn in business performance.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which has improved in the TTM period. However, the return on equity is negative, highlighting profitability issues. The equity ratio remains stable, suggesting some balance sheet strength despite operational challenges.

Cash Flow

Cash flow analysis indicates negative free cash flow growth and negative operating cash flow in the TTM period. Although the free cash flow to net income ratio is positive, it is primarily due to negative net income, which is concerning. Overall, cash flow management appears strained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.53M	355.38M	319.32M	278.07M	246.57M	254.37M
Gross Profit	-83.61M	182.11M	180.30M	243.37M	230.35M	199.18M
EBITDA	-241.40M	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	6.71B	7.80B	7.94B	7.87B	7.41B	5.89B
Cash, Cash Equivalents and Short-Term Investments	983.95M	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	6.69B	5.19B
Stockholders Equity	660.77M	763.58M	718.81M	677.38M	723.21M	692.22M
Cash Flow
Free Cash Flow	-8.53M	1.28M	81.16M	87.95M	104.91M	72.90M
Operating Cash Flow	-2.71M	6.37M	88.94M	94.38M	106.35M	78.77M
Investing Cash Flow	1.30B	-52.78M	329.52M	-1.02B	-344.85M	-478.46M
Financing Cash Flow	-1.07B	-186.68M	-15.44M	455.55M	582.30M	550.48M

Horizon Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBNC, the sentiment is Positive. The current price of 18.36 is above the 20-day moving average (MA) of 17.24, above the 50-day MA of 16.39, and above the 200-day MA of 15.46, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 75.15 is Negative, neither overbought nor oversold. The STOCH value of 89.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HBNC.

Horizon Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMAL	82 Outperform	$973.83M	9.78	13.88%	1.72%	4.33%	-2.20%
CPF	80 Outperform	$874.85M	13.42	11.65%	3.34%	1.22%	15.97%
HFWA	79 Outperform	$859.45M	15.25	6.43%	3.79%	8.27%	54.96%
CFFN	76 Outperform	$935.87M	13.58	6.53%	4.78%	6.27%	79.25%
AMTB	73 Outperform	$840.99M	12.86	7.21%	1.77%	15.37%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HBNC	58 Neutral	$940.35M	-4.67	-26.60%	3.49%	-78.64%	-913.67%

Horizon Bancorp Corporate Events

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.

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.

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.

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.