Horizon Bancorp (HBNC) AI Stock Analysis

• Market Cap: $643.82M
• Dividend Yield: 4.38%
• Average Volume (3M): 136.17K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.16
• Revenue Growth: 9.55%
• EPS Growth: 90.70%
• Country: US
• Employees: 841
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 44,097,290
• 10 Day Avg. Volume: 153,333
• 30 Day Avg. Volume: 136,169
• PEG Ratio: 1.23
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.85
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 7.63
• 1Y Price Target: $17.00
• Price Target Upside: 16.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $16.00 ▲(9.59%Upside)

Horizon Bancorp's overall score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. While technical indicators suggest potential weakness, the company's strategic achievements and stable dividend yield support a moderately positive outlook.

Horizon Bancorp Business Overview & Revenue Model

Company Description

Horizon 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 Money

Horizon 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 Financial Statement Overview

Summary

Horizon Bancorp shows solid financial performance with strong gross profit margins and a robust balance sheet characterized by zero debt. Despite these strengths, revenue and free cash flow have declined, which could impact future profitability. The company's focus on cash management and low leverage provides a stable financial foundation.

Income Statement

Horizon Bancorp shows a mixed performance with a strong gross profit margin of 118.15% for TTM, indicating efficient cost management. However, the net profit margin is modest at 14.19%, with revenue growth declining by 22.56% compared to the previous year. EBIT and EBITDA margins are 21.47% and 22.52% respectively, reflecting moderate operational efficiency.

Balance Sheet

The balance sheet is robust with no total debt reported in the TTM period, significantly improving from the previous year's debt levels. The debt-to-equity ratio is 0, highlighting low financial leverage. Return on Equity (ROE) is a moderate 4.64%, with an equity ratio of 10.50%, indicating a stable capital structure but with room for improvement in return generation.

Cash Flow

Free Cash Flow shows a decline in growth rate by 36.51%, while the operating cash flow to net income ratio stands at 1.55, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.45, suggesting efficient cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
187.50M	319.32M	284.05M	252.31M	219.93M
	Gross Profit
182.11M	180.30M	241.56M	228.26M	219.93M
	EBIT
56.41M	66.91M	142.10M	102.45M	105.75M
	EBITDA
39.65M	50.97M	118.68M	116.32M	90.70M
	Net Income Common Stockholders
35.43M	27.98M	93.41M	87.09M	68.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
325.98M	526.51M	1.12B	1.76B	1.39B
	Total Assets
7.80B	7.94B	7.87B	7.36B	5.89B
	Total Debt
1.26B	899.82M	1.26B	771.82M	590.15M
	Net Debt
1.14B	371.10M	1.13B	173.53M	331.48M
	Total Liabilities
7.04B	7.22B	7.20B	6.63B	5.19B
	Stockholders Equity
763.58M	718.81M	677.38M	723.21M	692.22M
Cash Flow		Free Cash Flow
1.28M	81.16M	87.95M	103.91M	72.90M
	Operating Cash Flow
6.37M	88.94M	94.38M	105.35M	78.77M
	Investing Cash Flow
-52.78M	329.52M	-1.02B	-363.08M	-492.32M
	Financing Cash Flow
-190.82M	-15.44M	455.55M	582.30M	564.44M

Horizon Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 14.6 is below the 20-day moving average (MA) of 15.02, below the 50-day MA of 14.61, and below the 200-day MA of 15.69, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 59.16 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
CCBG	77 Outperform	$626.77M	10.92	11.83%	2.61%	8.13%	11.18%
HTB	74 Outperform	$619.99M	11.21	9.96%	1.36%	5.23%	-7.72%
IBCP	71 Outperform	$633.44M	9.73	15.04%	3.40%	5.59%	7.03%
HBNC	70 Outperform	$643.82M	14.18	6.06%	4.38%	9.55%	90.70%
GSBC	69 Neutral	$637.85M	9.94	11.13%	2.88%	7.98%	10.16%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
EGBN	55 Neutral	$533.73M	―	-3.60%	3.76%	1.68%	-159.14%

Horizon Bancorp Corporate Events

Horizon Bancorp Reports Strong Q1 2025 Financial Results

Horizon Bancorp, Inc. reported its financial results for the first quarter of 2025, highlighting a net income of $23.9 million, a significant improvement from a net loss in the previous quarter. The company achieved a sixth consecutive quarter of net interest margin expansion, strong loan growth, and maintained stable core deposits. The sale of its mortgage warehouse business contributed a pre-tax gain of $7.0 million, and the company reduced expenses by $5.6 million, reflecting a more efficient expense base.

Horizon Bancorp Updates Equity Incentive Plan Criteria

On April 15, 2025, Horizon Bancorp‘s Compensation Committee approved amendments to the award agreements under its 2021 Omnibus Equity Incentive Plan. These changes include new performance-based and time-based vesting criteria for restricted stock grants. The amendments impact grants made after April 15, 2025, and certain executive officer grants from March 18, 2025. The performance-based vesting now spans a three-year period with goals tied to Core Return on Average Assets and Total Shareholder Return, each weighted equally. Time-based vesting shares will now vest equally over three years. These changes aim to align executive incentives with company performance and market benchmarks, potentially affecting shareholder value and executive retention.