Horizon Bancorp (HBNC) AI Stock Analysis

• Market Cap: $837.71M
• Dividend Yield: 3.91%
• Average Volume (3M): 378.43K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.14
• Revenue Growth: 7.86%
• EPS Growth: 170.93%
• Country: US
• Employees: 841
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.47
• Shares Outstanding: 51,235,943
• 10 Day Avg. Volume: 713,454
• 30 Day Avg. Volume: 378,428
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 11.50
• Enterprise Value/Ebitda: 28.78
• 1Y Price Target: $18.67
• Price Target Upside: 14.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $17.50 ▲(7.03% Upside)

Horizon Bancorp's strong financial performance and positive earnings call are the most significant factors driving the score. The stock's valuation is reasonable, and technical indicators suggest a stable outlook. Corporate events support the positive sentiment but are already accounted for in the earnings analysis.

Horizon Bancorp Business Overview & Revenue Model

Company Description

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides a range of commercial and retail banking services. The company offers various deposits. It also provides commercial, residential real estate, mortgage warehouse, and consumer loans. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; and sells various insurance products. It operates through a network of 78 full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.

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 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. The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio and strong cash flow management, although improvements in return on equity could enhance shareholder value.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	371.86M	355.38M	319.32M	278.07M	246.57M	254.37M
Gross Profit	144.76M	182.11M	180.30M	241.56M	228.26M	199.18M
EBITDA	57.82M	39.65M	50.97M	118.68M	116.32M	90.70M
Net Income	51.88M	35.43M	27.98M	93.41M	87.09M	68.50M
Balance Sheet
Total Assets	7.65B	7.80B	7.94B	7.87B	7.36B	5.89B
Cash, Cash Equivalents and Short-Term Investments	333.72M	527.84M	1.08B	1.12B	1.76B	1.39B
Total Debt	1.09B	1.35B	1.04B	1.01B	828.27M	590.15M
Total Liabilities	6.86B	7.04B	7.22B	7.20B	6.63B	5.19B
Stockholders Equity	790.85M	763.58M	718.81M	677.38M	723.21M	692.22M
Cash Flow
Free Cash Flow	-5.06M	1.28M	81.16M	87.95M	103.91M	72.90M
Operating Cash Flow	-851.00K	6.37M	88.94M	94.38M	105.35M	78.77M
Investing Cash Flow	343.56M	-52.78M	329.52M	-1.02B	-344.85M	-478.46M
Financing Cash Flow	-319.15M	-186.68M	-15.44M	455.55M	582.30M	550.48M

Horizon Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.35
• 50DMA: Positive
• 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 Positive. The current price of 16.35 is above the 20-day moving average (MA) of 15.64, above the 50-day MA of 15.57, and above the 200-day MA of 15.68, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 68.24 is Neutral, 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
GSBC	81 Outperform	$715.95M	10.65	11.48%	2.56%	4.55%	16.84%
HTB	76 Outperform	$715.96M	12.08	10.60%	0.87%	2.03%	4.81%
CCBG	73 Outperform	$740.52M	12.48	11.69%	2.17%	9.68%	13.46%
HBNC	73 Outperform	$837.71M	13.31	6.84%	3.91%	7.86%	170.93%
IBCP	72 Outperform	$686.31M	10.65	14.39%	3.12%	3.17%	-1.53%
Sector *	68 Neutral	$17.69B	11.82	10.30%	3.73%	9.66%	0.42%
EGBN	55 Neutral	$587.94M	―	-2.63%	3.41%	-2.45%	15.35%

Horizon Bancorp Corporate Events

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.

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.

Horizon Bancorp Reports Strong Q2 2025 Financial Results

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.

Horizon Bancorp Declares Dividend of $0.16 Per Share

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.