Horizon Bancorp (in) Stock Earnings Reports

Horizon reported a strong start to 2026 with durable, peer-leading operating metrics. Q1 highlights included a net interest margin of 4.29%, annualized return on average assets above 1.60% and return on average tangible common equity above 19%. Common equity Tier 1 capital improved by 40 basis points to 10.82% and total risk-based capital rose to 14.77%. Deposits grew by about $147 million in the quarter (11% annualized), including $61 million of noninterest-bearing deposits. Loans held for investment ended at $4.87 billion with $34 million of commercial loan growth; management intentionally restrained lower-yielding residential refinance originations. Credit metrics remained sound: nonperforming loans about 0.76% of loans and net charge-offs low (5 bps annualized). Fee income showed solid year-over-year growth (excluding a $7 million warehouse gain), expenses were in line with guidance ($40.7 million for the quarter) and full-year expense guidance remains mid-$160 million. Management reiterated 2026 guidance: mid-single-digit period-end loan and deposit growth, FTE NIM 4.25%–4.35%, low-teens growth in non-FTE net interest income, mid-$40 million fee income, and an effective tax rate of 18%–20%. Capital generation is strong, giving the company optionality for buybacks, M&A or reinvestment, though management remains disciplined. Near-term considerations: elevated earning cash balances modestly reduced NIM (~4 bps drag) and Q2 will see a modest increase in the quarterly expense run rate due to merit increases and marketing spend. Overall outlook unchanged and management expects continued organic growth and strong shareholder returns.