HORIZON BANCORP INC /IN/
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
HBNC$20.81-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0000706129-26-000063
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0000706129-26-000087
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 103 current paragraphs.
60 unchanged; 36 reworded; 7 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Net Income increased $250.7 million, to $28.7 million, or $0.56 per diluted share, for the three months ended September 30, 2026 compared to a net loss of $222.0 million, or $(4.69) per diluted share, for the same period in 2025. The increase is primarily driven bya $307.3 million increase in non-interest income due to the loss on the sale of securities associated with the balance sheet repositioning executed during the third quarter of 2025, which did not recur in the current period. Additionally, non-interest expense decreased by $11.4 million and net interest income increased$6.8 million, which were partially offset by a $69.9 million increase in income tax expense and a $4.9 million increase in provision for credit losses.
Current report
Net income increased $257.1 million to $79.7 million, or $1.55 per diluted share, during the nine months ended September 30, 2026 when compared to a loss of $177.4 million, or $(3.94) per share, for the same period in 2025. The increase was primarily a result of a $303.1 million increase in non-interest income, due to the loss on the sale of securities associated with the balance sheet repositioning executed during the third quarter of 2025, which did not recur in the current period. Additionally, net interest income increased by $24.9 million and non-interest expense decreased by $5.6 million. The increase was partially offset by a $74.1 million increase in income tax expense and a $2.3 million increase in provision for credit losses.
Current report
Loss on sale of investment securities decreased by $299.1 million for the three months ended September 30, 2026 compared to the same period in 2025, and decreased by $299.5 million for the nine months ended September 30, 2026 compared to the same period in 2025. The decrease was primarily due to the sale of investment securities during the third quarter of 2025 related to the Company's balance sheet repositioning efforts, which did not recur in the current period.
Current report
FDIC Insurance expense decreased by $0.7 millionfor thethree months ended September 30, 2026 compared to the same period in 2025, and decreased by $1.1 million for the nine months ended September 30, 2026 compared to the same period in 2025. The decrease is related to a reduction in FDIC assessments in the current year related to improved profitability and higher capital levels.
Current report
Prepayment penalties decreased $12.7 million for the three and nine months ended September 30, 2026 when compared to the same period in 2025. The decrease was driven by a $12.7 million prepayment penalty related to the payoff of $700 million in FHLB advances during the third quarter of 2025 related to the Company's balance sheet repositioning efforts, which did not recur in the current period.
Current report
For the nine months ended September 30, 2026 and 2025
Current report
For the nine months ended September 30, 2026 and 2025
Removed paragraphs (4)
Previous report
Net Income increased $4.3 million, to $24.9 million, or $0.49 per diluted share, during the three months ended June 30, 2026 when compared to net income of $20.6 million, or $0.47 per diluted share, for the same period in 2025. The increase in net income when compared with the prior year period is the primary driven by an increase in net interest income of$8.1 million, a decrease in provision expense of $1.5 million and an increase in non-interest income of $1.1 million. The increase was partially offset by an increase in non-interest expense of $4.4 million, driven primarily by the $3.1 million legal charge in the current period, and an increase in tax expense of $2.1 million.
Previous report
Net income increased $6.5 million to $51.1 million, or $1.00 per diluted share, during the six months ended June 30, 2026 when compared to $44.6 million, or $1.01 per share, for the same period in 2025. The increase from the year ago period was primarily a result of an increase in net interest income of $18.1 million and a decrease in provision expense of $2.5 million. The increase was partially offset by an increase in non-interest expense of $5.9 million, a decrease in non-interest income of $4.2 million and an increase in tax expense of $4.1 million.
Previous report
For the six months ended June 30, 2026 and 2025
Previous report
For the six months ended June 30, 2026 and 2025
Reworded paragraphs (36)
Previous wording
Net interest income increased $8.1 million, or 14.7% during thethree months ended June 30, 2026, to $63.5 million, when compared to the same period in 2025. While average earning assets decreased, owed to the balance sheet repositioning and deleveraging efforts in the third quarter of 2025, the reported net FTE interest margin 1 increased by 114 basis points, to 4.37% for the three months ended June 30, 2026 compared to the prior year period, driven by the favorable mix shift toward higher-yielding average interest earning assets, and the funding mix toward lower cost deposit liabilities. Additionally, securities yields have expanded while deposit costs have declined when compared with the comparable year ago period.
Current wording
Net interest income increased $6.8 million, or 11.6% during thethree months ended September 30, 2026, to $65.2 million, when compared to the same period in 2025. While average earning assets decreased, owed to the balance sheet repositioning and deleveraging efforts in the third quarter of 2025, the reported net FTE interest margin 1 increased by 85 basis points, to 4.37% for the three months ended September 30, 2026 compared to the prior year period, driven by the favorable mix shift toward higher-yielding average interest earning assets, and the funding mix toward lower cost deposit liabilities. Additionally, securities yields have expanded while deposit costs have declined when compared with the comparable year ago period.
Previous wording
Net interest income increased $18.1 million during the six months ended June 30, 2026, to $125.7 million when compared to the same period in 2025. While average earning asset balances decreased, owed to the balance sheet repositioning and deleveraging efforts in the third quarter of 2025, the reported net FTE interest margin 1 increased by 119 basis points, to 4.33% for the six months ended June 30, 2026 when compared to the prior year period. The primary driver of the increase in net interest income compared with the prior year period is attributable to the favorable mix shift in both higher-yielding average interest earning assets, and the funding mix toward lower cost deposit liabilities. Additionally, loan and security yields have expanded while deposit costs have declined when compared with the comparable year ago period.
Current wording
Net interest income increased $24.9 million during the nine months ended September 30, 2026, to $190.9 million when compared to the same period in 2025. While average earning asset balances decreased, owed to the balance sheet repositioning and deleveraging efforts in the third quarter of 2025, the reported net FTE interest margin 1 increased by 108 basis points, to 4.34% for the nine months ended September 30, 2026 when compared to the prior year period. The primary driver of the increase in net interest income compared with the prior year period is attributable to the favorable mix shift in both higher-yielding average interest earning assets, and the funding mix toward lower cost deposit liabilities. Additionally, loan and security yields have expanded while deposit costs have declined when compared with the comparable year ago period.
Previous wording
Following are the average balance sheets for the six months ended (dollars in thousands):
Current wording
Following are the average balance sheets for the nine months ended (dollars in thousands):
Previous wording
Total non-interest income increased $1.1 million, to net income of $12.0 million for the three months ended June 30, 2026 compared to the same period in 2025, and decreased $4.2 million for the six months ended June 30, 2026 compared to the same period in 2025. The primary components of the change were as follows:
Current wording
Total non-interest income increased $307.3 million, to non-interest income of $11.9 million for the three months ended September 30, 2026 compared to the same period in 2025, and increased $303.1 million for the nine months ended September 30, 2026 compared to the same period in 2025. The primary components of the change were as follows:
Previous wording
Other income, which includes various miscellaneous income items as well as fair market value adjustments to certain other assets, increased by $0.2 million for the three months ended June 30, 2026 compared to the same period in 2025 and decreased by $6.1 million for the six months ended June 30, 2026. The decrease was primarily related to the pre-tax gain of $7.0 million on the sale of the Company's mortgage warehouse business in the first quarter of 2025, which did not recur.
Current wording
Other income, which includes various miscellaneous income items as well as fair market value adjustments to certain other assets, increased by $7.2 million for the three months ended September 30, 2026 compared to the same period in 2025 and increased by $1.0 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase was primarily related to the pre-tax loss of $7.7 million on the sale of the Company's Indirect Auto portfolio related to the balance sheet repositioning efforts during the third quarter of 2025, which did not recur in the current period.
Previous wording
Gain on sale of mortgage loans increased $0.4 million for the three months ended June 30, 2026 compared to the same period in 2025, and increased $0.4 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase is primarily driven by the increased volume of sold loans.
Current wording
Gain on sale of mortgage loans increased $0.9 million for the three months ended September 30, 2026 compared to the same period in 2025, and increased $1.3 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase is primarily driven by the increased volume of sold loans, and by wider realized gain-on-sale margins in the current quarter when compared with the same year ago period.
Previous wording
Fiduciary activities increased $0.2 million for the three months ended June 30, 2026 compared to the same period in 2025, and increased $0.5 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase is primarily related to an increase in trust fees in the current period related to increased volume in estate planning and annuity sales.
Current wording
Fiduciary activities increased $0.1 million for the three months ended September 30, 2026 compared to the same period in 2025, and increased $0.6 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase is primarily related to an increase in trust fees in the current period related to increased volume in estate planning and annuity sales.
Previous wording
Service charges on deposit accounts increased by $0.2 million for the three months ended June 30, 2026 compared to the same period in 2025, and increased $0.5 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase is primarily related to higher transaction-based fee activity in the current period.
Current wording
Service charges on deposit accounts remained relatively flat for the three months ended September 30, 2026 compared to the same period in 2025, and increased $0.5 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase is primarily related to higher transaction-based fee activity in the current period.
Previous wording
Interchange fees increased $0.2 million for the three months ended June 30, 2026 compared to the same period in 2025, and increased by $0.3 million for the six months ended June 30, 2026, as compared to the same periods in 2025. The increase was primarily driven by increases in merchant and debit card fees.
Current wording
Interchange fees remained relatively flat for the three months ended September 30, 2026 compared to the same period in 2025, and increased by $0.4 million for the nine months ended September 30, 2026, as compared to the same periods in 2025. The increase was primarily driven by increases in merchant and debit card fees.
Previous wording
Non-interest expense increased$4.4 million for thethree months ended June 30, 2026 compared to the same period in 2025, and increased $5.9 million for the six months ended June 30, 2026 compared to the same period in 2025. The primary components of the change were as follows:
Current wording
Non-interest expense decreased$11.4 million for thethree months ended September 30, 2026 compared to the same period in 2025, and decreased $5.6 million for the nine months ended September 30, 2026 compared to the same period in 2025. The primary components of the change were as follows:
Previous wording
Salaries and employee benefits expense increased by$1.5 millionfor thethree months ended June 30, 2026 compared to the same period in 2025, and increased $2.2 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase is partially attributable toincreased salary expense related to strategic hiring and annual merit increases, partially offset by a lower level of benefit expense compared with the year ago period.
Current wording
Salaries and employee benefits expense increased by$1.5 millionfor thethree months ended September 30, 2026 compared to the same period in 2025, and increased $3.8 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase is primarily driven by higher employee health insurance expense and higher salaries expense related to strategic hiring and annual merit increases, partially offset by lower bonus and incentive expense.
Previous wording
Outside services and consultants expense decreased by $0.7 million for the three months ended June 30, 2026 compared to the same period in 2025, and decreased $1.2 million for the six months ended June 30, 2026 compared to the same period in 2025. The decrease reflects management's ongoing efforts to reduce the reliance on third party services.
Current wording
Outside services and consultants expense decreased by $1.2 million for the three months ended September 30, 2026 compared to the same period in 2025, and decreased $2.5 million for the nine months ended September 30, 2026 compared to the same period in 2025. The decrease reflects management's ongoing efforts to reduce the reliance on third party services.
Previous wording
Other expenses, which includes corporate and other service expenses, increased by$3.6 million for the three months ended June 30, 2026 compared to the same period in 2025, and increased by $3.9 million for the six months ended June 30, 2026 compared to the same period in 2025. During the second quarter of 2026, the Company recorded a pre-tax expense accrual of $3.1 million related to a lawsuit stemming from 2018 related to a unique circumstance involving
Current wording
Other expenses, which includes corporate and other service expenses, increased by$0.6 million for the three months ended September 30, 2026 compared to the same period in 2025, and increased by $4.4 million for the nine months ended September 30, 2026 compared to the same period in 2025. During the second quarter of 2026, the Company recorded a pre-tax expense accrual of $3.1 million related to a lawsuit stemming from 2018 related to a unique circumstance involving
Previous wording
Net occupancy expenses increased by $0.6 millionfor thethree months ended June 30, 2026 compared to the same period in 2025, and increased by $1.1 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase is primarily driven by increases in building maintenance expenses in the current period.
Current wording
Net occupancy expenses increased by $0.4 millionfor thethree months ended September 30, 2026 compared to the same period in 2025, and increased by $1.4 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase is primarily driven by higher snow and lawn care maintenance, furniture and equipment expense, and related depreciation expense, partially offset by lower building maintenance expenses in the current period.
Previous wording
Data processing expense increased by $0.7 millionfor thethree months ended June 30, 2026 compared to the same period in 2025, and increased by $1.2 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase is primarily driven by increases in debit card processing activity and software maintenance.
Current wording
Data processing expense increased by $0.4 millionfor thethree months ended September 30, 2026 compared to the same period in 2025, and increased by $1.6 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase is primarily driven by higher software maintenance and support costs and increased data processing outside services, partially offset by a decrease in debit card and ATM processing expense.
Previous wording
Loan expense increased by $0.2 millionfor thethree months ended June 30, 2026 compared to the same period in 2025, and increased by $0.7 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase is primarily related to a higher amount of production related expense in the current period and a higher amount of reimbursements in the year ago period.
Current wording
Loan expense increased by $0.3 millionfor thethree months ended September 30, 2026 compared to the same period in 2025, and increased by $1.0 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase is primarily related to a higher amount of production related expense in the current period and a higher amount of reimbursements in the year ago period.
Previous wording
Professional fees decreased by $0.8 million for the three months ended June 30, 2026 compared to the same period in 2025, and decreased by $0.7 million for the six months ended June 30, 2026 compared to the same period in 2025. The decrease is primarily related to a reimbursement of previously incurred legal fees and an overall reduction in gross expenses in the current period.
Current wording
Professional fees decreased by $0.2 million for the three months ended September 30, 2026 compared to the same period in 2025, and decreased by $0.9 million for the nine months ended September 30, 2026 compared to the same period in 2025. The decrease in the current quarter compared with the year ago period is primarily related to lower gross expenses from the resolution of outstanding legal items near the end of 2025. In addition, the reduction in the year-to-date period compared with the comparative period a year ago is partially owed to a reimbursement of previously incurred legal expense during the second quarter of 2026.
Previous wording
Horizon assesses the adequacy of its Allowance for Credit Losses (“ACL”) by regularly reviewing the performance of its loan portfolio against various economic backdrops, which periodically change. During the three months ended June 30, 2026, the Company recorded a provision for credit losses on loans of $1.2 million. This compares to a provision for credit losses on loans of $2.0 million compared to the same period in 2025. The decrease in the provision for credit losses on loans compared to the prior-year period was primarily driven by a reduction in forecasted credit losses related to changes in economic assumptions, partially offset by increases in specific reserves on certain loans. The total provision for credit losses, including the reduction in reserve for unfunded lending commitments of $0.3 million in the current period, was $0.9 million for three months ended June 30, 2026, compared to a provision for credit losses of $2.5 million for the same period in 2025.
Current wording
Horizon assesses the adequacy of its Allowance for Credit Losses (“ACL”) by regularly reviewing the performance of its loan portfolio against various economic backdrops, which periodically change. During the three months ended September 30, 2026, the Company recorded a provision for credit losses on loans of $1.6 million. This compares to a benefit for credit losses on loans of $3.4 million for the same period in 2025. The increase in the provision for credit losses on loans compared to the prior-year period was primarily attributable to the release of approximately $3.1 million in total Allowance against the sold portion of the indirect auto portfolio during the third quarter of 2025, which did not recur. The total provision for credit losses, including the reduction in reserve for unfunded lending commitments is a benefit of credit losses of $0.3 million in the current period, was $1.3 million for three months ended September 30, 2026, compared to a benefit for credit losses of $3.6 million for the same period in 2025.
Previous wording
For the three months ended June 30, 2026, net loan charge-offs increased by $0.4 million to $0.6 million, compared to $0.3 million during the same period in 2025. The increase in charge-offs is due to modest increases in charge-offs in the commercial and consumer portfolios during the current period.
Current wording
For the three months ended September 30, 2026, net loan charge-offs increased by $0.4 million to $1.2 million, compared to $0.8 million during the same period in 2025. The increase in charge-offs is due to modest increases in charge-offs in the commercial portfolio during the current period.
Previous wording
The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.05% at June 30, 2026, compared to 1.09% at June 30, 2025.
Current wording
The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.04% at September 30, 2026, compared to 1.04% at September 30, 2025.
Previous wording
As of June 30, 2026, the liability for unfunded lending commitments was $1.3 million compared to $2.3 million as of June 30, 2025.
Current wording
As of September 30, 2026, the liability for unfunded lending commitments was $1.0 million compared to $2.3 million as of September 30, 2025.
Previous wording
The Company’s income tax expense for the three months ended June 30, 2026 was $5.8 million compared to $3.8 million for the same period in 2025, resulting in effective tax rates of 19.0% and 15.4% for those periods, respectively. The Company’s income tax expense for thesix months ended June 30, 2026 was $12.0 million compared to $7.9 million for the same period in 2025, resulting in effective tax rates of 19.0% and 15.0%, respectively. The increase in the effective tax rate for three months ended June 30, 2026 was primarily due to expectations of higher pre-tax income in 2026 as compared to 2025, and less exposure to tax preferential assets in the investment portfolio.
Current wording
The Company’s income tax expense for the three months ended September 30, 2026 was $5.6 million compared to a tax benefit of $64.3 million for the same period in 2025, resulting in effective tax rates of 16.4% and 22.5% for those periods, respectively. The Company’s income tax expense for thenine months ended September 30, 2026 was $17.6 million compared to a tax benefit of $56.4 million for the same period in 2025, resulting in effective tax rates of 18.1% and 24.1%, respectively. The decrease in the effective tax rate for three months ended September 30, 2026 was primarily due to thefavorable impact of a discrete benefit of $0.9 million in the third quarter of 2026.
Previous wording
Total assets increased by $137.5 million, or 2.14%, as of June 30, 2026, from $6.4 billion as of December 31, 2025. The increase in total assets is primarily due to an increase in total cash and cash equivalents of $78.5 million, or 56.28%, and an increase in investment securities available-for-sale of $22.4 million, or 2.55%. The increase was partially offset by a decrease in FHLB stock of $38.3 million, or 83.77%, and a decrease in loans held for sale of $4.6 million, or 47.36%,
Current wording
Total assets increased by $154.5 million, or 2.4%, as of September 30, 2026, from $6.4 billion as of December 31, 2025. The increase in total assets is primarily due to an increase in total cash and cash equivalents of $70.8 million, or 50.8%, and an increase in other assets of $21.7 million or 10.1%. The increase was partially offset by a decrease in FHLB stock of $38.3 million, or 83.8%, a decrease in investment securities available-for-sale of $18.0 million, or 2.1% and a decrease in loans held for sale of $6.3 million, or 64.0%,
Previous wording
Total loans HFI, net of ACL, increased $82.0 million, to $4.9 billion, as of June 30, 2026 compared to balances as of December 31, 2025, due to growth in commercial loans that was partially offset by runoff within the consumer loan portfolio. The company continues to maintain a balanced growth profile across various geographies, products and industries, and holds a diverse lending portfolio consisting primarily of commercial real estate, consumer, residential and commercial and industrial portfolios.
Current wording
Total loans HFI, net of ACL, increased $128.4 million, to $5.0 billion, as of September 30, 2026 compared to balances as of December 31, 2025. The increase is primarily due to growth in the commercial and consumer loans, partially offset by runoff in indirect installment loans. The company continues to maintain a balanced growth profile across various geographies, products and industries, and holds a diverse lending portfolio consisting primarily of commercial real estate, consumer, residential and commercial and industrial portfolios.
Previous wording
Total investment securities increased $22.4 million, or 2.55%, to $897.8 million as of June 30, 2026 when compared to balances as of December 31, 2025. During the first six months of 2026, the Company purchased approximately $60.9 million of available for sale securities, which was offset by amortization and maturities within the portfolio and changes in market value.
Current wording
Total available for sale securities decreased $18.0 million, or 2.1%, to $857.4 million as of September 30, 2026 when compared to balances as of December 31, 2025. During the first nine months of 2026, the Company purchased approximately $108.2 million of available for sale securities and sold $5.5 million, which was offset by amortization and maturities within the portfolio and changes in the fair market value of the available for sale portfolio related to the increase in interest rates.
Previous wording
Total deposit balances increased by $124.8 million, or 2.37%, to$5.4 billion as of June 30, 2026 when compared to balances as of December 31, 2025. The increase was driven by a $76.8 million increase in savings and money market deposits, reflecting continued success in core deposit gathering efforts, a $24.5 million increase in interest bearing deposits and a $21.6 million increase in non-interest bearing deposits. The Company maintains a granular and tenured deposit base, with a continued focus on core commercial and consumer deposit gathering.
Current wording
Total deposit balances increased by $206.0 million, or 3.9%, to$5.5 billion as of September 30, 2026 when compared to balances as of December 31, 2025. The increase was driven by a $108.5 million increase in interest bearing deposits, a $89.0 million increase in savings and money market deposits, reflecting continued success in core deposit gathering efforts, and a $30.5 million increase in non-interest bearing deposits. The increase was partially offset by a decrease of $22.0 million in time deposits. The Company maintains a granular and tenured deposit base, with a continued focus on core commercial and consumer deposit gathering.
Previous wording
Total borrowings decreased by $25.6 million, or 10.30%, to $223.0 million as of June 30, 2026 when compared to balances as of December 31, 2025, related to a decrease in repurchase agreements.
Current wording
Total borrowings decreased by $74.0 million, or 29.8%, to $174.6 million as of September 30, 2026 when compared to balances as of December 31, 2025, related to a decrease in repurchase agreements.
Previous wording
The ACL balance at June 30, 2026 was $51.9 million, or 1.05% of period-end loans HFI, compared to an ACL balance of $51.3 million at December 31, 2025, or 1.05% of loans HFI. The increase in the ACL is primarily due to net loan growth and an increase in specific reserves on select commercial loans.
Current wording
The ACL balance at September 30, 2026 was $52.3 million, or 1.04% of period-end loans HFI, compared to an ACL balance of $51.3 million at December 31, 2025, or 1.05% of loans HFI. The increase in the ACL is primarily due to net loan growth and an increase in specific reserves on select commercial loans.
Previous wording
As of June 30, 2026, total non-accrual loans decreased by $0.2 million, or 0.48%, from December 31, 2025, to 0.65% of total loans HFI. Total non-performing assets increased $3.1 million, or 7.54%, from December 31, 2025, to 0.66% of total assets.
Current wording
As of September 30, 2026, total non-accrual loans increased by $1.2 million, or 3.74%, from December 31, 2025, to 0.67% of total loans HFI. Total non-performing assets increased $4.0 million, or 9.87%, from December 31, 2025, to 0.68% of total assets.
Previous wording
During the six months ended June 30, 2026, net charge-offs were$1.2 million, or 5 basis points annualized of average loans in the period, a change from$1.1 million, or 5 basis point annualized of average loans in the year ago comparable period.
Current wording
During the nine months ended September 30, 2026, net charge-offs were$2.4 million, or 7 basis points annualized of average loans in the period, a change from$2.0 million, or 5 basis points annualized of average loans in the year ago comparable period.
Previous wording
The Bank maintains a stable base of core deposits provided by long–standing relationships with individuals and local businesses. These deposits are the principal source of liquidity for Horizon. Other sources of liquidity for Horizon include earnings, loan repayment, investment security sales and maturities, proceeds from the sale of residential mortgage loans, unpledged investment securities and borrowing relationships with correspondent banks, including the FHLB. At June 30, 2026, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $1.72 billion in unused credit lines with various money center banks, including the FHLB and the FRB Discount Window compared to$1.68 billion at December 31, 2025.
Current wording
The Bank maintains a stable base of core deposits provided by long–standing relationships with individuals and local businesses. These deposits are the principal source of liquidity for Horizon. Other sources of liquidity for Horizon include earnings, loan repayment, investment security sales and maturities, proceeds from the sale of residential mortgage loans, unpledged investment securities and borrowing relationships with correspondent banks, including the FHLB. At September 30, 2026, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $1.62 billion in unused credit lines with various money center banks, including the FHLB and the FRB Discount Window compared to$1.68 billion at December 31, 2025.
Previous wording
The cash flows from the operating, investing and financing activities of the Company resulted in a net increase in cash, cash equivalents and restricted cash of $78.5 million during the six months ended June 30, 2026, as reported in the consolidated statements of cash flows. Operating activities, consisting mainly of net income adjusted for certain non-cash items, provided cash flow of $53.9 million and have historically been a stable source of funds. Investing activities, which occur mainly in the loan and investment securities portfolios, used cash of $64.7 million mainly due to a net change in loans of $84.1 million and purchases of AFS securities of $60.9 million, which was partially offset by proceeds from maturities, calls and principal repayments of securities available for sale of $42.1 million and the redemption of FHLB stock of $38.3 million. Financing activities provided cash of $89.3 million, largely resulting from the proceeds from proceeds from borrowing of $156.2 million and the net change in deposits of $124.8 million, which was partially offset by the repayment of borrowings of $156.4 million, cash used in the net change in repurchase agreements of $19.2 million and $16.5 million in dividends paid on common stock, during the six months ended June 30, 2026.
Current wording
The cash flows from the operating, investing and financing activities of the Company resulted in a net increase in cash, cash equivalents and restricted cash of $70.8 million during the nine months ended September 30, 2026, as reported in the consolidated statements of cash flows. Operating activities, consisting mainly of net income adjusted for certain non-cash items, provided cash flow of $83.3 million and have historically been a stable source of funds. Investing activities, which occur mainly in the loan and investment securities portfolios, used cash of $129.7 million mainly due to a net change in loans of $127.9 million and purchases of AFS securities of $108.2 million, which was partially offset by proceeds from maturities, calls and principal repayments of securities available for sale of $64.1 million and the redemption of FHLB stock of $38.3 million. Financing activities provided cash of $117.3 million, largely resulting from the proceeds from proceeds from borrowing of $159.4 million and the net growth in deposits of $206.0 million, which was partially offset by the repayment of borrowings of $159.5 million, cash used in the net reduction in repurchase agreements of $64.5 million and $24.7 million in dividends paid on common stock, during the nine months ended September 30, 2026.
Previous wording
The capital resources of Horizon and the Bank exceeded regulatory capital ratios for “well capitalized” banks at June 30, 2026. Stockholders’ equity totaled $726.2 million as of June 30, 2026, compared to $688.3 million as of December 31, 2025. The increase in stockholders’ equity during the period was due to an increase in retained earnings of $37.9 million for the six months ended June 30, 2026, and a decrease in accumulated other comprehensive loss of $2.0 million.
Current wording
The capital resources of Horizon and the Bank exceeded regulatory capital ratios for “well capitalized” banks at September 30, 2026. Stockholders’ equity totaled $699.3 million as of September 30, 2026, compared to $688.3 million as of December 31, 2025. The increase in stockholders’ equity during the period was primarily due to an increase in retained earnings of $55.0 million for the nine months ended September 30, 2026, offset by higher losses in accumulated other comprehensive loss of $46.0 million.
Previous wording
As of June 30, 2026, the ratio of total stockholders’ equity to total assets is 11.05%. Book value per common share was $14.21, increasing $0.71 compared to December 31, 2025.
Current wording
As of September 30, 2026, the ratio of total stockholders’ equity to total assets is 10.61%. Book value per common share was $13.68, increasing $0.18 compared to December 31, 2025.
Previous wording
Tangible common equity 1 totaled $565.1 million at June 30, 2026, and the ratio of tangible common equity to tangible assets 1 was 8.81% at June 30, 2026. Tangible book value, which excludes intangible assets from total equity, per common share 1 was $11.06, increasing $0.74 compared to December 31, 2025.
Current wording
Tangible common equity 1 totaled $538.9 million at September 30, 2026, and the ratio of tangible common equity to tangible assets 1 was 8.38% at September 30, 2026. Tangible book value, which excludes intangible assets from total equity, per common share 1 was $10.54, increasing $0.22 compared to December 31, 2025.
Previous wording
Horizon declared common stock dividends in the amount of $0.16 per share during the three months ended June 30, 2026 and $0.16 per share for the same period in 2025. The dividend payout ratio (dividends as a percent of basic earnings per share) was 32% and 31%for the six months ended June 30, 2026 and 2025, respectively. For additional information regarding dividends, see Horizon’s 2025 Annual Report on Form 10–K.
Current wording
Horizon declared common stock dividends in the amount of $0.16 per share during the three months ended September 30, 2026 and $0.16 per share for the same period in 2025. The dividend payout ratio (dividends as a percent of basic earnings per share) was 31% and (12)%for the nine months ended September 30, 2026 and 2025, respectively. For additional information regarding dividends, see Horizon’s 2025 Annual Report on Form 10–K.