Horizon Bancorp earns $28.7 million in third quarter, beating market estimates
Key Facts
Horizon Bancorp reported net income of $28.7 million in the third quarter of 2026, compared with $24.9 million in the second quarter, according to the bank’s filing with the U.S. Securities and Exchange Commission. Earnings per share were $0.56, exceeding the market estimate by $0.02, according to a Seeking Alpha summary. Revenue reached $78.15 million, about $162.75 thousand above estimates. The year-over-year comparison reflects a sharp turnaround in net income, as the bank posted a loss of $222.0 million in the third quarter of 2025. The annual earnings figure therefore comes against an exceptional comparison base, alongside an improvement in banking activity during the quarter.
Net interest income was the main driver of the operating improvement, reaching $65.2 million, up 11.6% from $58.4 million in the same period last year, according to the bank’s filing. On an FTE basis, net interest income rose to $66.2 million from $64.6 million in the second quarter. The net interest margin on an FTE basis held at 4.37% during the quarter. The bank attributed the steady margin to “continued discipline in loan and deposit pricing, and favorable cash flow redeployment.” These figures show interest income growth alongside a margin that held steady from the previous quarter.
Total deposits increased by $81.2 million during the quarter, equivalent to an annualized growth rate of 6.0%, according to bank data. Non-maturity deposits rose at an annualized rate of 9.7%. The total cost of deposits, including noninterest-bearing balances, was 1.57% in the third quarter. The figures place deposit growth alongside the bank’s disclosed funding cost, as the net interest margin held steady. Discipline in deposit pricing was also among the factors the bank cited in explaining the stable margin.
On credit, the provision for loan losses rose to $1.3 million in the third quarter, from $0.9 million in the second quarter, according to the bank’s filing. The bank attributed the increase mainly to changing economic expectations, loan growth and higher specific provisions for commercial loans. Meanwhile, net charge-offs, calculated on an annualized basis, were 0.10% of average loans. Nonperforming assets reached 0.68% of total assets. These indicators combine higher quarterly provisions with the charge-off and nonperforming-asset levels reported by the bank.
For the nine months ended September 30, 2026, Horizon Bancorp reported net income of about $79.7 million, according to the filing. That compares with a net loss of $177.4 million in the corresponding nine months of 2025. The difference indicates that the turnaround in net income extends beyond the third quarter, although the comparison remains affected by the loss in the prior period. The filing describes the company as a bank holding company with $6.6 billion in assets, operating through Horizon Bank in Midwestern markets. The bank held a third-quarter earnings review call on October 22, 2026.
Management’s fourth-quarter guidance projected annualized growth in the mid-single digits for both loans and deposits, according to Seeking Alpha’s summary of the earnings call. The bank also set net interest income, not calculated on an FTE basis, at between $66 and $67 million. The guidance indicated that the margin would remain stable or expand slightly. In the stock market, the bank’s shares, HBNC, closed at $20.69 on October 28, 2026, according to EL7 data. That closing price places the stock at its level recorded that day, while the available filing here does not include the session’s trading range.