Q4 2025 Horizon Bancorp Inc Earnings Call Transcript
Key Points
- Horizon Bancorp (IN) (HBNC) reported a strong fourth quarter with an annualized return on average assets above 1.6% and return on average equity approaching 16%.
- The company achieved a net interest margin of 4.29%, marking the ninth consecutive quarter of net interest margin expansion.
- Commercial loans increased by $76 million in the fourth quarter, representing 9% growth on an annualized basis, with strong performance in key markets like Troy and Kalamazoo, Michigan.
- Fee income showed progress with a 7% year-over-year increase, led by strong results in wealth management and mortgage fees.
- Horizon Bancorp (IN) (HBNC) is well-positioned for 2026 with a focus on sustainable long-term value creation, disciplined operating model, and peer-leading capital generation.
- Non-performing loans increased to $34.9 million, representing 72 basis points of loans for the fourth quarter, up from 64 basis points in the third quarter.
- There was a modest increase in non-performing assets over the past quarters, raising concerns about potential pockets of stress.
- The company experienced a rise in commercial nonaccrual loans by $2.2 million and residential nonaccrual loans by $831,000.
- The consumer loan portfolio saw modest declines, with a focus on commercial relationship lending.
- Expenses included $0.7 million related to the write-off of the remaining unamortized issuance expense for subordinated notes, impacting overall expense management.
Good morning, everyone, and welcome to the Horizon Bancorp, Inc. conference call to discuss financial results for the fourth quarter of 2025. (Operator Instructions) Now I will turn the call over to Mark Secor, Executive Vice President, Chief Administration Officer, for the opening introduction.
Good morning, and welcome to our conference call to review the fourth quarter results. Please remember that today's call may contain statements that are forward-looking in nature. These statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those discussed, including those factors noted in the slide presentation.
Additional information about factors that could cause actual results to differ materially is contained in Horizon's most recent Form 10-K and its later filings with the Securities and Exchange Commission. In addition, management may refer to certain non-GAAP financial measures that are intended to
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