Horizon Bancorp, Inc. Reports Positive Fourth Quarter 2025 Results, Entering 2026 with Peer Leading Performance Metrics (Form 8-K)

Horizon Bancorp, Inc. Reports Positive Fourth Quarter 2025 Results, Entering 2026 with Peer Leading Performance Metrics

Michigan City, Indiana, January 21, 2026 (GLOBE NEWSWIRE) - (NASDAQ GS: HBNC) - Horizon Bancorp, Inc. ("Horizon" or the "Company"), the parent company of Horizon Bank (the "Bank"), announced its unaudited financial results for the three months ended December 31, 2025.

"Horizon's fourth quarter results demonstrate excellent execution of the balance sheet repositioning and the core strength of our community banking model. We have delivered on our commitment to shareholders to create a top performing community bank with durable, peer-leading performance metrics and shareholder returns. The fourth quarter exceeded our prior performance estimates, with annualized return on average assets exceeding 1.60%, returns on average equity approaching 16%, and a net interest margin of 4.29%. We are pleased with the results for our shareholders and the transparency the quarter provided to highlight the strength of Horizon's community banking model, which remains the cornerstone of our value proposition", President and CEO, Thomas Prame stated. "More importantly, the Company is kicking off the new year from a position of strength, with the franchise well positioned to deliver durable earnings and continued top-tier profitability metrics in 2026. The commercial loan engine continues to produce disciplined and high-quality growth, which we expect to fund through our client-focused branch distribution network and our relationship-based community bankers. Credit quality remains excellent, and expenses continue to be well managed. As we look ahead, we will remain focused on creating sustainable long-term value for our shareholders through our disciplined operating model, consistent profitable growth and peer leading capital generation".

Net income for the three months ended December 31, 2025 was $26.9 million, or $0.53 per diluted share, compared to a net loss of $222.0 million, or $(4.69), for the third quarter of 2025 and a net loss of $10.9 million, or $(0.25) per diluted share, for the fourth quarter of 2024.

Net loss for the twelve months ended December 31, 2025 was $150.5 million, or $(3.24) per diluted share, compared to net income of $35.4 million, or $0.80, for the twelve months ended December 31, 2024.

1

Horizon Bancorp, Inc. Reports Fourth Quarter 2025 Results

Fourth Quarter 2025 Highlights

•Strong performance of the core community banking model, combined with the successful completion of the balance sheet repositioning efforts, resulted in significant performance improvement for the quarter. The Company's return on average assets and return on average equity improved to 1.63% and 15.71%, respectively. The franchise is well positioned to continue to achieve top performance metrics moving forward.

•Net interest income of $63.5 million increased 8.7% compared with $58.4 million for the three months ended September 30, 2025, and 19.5% compared with $53.1 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the ninth consecutive quarter, to 4.29%, compared with 3.52% for the three months ended September 30, 2025 and 2.97% for the three months ended December 31, 2024.

•Total loans held for investment ("HFI") increased 4.4% compared to the linked quarter annualized, with strong organic commercial loan growth of $75.8 million, or 9.1% annualized. Loan pipelines continue to be consistent, reflective of Horizon's attractive markets and embedded community banking model.

•Funding remains durable with costs trending favorably. Non-interest bearing deposits remained relatively flat, while declines in interest-bearing balances largely reflected the communicated planned exit of high-cost, transactional deposits. Total interest-bearing liability cost performed well, decreasing by another 34 bps during the quarter.

•Credit quality remained strong, with annualized net charge offs of 0.08% of average loans during the fourth quarter. Non-performing assets remain well within expected ranges, with non-performing assets to total assets of 63 bps for the fourth quarter.

•Expenses continued to be well managed, and were comparable to the third quarter when considering a select few items related to the balance sheet activities, displaying management's continued commitment to generate positive operating leverage through a more efficient expense base.

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

2

Horizon Bancorp, Inc. Reports Fourth Quarter 2025 Results

			Financial Highlights
			(Dollars in Thousands Except Share and Per Share Data and Ratios)
			Three Months Ended
			December 31,						September 30,						June 30,						March 31,						December 31,
			2025						2025						2025						2025						2024
Income statement:
Net interest income			$	63,476					$	58,386					$	55,355					$	52,267					$	53,127
Provision for credit losses			1,630						(3,572)						2,462						1,376						1,171
Non-interest income (loss)			11,463						(295,334)						10,920						16,499						(28,954)
Non-interest expense			40,615						52,952						39,417						39,306						44,935
Income tax expense (benefit)			5,773						(64,338)						3,752						4,141						(11,051)
Net Income (Loss)			$	26,921					$	(221,990)					$	20,644					$	23,943					$	(10,882)
Per share data:
Basic earnings (loss) per share			$	0.53					$	(4.69)					$	0.47					$	0.55					$	(0.25)
Diluted earnings (loss) per share			0.53						(4.69)						0.47						0.54						(0.25)
Cash dividends declared per common share			0.16						0.16						0.16						0.16						0.16
Book value per common share			13.50						12.96						18.06						17.72						17.46
Market value - high			18.47						16.88						15.88						17.76						18.76
Market value - low			15.04						15.01						12.92						15.00						14.57
Weighted average shares outstanding - Basic			50,975,693						47,311,642						43,794,490						43,777,109						43,721,211
Weighted average shares outstanding - Diluted			51,277,134						47,311,642						44,034,663						43,954,164						43,721,211
Common shares outstanding (end of period)			50,978,030						50,970,530						43,801,507						43,785,932						43,722,086
Key ratios:
Return on average assets			1.63		%				(12.07)		%				1.09		%				1.25		%				(0.56)		%
Return on average stockholders' equity			15.71						(120.37)						10.49						12.44						(5.73)
Total equity to total assets			10.69						9.84						10.34						10.18						9.79
Total loans to deposit ratio			92.62						87.41						87.52						85.21						87.75
Allowance for credit losses to HFI loans			1.05						1.04						1.09						1.07						1.07
Annualized net charge-offs of average total loans (1)			0.08						0.07						0.02						0.07						0.05
Efficiency ratio			54.20						(22.35)						59.47						57.16						185.89
Key metrics (Non-GAAP) (2)
Net FTE interest margin			4.29		%				3.52		%				3.23		%				3.04		%				2.97		%
Return on average tangible common equity			20.66						(155.03)						13.24						15.79						(7.35)
Tangible common equity to tangible assets			8.38						7.60						8.37						8.19						7.83
Tangible book value per common share			$	10.32					$	9.76					$	14.32					$	13.96					$	13.68
(1) Average total loans includes loans held for investment and held for sale.
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

3

Horizon Bancorp, Inc. Reports Fourth Quarter 2025 Results

Income Statement Highlights

Net Interest Income

Net interest income was $63.5 million in the fourth quarter of 2025, compared to $58.4 million in the third quarter of 2025, driven by the continued expansion of the Company's net FTE interest margin1, which increased to 4.29% for the fourth quarter of 2025, compared to 3.52% for the third quarter of 2025. The margin saw continued expansion as a by product of the balance sheet repositioning, stronger realized deposit betas relative to recent reductions in short-term interest rates and relatively stable overall earning asset yields since affecting the balance sheet actions in late August.

Provision for Credit Losses

During the fourth quarter of 2025, the Company recorded a provision for credit losses of $1.6 million. This compares to a recorded benefit for credit losses of $3.6 million during the third quarter of 2025, and a provision for credit losses expense of $1.2 million during the fourth quarter of 2024. The increase in the provision for credit losses during the fourth quarter of 2025 when compared with the third quarter of 2025 was primarily attributable to the release of approximately $3.1 million in total Allowance against the sold portion of the Indirect Auto portfolio and the release of the $0.2 million reserve against the previous Held-To-Maturity investment portfolio in the third quarter, which did not recur in the fourth quarter. Additionally, the Provision increased primarily due to changes in the baseline economic outlook.

For the fourth quarter of 2025, Net Charge-Offs were $1.0 million, or an annualized 0.08% of average loans outstanding, compared to Net Charge-Offs of $0.8 million, or an annualized 0.07% of average loans outstanding for the third quarter of 2025, and Net Charge-Offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the fourth quarter of 2024.

The Company's Allowance for Credit Losses as a percentage of period-end loans HFI was 1.05% at December 31, 2025, compared to 1.04% at September 30, 2025 and 1.07% at December 31, 2024.

Non-Interest Income

For the Quarter Ended			December 31,						September 30,						June 30,						March 31,						December 31,
(Dollars in Thousands)			2025						2025						2025						2025						2024
Non-interest (Loss) Income
Service charges on deposit accounts			$	3,341					$	3,474					$	3,208					$	3,208					$	3,276
Wire transfer fees			66						71						69						71						124
Interchange fees			3,445						3,510						3,403						3,241						3,353
Fiduciary activities			1,560						1,363						1,251						1,326						1,313
Gain (loss) on sale of investment securities			1						(299,132)						-						(407)						(39,140)
Gain on sale of mortgage loans			1,296						1,208						1,219						1,076						1,071
Mortgage servicing income net of impairment			352						351						375						385						376
Increase in cash value of bank owned life insurance			360						379						346						335						335
Other income (loss)			1,042						(6,558)						1,049						7,264						338
Total non-interest (loss) income			$	11,463					$	(295,334)					$	10,920					$	16,499					$	(28,954)

Total Non-Interest Income was $11.5 million in the fourth quarter of 2025, compared to Non-Interest (Loss) of $295.3 million in the third quarter of 2025. The increase in Non-Interest Income of $306.8 million is due to the $299.1 million loss on the sale investment securities and the pre-tax loss of $7.7 million on the sale of the Company's Indirect Auto portfolio, both of which were related to the balance sheet repositioning efforts during the third quarter, which did not recur. Other categories remained relatively unchanged when compared with the prior period.

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

4

Horizon Bancorp, Inc. Reports Fourth Quarter 2025 Results

Non-Interest Expense

For the Quarter Ended			December 31,						September 30,						June 30,						March 31,						December 31,
(Dollars in Thousands)			2025						2025						2025						2025						2024
Non-interest Expense
Salaries and employee benefits			$	21,895					$	22,698					$	22,731					$	22,414					$	25,564
Net occupancy expenses			3,718						3,321						3,127						3,702						3,431
Data processing			3,128						2,933						2,951						2,872						2,841
Professional fees			1,083						808						735						826						736
Outside services and consultants			3,035						3,844						3,278						3,265						4,470
Loan expense			1,183						1,237						1,231						689						1,285
FDIC insurance expense			1,251						1,345						1,216						1,288						1,193
Core deposit intangible amortization			706						706						816						816						843
Merger related expenses			-						-						-						305						-
Prepayment penalties			-						12,680						-						-						-
Other losses			732						131						245						228						371
Other expense			3,884						3,249						3,087						2,901						4,201
Total non-interest expense			$	40,615					$	52,952					$	39,417					$	39,306					$	44,935

Total Non-Interest Expense was $40.6 million in the fourth quarter of 2025, compared with $53.0 million in the third quarter of 2025. The decrease in Non-Interest Expense during the fourth quarter of 2025 when compared with the prior period was primarily driven by a $12.7 million prepayment penalty related to the payoff of $700 million in FHLB advances during the third quarter, which did not recur. The increase in Other Losses was the result of the write off of unamortized issuance costs of $0.7 million related to the early redemption of the Company's subordinated notes due 2030. Apart from this specific item, expenses were relatively unchanged from the prior quarter, with declines in personnel expense offset by higher seasonal occupancy expenses, marketing expense and higher professional expense from legal fees to settle certain legacy items.

Income Taxes

Horizon recorded a net tax expense of $5.8 million for the fourth quarter of 2025, resulting in an effective tax rate of 17.7%, which is consistent with the Company's estimated annual effective tax rate.

Balance Sheet Highlights

Total assets decreased by $275.9 million, or 4.1%, to $6.4 billion as of December 31, 2025, from $6.7 billion as of September 30, 2025. The decrease in total assets is primarily due to the decrease in interest earning deposits of $309.2 million, a decrease in other assets of $10.8 million, a decrease in cash of $9.6 million, and a decrease in total investment securities of $4.5 million. Total loans were $4.9 billion at December 31, 2025, an increase of $60.7 million from September 30, 2025 balances, primarily driven by organic commercial loan growth.

Total deposits decreased by $245.5 million, or 4.4%, to $5.3 billion as of December 31, 2025 when compared to balances as of September 30, 2025, which is largely attributable to the intentional runoff of another $195 million in higher-cost transactional deposit balances. The decrease also was driven by a decrease in time deposits of $97.2 million, a decrease of interest bearing deposits of $75.6 million, and a decrease in savings and money market deposits of $28.5 million. Non-interest bearing deposit balances decreased $44.2 million in the current period, which is largely attributable to seasonal trends, but increased from the year ago period. Subordinated notes balances decreased by $55.8 million during the quarter related to the early redemption of the Company's subordinated notes due 2030, as previously planned.

5

Horizon Bancorp, Inc. Reports Fourth Quarter 2025 Results

Capital

The following table presents the Consolidated Regulatory Capital Ratios of the Company for the previous three quarters, and the Company's preliminary estimate of its consolidated regulatory capital ratios for the quarter ended December 31, 2025:

For the Quarter Ended						December 31,						September 30,						June 30,						March 31,
						2025*						2025						2025						2025
Consolidated Capital Ratios
Total capital (to risk-weighted assets)						14.37		%				15.00		%				14.44		%				14.26		%
Tier 1 capital (to risk-weighted assets)						11.52						11.27						12.48						12.33
Common equity tier 1 capital (to risk-weighted assets)						10.43						10.17						11.48						11.32
Tier 1 capital (to average assets)						9.57						8.22						9.59						9.25
*Preliminary estimate - may be subject to change

As of December 31, 2025, the ratio of total stockholders' equity to total assets is 10.69%. Book value per common share was $13.50, increasing $0.54 during the fourth quarter of 2025.

Tangible common equity1 totaled $525.9 million at December 31, 2025, and the ratio of tangible common equity to tangible assets1 was 8.38% at December 31, 2025, up from 7.60% at September 30, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $10.32, increasing $0.56 during the fourth quarter of 2025.

Credit Quality

As of December 31, 2025, total non-accrual loans increased by $3.1 million from September 30, 2025, to 0.67% of total loans HFI. Total non-performing assets increased $4.9 million, to $40.6 million, compared to $35.7 million as of September 30, 2025. The ratio of non-performing assets to total assets was 0.63%, compared to 0.53% as of September 30, 2025.

For the quarter ended December 31, 2025, net charge-offs were $1.0 million, compared to $0.8 million as of September 30, 2025, or 0.08% annualized of average loans.

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

6

Horizon Bancorp, Inc. Reports Fourth Quarter 2025 Results

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its fourth quarter financial results and operating performance.

Participants may access the live conference call on January 22, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the "Horizon Bancorp, Inc. Call." Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through January 30, 2026. The replay may be accessed by dialing 855-669-9658 from the United States and Canada, or 1-412-317-0088 from other international locations, and entering the access code 1841881.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.4 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures