Horizon Bancorp, Inc. reported unaudited results for the three months ended March 31, 2026, showing net income of $26.2 million, or $0.51 per diluted share, a slight decline from the $26.9 million ($0.53) reported in the fourth quarter of 2025. Revenue for the quarter was $73.5 million, a miss of $0.47 million (0.66%) versus the consensus estimate of $73.97 million, while net interest income was $62.2 million, matching the 4.29% net interest margin reported in Q4 2025.
The revenue shortfall reflects weaker top‑line performance in certain segments, but the company’s earnings beat was driven by disciplined cost management and a robust net interest income that offset the revenue miss. The 4.29% net interest margin remained flat, a result of an elevated cash balance that dampened the margin by about four basis points, yet the margin still demonstrates strong pricing power and efficient balance‑sheet management.
Provision for credit losses fell to $0.4 million from $1.6 million in Q4 2025, and net charge‑offs were $0.6 million, representing a 0.05% annualized rate of average loans. The allowance for credit losses stayed at 1.05% of period‑end loans, unchanged from December 31, 2025, indicating stable credit quality.
Total assets grew 2.0% to $6.6 billion and total loans increased to $4.9 billion. Deposits rose 2.8% to $5.4 billion, driven by a $146.9 million increase—an 11.3% annualized growth—highlighting the effectiveness of the bank’s core deposit‑gathering strategy.
Management maintained its full‑year 2026 guidance, projecting mid‑single‑digit growth in loans and deposits, a stable full‑time equivalent net interest margin of 4.25%‑4.35%, and non‑interest expense in the mid‑$160 million range. This unchanged outlook signals confidence in the bank’s operating model and its ability to sustain profitability amid market volatility.
Thomas M. Prame, Chief Executive Officer and President, said, "Most importantly, our long‑term shareholder value proposition remained steadfast, aimed at delivering a durable profitability profile, disciplined organic growth and peer‑leading capital generation." He added, "Horizon's first quarter results demonstrate the consistency of our profitability profile and the strength of Horizon's high quality community banking model. Annualized returns on average assets again exceeded 1.60% and the net interest margin continued to be durable at 4.29%. Notably, our strategic focus on core deposit gathering yielded significant results during the quarter, delivering 11% annualized growth, led by 23% annualized growth in non‑interest‑bearing balances."
The market reaction was muted; the stock closed at $17.55 on April 23, 2026, down 0.74% from the previous session. Investors weighed the EPS beat against the revenue miss, noting that the company’s stable net interest margin and unchanged guidance mitigated concerns about the top‑line shortfall.
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