Horizon Bancorp Reports $24.9 Million Net Income for Q2 2026, Driven by Increased Net Interest Income

Horizon Bancorp, Inc. reported a net income of $24.9 million for the second quarter of 2026, reflecting an increase of $4.3 million compared to $20.6 million in the same period of 2025. This translates to earnings per diluted share of $0.49, up from $0.47 a year earlier. The growth in net income was primarily driven by an increase in net interest income, which rose by $8.1 million to $63.5 million, alongside a decrease in provision expense of $1.5 million. However, non-interest expenses also increased by $4.4 million, largely due to a $3.1 million legal charge, and tax expenses rose by $2.1 million.

For the first half of 2026, Horizon's net income reached $51.1 million, or $1.00 per diluted share, compared to $44.6 million, or $1.01 per share, in the prior year. The increase was attributed to an $18.1 million rise in net interest income and a $2.5 million reduction in provision expense, although it was partially offset by a $5.9 million increase in non-interest expenses and a $4.1 million rise in tax expenses. The net interest margin improved significantly, with the reported net fully taxable equivalent interest margin increasing to 4.33% for the first half of 2026, up from 3.14% in the same period of 2025.

Horizon Bancorp's total assets increased by $137.5 million, or 2.14%, to $6.57 billion as of June 30, 2026, compared to $6.44 billion at the end of 2025. This growth was primarily driven by a $78.5 million increase in cash and cash equivalents and a $22.4 million rise in investment securities. Total loans held for investment, net of the allowance for credit losses, increased by $82 million to $4.91 billion, supported by growth in commercial loans, while total deposits rose by $124.8 million to $5.4 billion.

The company maintained a strong capital position, with total stockholders' equity increasing to $726.2 million as of June 30, 2026, compared to $688.3 million at the end of 2025. The increase was primarily due to retained earnings growth. Horizon's allowance for credit losses stood at $51.9 million, representing 1.05% of period-end loans held for investment, consistent with the previous year. The company continues to focus on maintaining a balanced growth profile across various geographies and products, while also managing credit quality effectively.

Looking ahead, Horizon Bancorp remains optimistic about its growth trajectory, supported by a solid capital base and a diversified lending portfolio. The company is committed to enhancing its operational efficiency and continuing to adapt to changing market conditions, while also addressing any legal challenges that may arise, such as the recent litigation related to its former indirect auto lending business.