Horizon Bancorp, Inc. reported a significant decline in financial performance for the third quarter of 2025, posting a net loss of $222.0 million, or $(4.69) per diluted share, compared to a net income of $18.2 million, or $0.42 per diluted share, for the same period in 2024. This downturn was primarily driven by a $299.1 million loss on the sale of investment securities, which was part of the company's strategic balance sheet repositioning efforts. Total interest income increased slightly by $1.9 million, while interest expense decreased by $9.5 million, contributing to a net interest income of $58.4 million, a 24.5% increase from the previous year.
In terms of operational changes, Horizon Bancorp undertook a substantial restructuring of its investment portfolio, moving its entire held-to-maturity securities portfolio to available-for-sale status. This strategic decision resulted in the sale of approximately $1.7 billion in securities, which was a key factor in the reported loss. The company also experienced a decrease in total assets, which fell by $1.1 billion, or 14.0%, to $6.7 billion as of September 30, 2025, largely due to the aforementioned repositioning efforts.
The bank's loan portfolio showed a slight decline, with total loans held for investment decreasing by $23.4 million to $4.8 billion. This was attributed to a reduction in consumer loans and the sale of a portion of the indirect auto portfolio, although there was organic growth in commercial loans amounting to $278.4 million. Total deposits also decreased by $79.8 million, or 1.4%, to $5.5 billion, reflecting the ongoing balance sheet adjustments.
Horizon Bancorp's allowance for credit losses stood at $50.2 million, representing 1.04% of loans held for investment, a slight decrease from 1.07% at the end of 2024. The company reported net charge-offs of $2.0 million for the nine months ended September 30, 2025, compared to $0.9 million in the same period of the previous year. The increase in charge-offs was primarily due to the commercial loan portfolio.
Looking ahead, Horizon Bancorp remains focused on maintaining a balanced growth profile across various geographies and products while managing its capital resources effectively. The company continues to meet regulatory capital requirements and aims to enhance its financial stability through strategic initiatives and careful management of its loan and investment portfolios.
About HORIZON BANCORP INC /IN/
Horizon Bancorp, Inc. is a bank holding company based in Indiana, operating through Horizon Bank, a full-service commercial bank serving northern and central Indiana and Michigan. It offers retail and commercial banking, trust, and insurance services across 71 branches. The company focuses on community banking, regulatory compliance, and financial stability, with assets of $7.8 billion, emphasizing prudent growth, capital adequacy, and customer-centric financial solutions.
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