Horizon Bancorp Reports Significant Increase in Net Income for Q2 2025

Horizon Bancorp, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net income rising to $20.6 million, or $0.47 per diluted share, compared to $14.1 million, or $0.32 per diluted share, in the same period last year. This increase of $6.5 million was driven by a $4.5 million rise in interest income, a $5.6 million decrease in interest expense, and a $0.4 million increase in non-interest income. For the first half of 2025, net income reached $44.6 million, up from $28.1 million in the prior year, reflecting a similar trend in interest income and expense.

Total assets for Horizon Bancorp decreased by $149.1 million, or 1.9%, to $7.65 billion as of June 30, 2025, primarily due to a $155.5 million reduction in cash and cash equivalents and a $64.6 million decrease in loans held for sale. However, loans held for investment increased by $136.1 million, or 2.8%, to $4.9 billion, indicating continued growth in the commercial lending sector. Total deposits also rose by $99.1 million, or 1.8%, to $5.7 billion, driven by increases in non-interest-bearing and time deposit balances.

Horizon Bancorp's strategic focus on enhancing its loan portfolio is evident, with total loans increasing to $4.9 billion, supported by organic growth in commercial loans. The company maintains a diverse lending portfolio, which includes commercial real estate, consumer, residential, and commercial and industrial loans. The allowance for credit losses stood at $54.4 million, or 1.09% of loans held for investment, reflecting a slight increase from 1.07% at the end of 2024, attributed to growth in commercial loans and a less favorable economic outlook.

In terms of operational metrics, Horizon Bancorp's net interest income for the second quarter increased by 22.3% to $55.4 million, with a net interest margin of 3.23%, up from 2.64% in the prior year. The company reported a total non-interest income of $10.9 million for the quarter, a 4% increase year-over-year, driven by gains in mortgage loan sales and other miscellaneous income. The bank's total stockholders' equity rose to $790.9 million, reflecting strong retained earnings growth, despite cash dividend payments.

Looking ahead, Horizon Bancorp remains optimistic about its growth trajectory, focusing on expanding its lending operations while managing interest rate risks effectively. The company continues to monitor economic conditions and adjust its strategies accordingly, ensuring it remains well-capitalized and positioned for future opportunities.