Horizon Bancorp, Inc. reported a consolidated net loss of $150.5 million, or $(3.24) per diluted share, for the fiscal year ending December 31, 2025, a significant decline from a net income of $35.4 million, or $0.80 per diluted share, in 2024. The loss was primarily attributed to a $299.5 million realized loss on the sale of investment securities as part of the company's balance sheet repositioning efforts. Despite the loss, net interest income increased to $229.5 million, up from $188.6 million in the previous year, driven by an expansion in the net interest margin to 3.49% from 2.68%.
In terms of operational changes, Horizon executed a strategic repositioning of its balance sheet in the third quarter of 2025, which included the reclassification of its held-to-maturity investment portfolio to available-for-sale. This move resulted in a significant reduction in total assets, which fell to $6.4 billion from $7.8 billion in 2024. The company also reported a decrease in total loans held for investment, which amounted to $4.9 billion, down slightly from $4.8 billion in the prior year, largely due to the sale of its mortgage warehouse and indirect auto portfolios.
Horizon maintained a strong credit quality profile, with non-performing loans totaling $34.9 million, representing 0.67% of total loans held for investment. The allowance for credit losses was $51.3 million, or 1.05% of total loans, reflecting a slight decrease from 1.07% in 2024. The company reported net charge-offs of $2.9 million, or 0.06% of average loans, compared to $1.9 million, or 0.04%, in the previous year.
Looking ahead, Horizon's management expressed optimism about the company's ability to navigate the current economic landscape, emphasizing a focus on organic growth in commercial loans and a commitment to maintaining strong credit quality. The company also highlighted its robust capital position, with total capital ratios exceeding regulatory requirements, positioning it well for future opportunities and challenges in the banking sector.
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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