Horizon Bancorp Reports $26.2 Million Net Income for Q1 2026

Horizon Bancorp, Inc. reported a net income of $26.2 million for the first quarter of 2026, reflecting an increase of $2.2 million compared to $23.9 million in the same period of 2025. This translates to earnings per diluted share of $0.51, down slightly from $0.54 a year earlier. The growth in net income was primarily driven by a $10 million increase in net interest income, which rose to $62.2 million, alongside a $1 million reduction in provision expense. However, these gains were partially offset by a $5.3 million decline in non-interest income, a $2 million increase in tax expenses, and a $1.4 million rise in non-interest expenses.

The company's total assets increased by $127.6 million, or 2%, to $6.56 billion as of March 31, 2026, compared to $6.44 billion at the end of 2025. This growth was largely attributed to an increase in cash and cash equivalents, which rose by $119.6 million, or 85.8%. Total loans held for investment (HFI) remained stable, increasing slightly to $4.88 billion, with growth in commercial loans offset by declines in consumer and residential loan portfolios. Total deposits also saw a rise of $146.9 million, or 2.8%, driven by increases in time deposits and non-interest-bearing demand deposits.

In terms of operational metrics, Horizon's allowance for credit losses (ACL) stood at $51.3 million, representing 1.05% of period-end loans HFI, unchanged from the previous quarter. Non-accrual loans increased by $2.3 million to $34.8 million, accounting for 0.71% of total loans HFI. The company reported net charge-offs of $0.6 million for the quarter, a decrease from $0.9 million in the same period last year. The overall credit quality indicators remained stable, with the ACL to non-performing loans ratio at 138.66%.

Strategically, Horizon continues to focus on maintaining a balanced growth profile across various geographies and products. The company has emphasized core deposit gathering efforts, which have proven successful in increasing its deposit base. Looking ahead, Horizon's management remains optimistic about its financial performance, although it acknowledges potential risks from macroeconomic conditions, regulatory changes, and competitive pressures in the banking sector. The company is well-capitalized, meeting all regulatory capital requirements, and plans to continue its focus on strategic growth and operational efficiency.