Horizon Bancorp Reports 70.8% Increase in Net Income for Q1 2025

Horizon Bancorp, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with net income rising to $23.9 million, or $0.54 per diluted share, compared to $13.99 million, or $0.32 per diluted share, in the same period last year. This represents a 70.8% increase in net income, driven by a $3.9 million rise in interest income and a $5.1 million decrease in interest expenses. Additionally, non-interest income surged by $6.6 million, although this was partially offset by a $2.2 million increase in non-interest expenses and a $2.8 million rise in tax expenses.

Total assets for Horizon Bancorp decreased by $172.5 million, or 2.2%, to $7.63 billion as of March 31, 2025, primarily due to a $123.8 million decline in cash and cash equivalents and a $64.3 million drop in loans held for sale. However, loans held for investment increased by $62.1 million, or 1.3%, to $4.91 billion, reflecting organic growth in the commercial loan sector. The company also reported a 2.9% increase in total deposits, which rose to $5.77 billion, indicating a stable deposit base.

In terms of operational metrics, Horizon's allowance for credit losses stood at $52.7 million, representing 1.07% of loans held for investment, consistent with the previous quarter. Non-accrual loans increased to $28.8 million, or 0.59% of total loans, while total non-performing assets rose to $31.4 million, or 0.41% of total assets. The company recorded net charge-offs of $0.9 million during the quarter, an increase from $0.3 million in the prior year, primarily attributed to the consumer loan portfolio.

Strategically, Horizon Bancorp has focused on maintaining a balanced growth profile across various geographies and product lines. The company has not engaged in significant acquisitions recently but has emphasized organic growth in its lending portfolio. The management remains optimistic about future performance, citing a favorable interest rate environment and a commitment to enhancing operational efficiency. The outlook for the remainder of 2025 suggests continued focus on expanding its commercial lending capabilities while managing credit quality effectively.

Overall, Horizon Bancorp's first-quarter results reflect a strong financial position, with increased profitability and a solid capital base, despite some challenges in asset management and credit quality. The company continues to navigate a dynamic economic landscape while positioning itself for sustainable growth.