Horizon Bancorp, Inc.

No revenue or EPS figure was stated in the transcript. Q2 net interest margin expanded 8 basis points sequentially to 4.37%. Noninterest income grew 10% year over year, led by fiduciary activities and mortgage, each up about 20% year on year. Expenses were $43.8 million, including a previously announced $3.1 million legal charge; excluding that item, expenses were largely unchanged from the prior quarter. Capital improved with CET1 up 28 basis points to 11.09%, and total risk-based capital was 15.01% at quarter end. Loans held for investment ended just under $5 billion, up about $81 million or 6.6% annualized, while deposits were up $125 million year to date, or 4.8% annualized. For 2026, management expects period-end loan and deposit balances to grow mid-single digits, non-FTE net interest income to grow in the low teens year over year, fee income in the mid-$40 million range, expenses in the low to mid-$160 million range excluding the legal charge, and the FTE margin in the 4.30% to 4.35% range in the second half.

Thomas Prame framed the quarter as evidence of the durability of Horizon’s community banking model, emphasizing disciplined growth, stable margins, strong fees, and excellent credit. He said the bank is generating peer-leading capital and sees a constructive setup for the second half of 2026, with continued focus on shareholder value. He also highlighted that the legal accrual was a one-time item tied to an appeal process and that the franchise remains optimistic about organic growth and selective M&A as an accelerant, not a necessity.

John Stewart said the quarter benefited from margin expansion, favorable loan yield dynamics, and a lower average cash balance, with the NIM rising to 4.37% and loan yields up 9 basis points versus a 3 basis point increase in total deposit costs. He noted interest-bearing deposit costs were 1.94% in Q2 and 1.95% in June and July, while new loan production averaged about 6.75% and cash flow reinvestment on securities was in the high 4s. He also said expenses were $43.8 million including the $3.1 million legal charge, CET1 rose to 11.09%, and the bank expects to keep accreting capital, with 1.5 million shares remaining under the prior buyback authorization.

Analysts focused on the margin outlook, deposit pricing, loan growth drivers, capital deployment, and M&A. Management said the move from 4.37% in Q2 to a 4.30% to 4.35% second-half range is mainly a cash-mix issue, not a sign that funding costs are structurally worsening, and that deposit costs may rise only modestly. On growth, they pointed to continued C&I expansion, disciplined pricing, and relationship banking; on capital, they said there is no published target ratio, the bank is not overcapitalized at just over 11% CET1, and buybacks, organic growth, and opportunistic M&A remain under consideration but will be handled conservatively. Analysts also asked about elevated CRE payoffs and management said most were due to customers completing business plans, with some selective pricing-related runoff.