Horizon Bancorp Q2 net income falls

Overview

• Horizon Bancorp Q2 net income falls to $20.6 mln from $23.9 mln in Q1

• Net interest income rises 5.9% qtr/qtr, driven by loan growth

• Company maintains strong credit quality with low net charge-offs

Outlook

• Company highlights disciplined approach to efficient balance sheet and capital deployment

• Company aims to continue creating shareholder value throughout 2025

Result Drivers

• LOAN GROWTH - Strong commercial loan growth of $117.2 mln, partially funded by runoff of lower yielding auto loans

• NET INTEREST MARGIN - Seventh consecutive quarter of net interest margin expansion to 3.23%, driven by higher-yielding loans and strategic pricing

• CREDIT QUALITY - Low net charge-offs and decrease in non-performing assets, reflecting strong credit management

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Horizon Bancorp Inc is $18.00, about 11.6% above its July 22 closing price of $15.92

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXb6KB1z