Key Points – Horizon Bancorp posted solid second-quarter results with a net interest margin of 4.37%, stronger fee income, and stable credit quality.
Management said the quarter was hurt by a one-time $3.1 million legal expense accrual, but results were otherwise in line with full-year expectations. – Commercial lending remained the main growth engine, with loans held for investment up about $81 million and commercial balances rising $64 million
Growth was led by C&I lending across several markets, while commercial real estate was roughly flat due to elevated payoffs rather than weak demand. – Management raised its 2026 outlook modestly, expecting mid-single-digit loan and deposit growth, full-year fee income in the mid-$40 million range, and second-half net interest margin of 4.30% to 4.35%. The company also said capital remains strong, with CET1 at 11.09%, and it will keep evaluating buybacks and acquisitions. Horizon Bancorp (IN) (NASDAQ:HBNC) management said the bank’s second-quarter 2026 results reflected continued strength in net interest margin, fee income, commercial lending and credit quality, while also noting a one-time legal expense accrual tied to an unfavorable litigation decision.
President and Chief Executive Officer Thomas Prame said the quarter “continued to show impressive results,” citing a net interest margin in the mid-4.30% range, strong fee income performance and favorable credit trends. He said the company ended the quarter with a common equity Tier 1 capital ratio of 11.09% and total risk-based capital of 15.01%. Prame said Horizon’s first-half performance reflected a “practical approach” to growth, with deposits up approximately 5% annualized year to date and lending growth of approximately 4% annualized.