From The Motley Fool · Motley Fool Transcribing · · 2m
Horizon Bancorp Q3 2:26 Earnings Results
Horizon Bancorp reports strong Q3 2026 earnings with $28.7m net income and 20.03% return on tangible equity.
In brief
Horizon Bancorp reports strong Q3 2026 earnings with $28.7m net income and 20.03% return on tangible equity. Horizon Bancorp achieved $28.7m net income and 20.03% return on tangible equity in Q3 2026. Originally reported by The Motley Fool.
Q3 2026 Results
Horizon Bancorp reported $28.7 million net income, or $0.56 per diluted share, up from $24.9 million in Q2 2026.
Return on Assets
Return on average assets reached 1.73% annually, reflecting top-tier performance for the quarter.
Tangible Equity Return
Return on average tangible common equity hit 20.03% for the quarter, meeting long-term targets.
Net Interest Margin
Net interest margin stayed flat at 4.37% compared to Q2 2026 due to disciplined pricing and cash redeployment.
Loan Growth
Loans held for investment increased $46.9 million or 3.7% annually from Q2 2026 to $5.0 billion.
Deposit Growth
Total deposits grew 6% annually to $5.5 billion, concentrated in relationship-based core portfolios.
Commercial Loans
Commercial and industrial loans reached $1.11 billion, up 12% year-over-year and now 31% of commercial portfolio.
Commercial Real Estate
Commercial real estate loans declined $9.9 million due to selective strategy and elevated property payoffs in July and August.
Mortgage Activity
Mortgage gain on sale grew 52% year-over-year to $2.1 million, supported by increased volumes and wider margins.
Non-Interest Income
Non-interest income reached $11.9 million, with mortgage and fiduciary activities up 52% and 8% year-over-year.
Expense Reduction
Non-interest expenses declined to $41.5 million from $43.8 million in Q2 2026 after non-recurrence of a $3.1 million legal charge.
Capital Ratio
Common equity tier 1 ratio increased to 11.53%, a 44 basis point rise from Q2 2026.
Net Charge-offs
Net charge-offs totaled $1.2 million, or 10 basis points annualized, within historical expectations.
Substandard Loans
Substandard loans decreased to $60.3 million, or 1.2% of total loans, from 1.3% in Q2 2026.
Q4 Projections
Projected net interest income for Q4 2026 ranges from $66 million to $67 million, incorporating a 25 basis point Fed rate hike in early December.
Annual Expense Outlook
Annual expenses are expected to stay in the low to mid-$160 million range, excluding the Q2 legal charge.
What matters most
Horizon Bancorp achieved $28.7m net income and 20.03% return on tangible equity in Q3 2026.
