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Horizon Bancorp [In] (HBNC)
NASDAQ:HBNC
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Horizon Bancorp
(NASDAQ:HBNC)
66Neutral
Horizon Bancorp (HBNC) vs. S&P 500 (SPY)
Market Cap
$572.63M
Dividend Yield4.92%
Average Volume (3M)199.28K
Price to Earnings (P/E)16.2
Beta (1Y)1.25
Revenue Growth10.94%
EPS Growth26.35%
CountryUS
Employees841
SectorFinancial
Sector Strength86
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.80
Shares Outstanding44,014,507
10 Day Avg. Volume222,767
30 Day Avg. Volume199,278
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)N/A
Price to Sales (P/S)3.56
Price to Cash Flow (P/CF)-3.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.00Price Target Upside47.06% Upside
Rating ConsensusHold
Number of Analyst Covering4
Horizon Bancorp Business Overview & Revenue Model
Company DescriptionHorizon Bancorp (HBNC) is a diversified financial services company headquartered in Michigan City, Indiana. The company operates primarily through its subsidiary, Horizon Bank, which offers a broad range of banking services across the Midwest. Horizon Bancorp provides personal and commercial banking services, including loans, deposits, wealth management, and trust services. The company serves a diverse clientele, ranging from individuals and small businesses to larger commercial entities.
How the Company Makes MoneyHorizon Bancorp makes money primarily through interest income generated from its lending activities. The company extends various types of loans, such as commercial, residential mortgage, and consumer loans, earning interest over the term of these loans. Additionally, Horizon Bancorp generates revenue through non-interest income streams, including fees for services such as wealth management, trust services, and transaction processing. Deposit accounts also contribute to revenue by providing a low-cost source of funds for lending. The company's earnings are influenced by factors such as interest rate fluctuations, economic conditions, and its ability to manage credit risk effectively.
Horizon Bancorp Financial Statement Overview
Summary
Horizon Bancorp demonstrates a solid financial position with strong gross margins and a solid balance sheet marked by zero debt in the latest period. However, revenue and free cash flow have decreased, which may impact future profitability. The company's focus on cash management and low leverage are key strengths, providing a stable financial foundation in the competitive banking industry.Income Statement
Horizon Bancorp shows a mixed performance with a strong gross profit margin of 118.15% for TTM, indicating efficient cost management. However, the net profit margin is modest at 14.19%, with revenue growth declining by 22.56% compared to the previous year. EBIT and EBITDA margins are 21.47% and 22.52% respectively, reflecting moderate operational efficiency.68
Positive
Balance Sheet
The balance sheet is robust with no total debt reported in the TTM period, significantly improving from the previous year's debt levels. The debt-to-equity ratio is 0, highlighting low financial leverage. Return on Equity (ROE) is a moderate 4.64%, with an equity ratio of 10.50%, indicating a stable capital structure but with room for improvement in return generation.75
Positive
Cash Flow
Free Cash Flow shows a decline in growth rate by 36.51%, while the operating cash flow to net income ratio stands at 1.55, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.45, suggesting efficient cash management.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 356.48M | 185.28M | 241.56M | 228.26M | 219.93M | Gross Profit |
| 356.48M | 185.28M | 241.56M | 228.26M | 219.93M | EBIT |
| 353.75M | 66.91M | 142.10M | 102.45M | 78.37M | EBITDA |
| 0.00 | 0.00 | 118.68M | 116.32M | 90.70M | Net Income Common Stockholders |
| 35.43M | 27.98M | 93.41M | 87.09M | 68.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 325.98M | 526.51M | 1.12B | 1.76B | 1.39B | Total Assets |
| 7.80B | 7.94B | 7.87B | 7.36B | 5.89B | Total Debt |
| 1.23B | 899.82M | 1.26B | 771.82M | 590.15M | Net Debt |
| 1.14B | 371.10M | 1.13B | 173.53M | 331.48M | Total Liabilities |
| 7.04B | 7.22B | 7.20B | 6.63B | 5.19B | Stockholders Equity |
| 763.58M | 718.81M | 677.38M | 723.21M | 692.22M |
| Cash Flow | Free Cash Flow | |||
| 6.37M | 81.16M | 87.95M | 103.91M | 72.90M | Operating Cash Flow |
| 6.37M | 88.94M | 94.38M | 105.35M | 78.77M | Investing Cash Flow |
| -52.78M | 329.52M | -1.02B | -363.08M | -492.32M | Financing Cash Flow |
| -186.68M | -15.44M | 455.55M | 582.30M | 564.44M |
Horizon Bancorp Technical Analysis
Negative
12.92
Price Trends
15.70
Negative
16.17
Negative
15.46
Negative
Market Momentum
-0.32
Positive
37.42
Neutral
19.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBNC, the sentiment is Negative. The current price of 12.92 is below the 20-day moving average (MA) of 14.58, below the 50-day MA of 15.70, and below the 200-day MA of 15.46, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 19.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HBNC.
Horizon Bancorp Risk Analysis
Horizon Bancorp disclosed 41 risk factors in its most recent earnings report. Horizon Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Horizon Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $568.59M | 10.69 | 11.22% | 2.73% | 3.47% | -1.52% | |
71 Outperform | $592.39M | 10.55 | 10.32% | 1.44% | 11.01% | 7.84% | |
66 Neutral | $572.63M | 16.18 | 4.78% | 4.92% | 10.94% | 26.35% | |
66 Neutral | $604.44M | 9.11 | 15.55% | 3.40% | 10.58% | 13.51% | |
65 Neutral | $619.45M | 10.16 | 10.55% | 3.16% | 8.68% | -6.27% | |
64 Neutral | $13.21B | 9.26 | 9.39% | 4.87% | 16.14% | -8.87% | |
59 Neutral | $585.83M | ― | -3.76% | 4.04% | 9.77% | -147.04% |
* Financial Sector Average
Performance Comparison
HBNC
Horizon Bancorp
12.92
2.02
18.53%
CCBG
Capital City Bank
33.13
7.64
29.97%
EGBN
Eagle Bancorp
18.97
-1.21
-6.00%
GSBC
Great Southern Bancorp
50.56
1.39
2.83%
HTB
Hometrust Bancshares
32.03
8.20
34.41%
IBCP
Independent Bank
28.52
6.10
27.21%
Horizon Bancorp Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -16.75% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong loan growth, improved net interest margin, and positive credit metrics, driven by strategic initiatives and effective expense management. Despite these achievements, the call noted challenges such as decreased consumer loan balances, a decline in noninterest income, and higher-than-expected expenses. The sentiment reflects a positive outlook for 2025 with continued focus on strategic growth and financial optimization.Highlights
Strong Loan Growth
Total loans held for investment, excluding mortgage warehouse, grew by $123 million, representing 10% annualized growth. The commercial lending segment experienced a 22% annualized growth in net loans.
Improved Net Interest Margin
Net interest margin increased by 31 basis points to 2.97%, driven by strategic redeployment of cash proceeds and reduction of higher-cost deposit balances.
Positive Credit Metrics
Commercial credit quality is strong with key metrics at or below peer performance, including past due loans greater than 30 days at 10 basis points and a nonperforming loan ratio declining to 19 basis points.
Strategic Initiatives and Expense Management
Restructuring initiatives completed in the quarter are expected to lead to a more efficient cost structure in 2025, with key strategic initiatives yielding positive financial positioning.
Sale of Mortgage Warehouse Division
The mortgage warehouse division was sold for a gain, effective January 17, which will be recognized in Q1 results.
Lowlights
Decrease in Consumer Loan Balances
Consumer loan balances decreased by $42.1 million during the quarter, primarily due to the continued wind-down in indirect auto lending.
Noninterest Income Decline
Noninterest income declined by over $1 million linked quarter, primarily due to the seasonality of mortgage-related income.
Higher-than-Expected Expenses
Q4 expenses were elevated due to higher medical benefits expense, higher performance-based compensation accruals, and other accruals totaling approximately $2 million to $2.5 million.
Company Guidance
During the Horizon Bancorp, Inc. earnings call for Q4 2024, the company provided guidance emphasizing strong financial performance metrics and strategic initiatives. The quarter witnessed exceptional loan growth with a 10% annualized increase, excluding warehouse balances, and a significant rise in net interest margin for the fifth consecutive quarter. The company reported a net loan growth of $408 million for the year, with commercial loans growing by $164 million in the quarter, marking a 22% annualized increase. Deposit trends were stable, with a strategic reduction in high-cost CDs to enhance profitability. The net interest margin improved by 31 basis points to 2.97%, driven by redeploying cash from securities sales and reducing high-cost deposit balances. The company's allowance for credit losses stood at $52 million, with credit quality remaining strong. For 2025, Horizon anticipates mid-single-digit growth in loans held for investment and a net interest income growth in the mid-teens, with expenses projected to be flat to up slightly compared to 2024. The company also highlighted its focus on strategic actions, including a successful securities repositioning and the sale of its mortgage warehouse division, contributing to positive momentum for the coming year.Horizon Bancorp Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Horizon Bancorp Announces Leadership Changes in 2025
Positive
Feb 26, 2025
On February 26, 2025, Horizon Bancorp, Inc. announced the retirement of Craig Dwight as Chairman of the Board, effective May 1, 2025, and the appointment of Eric Blackhurst as the new Independent Chairperson. Blackhurst, who has been a director for over seven years, brings extensive experience from his career at The Dow Chemical Company. Additionally, Horizon welcomed Larry Magnesen to the Board of Directors of Horizon Bank, bringing over 20 years of experience in financial services marketing. These changes are expected to enhance Horizon’s strategic objectives and strengthen its leadership structure.
Business Operations and StrategyFinancial Disclosures
Horizon Bancorp Reports Q4 Growth Amid Strategic Shifts
Neutral
Jan 22, 2025
Horizon Bancorp, Inc. reported its fourth-quarter 2024 financial results, highlighting a more profitable core business and the completion of key strategic initiatives. Despite a net loss of $10.9 million due to a $39.1 million pre-tax loss on investment securities, the company achieved a 22.4% annualized growth rate in commercial loans and improved its net interest margin by 31 basis points. The company also completed the sale of its mortgage warehouse line of business on January 17, 2025, which is expected to be neutral to operating income but generate a gain in the first quarter of 2025. These measures, alongside restructuring efforts, aim to enhance efficiency and shareholder returns in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.