Horizon Bancorp Q2 profit misses estimates on legal charge

Horizon Bancorp

22/07/2026 21:21

    

    Overview
  
U.S. regional bank's Q2 adjusted EPS and net income missed analyst expectations
Net interest income rose 14.7% yr/yr, with net interest margin expanding to 4.37%
Q2 results included a $3.1 mln pre-tax legal charge, impacting profitability

    

    Outlook
  
Horizon expects mid-single digit organic growth in loans and deposits going forward
Company anticipates continued advancement in fee income and disciplined expense management
Horizon says its low-volatility, profitability-first growth model will drive shareholder value over time

    

    Result Drivers
  
NET INTEREST MARGIN - Higher net interest margin, driven by disciplined loan and deposit pricing, favorable cash reinvestment, and commercial loan growth, supported net interest income
NON-INTEREST INCOME - Higher gains on sale of mortgage loans and increased interchange fees contributed to growth in non-interest income
LEGAL CHARGE - Q2 expenses rose due to a $3.1 mln legal charge, impacting profitability

    
Company press release: ID:nGNX6JFGSt

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
Miss
$0.49
$0.51 (5 Analysts)
Q2 Net Income
Miss
$24.91 mln
$26.09 mln (3 Analysts)
Q2 Net Interest Income
 
$63.49 mln
 
Q2 Net Interest Margin
 
4.30%
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "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 $21.00, about 2.9% above its July 21 closing price of $20.41
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

    

    Reuters Recommended Reads
  
July 21 - United Community Banks Q2 adjusted EPS misses estimates 
July 22 - Norwood Financial posts record Q2 net income, net interest income 
July 21 - Webster Financial Q2 revenue beats estimates on loan, deposit growth

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)