Horizon Bancorp slides after $90 million share sale

Horizon Bancorp

21/08/2025 15:20

** Commercial bank Horizon Bancorp's HBNC.O shares slide as much as 7.6% to $14.84 — their lowest since June

** HBNC announces pricing of public offering of 6.2 million shares at $14.50 apiece for gross proceeds of roughly $90 million

** Offering priced at 9.7% discount to stock's last close

** Proceeds will be used for general purposes, including potential bond portfolio rejig to boost profitability

** HBNC is considering selling $1.4 billion worth of legacy securities, which might result in an after-tax loss of $238 million

** Surprising initiative based on HBNC's securities portfolio commentary during Q2 conference call, Piper Sandler says

** Legacy shareholders will be disappointed by 36% book value dilution and lengthy earn-back period of more than 10 years, brokerage says

** "Current management didn't make this balance sheet sick, but that doesn't mean the medicine they've found tastes any better going down, particularly for existing shareholders," brokerage Hovde Group says

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com))