The EPS miss was driven by a disclosed $3.1M legal charge, while underlying operations (NIM expansion, loan growth) are solid. Traders should watch for resolution of the legal appeal and monitor whether normalized earnings resume in Q3. The next 10-Q will provide updated guidance and further clarity on credit trends.
Price Chart
Executive Summary
Horizon Bancorp reported Q2 2026 EPS of $0.49, missing the $0.51 consensus by 3.9%, primarily due to a $3.1M pre-tax legal charge. Net interest income rose 14.7% YoY to $63.5M and net interest margin expanded to 4.37%, reflecting strong loan growth and disciplined pricing. The modest miss is likely a one-time event, and core profitability metrics remain strong.
Key Financial Metrics
Key Facts
- EPS of $0.49 missed consensus of $0.51 (-3.9%)
- Net interest income of $63.5M, up 14.7% YoY
- Net interest margin (FTE) expanded to 4.37% from 3.23% YoY
- Pre-tax legal charge of $3.1M ($0.05 per share) negatively impacted results
- Total loans HFI increased 6.6% annualized from linked quarter; commercial loans up 7.4% annualized
- ROAA of 1.54% and ROATCE of 18.05%, despite the legal charge
- Credit quality remains strong: annualized net charge-offs 0.05% of average loans
- Total deposits decreased $22.1M QoQ; non-interest bearing deposits declined
Financial Impact
EPS miss of $0.02 vs consensus ($0.49 vs $0.51); legal charge reduced EPS by $0.05; net interest income grew 14.7% YoY from $55.4M to $63.5M
Risk Factors
- Legal charge may persist or expand if the appeal process extends
- Interest rate changes could compress NIM if deposit costs rise faster than loan yields
- Commercial real estate exposure could be sensitive to economic slowdown
- Deposit competition may pressure funding costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3331697 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $19.99 $20.37 | ▲ +1.90% | ▲ +2.42% | $20.37 (+1.90%) |
Oct 21, 2026 5d ago | Press Release | $19.99 $20.37 | ▲ +1.90% | ▲ +2.42% | $20.37 (+1.90%) |
Oct 2, 2026 24d ago | Press Release | $19.48 $19.24 | ▼ −1.23% | ▼ −1.91% | $20.37 (+4.57%) |
Sep 16, 2026 5w ago | 8-K | $19.52 $19.48 | ▼ −0.20% | ▼ −0.09% | $20.37 (+4.35%) |
Jul 22, 2026 13w ago | Press Release | $20.05 $20.06 | ▲ +0.05% | ▼ −0.05% | $20.37 (+1.60%) |
Jun 30, 2026 16w ago | 8-K | $20.48 $19.78 | ▲ +3.42% | ▲ +3.29% | $20.37 (+0.54%) |
Apr 22, 2026 26w ago | 8-K | $17.80 $17.83 | ▼ −0.17% | ▲ +0.62% | $20.37 (−14.44%) |
Apr 22, 2026 26w ago | Press Release | $17.80 $17.83 | ▼ −0.17% | ▲ +0.62% | $20.37 (−14.44%) |
Apr 1, 2026 29w ago | 8-K | $16.76 $16.88 | ▲ +0.72% | ▲ +0.24% | $20.37 (+21.54%) |
Apr 1, 2026 29w ago | Press Release | $16.76 | awaiting T+1 | — | $20.37 (+21.54%) |
US Market Status
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