Horizon: 2 Key Takeaways for Long-Term Investors
Key Points
Horizon reported an annualized return on average assets above 1.7%.
Commercial and industrial loan balances expanded 12% year over year.
Total deposits grew at a 5.2% annualized rate year-to-date.
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On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Horizon (NASDAQ:HBNC) announced annualized returns on average assets exceeding 1.7% alongside mid-single-digit loan and deposit growth. Long-term investors gain from a disciplined community bank expanding commercial market share while keeping deposit costs low.
Two things management said stand out.
1. Commercial and Industrial Expansion Drives Portfolio Growth
Horizon is growing its commercial and industrial lending, which provides funding for daily business operations, by capturing accounts from disrupted regional competitors.
We have been very fortunate to expand some of our existing C&I customers' business as well as some new opportunities as we're growing into that space. There's a little bit of disruption in the market with a couple of competitors...
-- Lynn Kerber, Executive Vice President and Chief Commercial Banking Officer
2. Capital Accumulation Opens Strategic Allocation Options
Robust earnings raised Horizon's Common Equity Tier 1 capital ratio, a key metric of core financial safety, above 11.5%, giving leadership capital to fund organic growth or share buybacks.
During the quarter, our CET1 ratio increased by another 44 basis points to 11.53%. We are highly confident in the strength of our capital position and our ability to sustain attractive levels of profitability.
-- John Stewart, Executive Vice President and Chief Financial Officer
Looking Ahead
Lending activity accelerates across core Midwest markets alongside fee growth in treasury management, which handles business cash flows. Horizon leverages strong credit quality and local core deposits while managing interest rate risk.
Our strategy of efficient balance sheet expansion, continued development of our fee income businesses and conservative approach to credit has delivered meaningful shareholder value...
-- Thomas Prame, Chief Executive Officer and President
Disciplined execution positions the institution to deliver durable returns.
We believe the consistency of this profitable growth strategy, combined with peer-leading capital generation will produce a level of success that will warrant your continued investment in Horizon.
-- Thomas Prame, Chief Executive Officer and President
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