Horizon Bancorp launches public offering of common stock

MICHIGAN CITY, Ind. - Horizon Bancorp, Inc. (NASDAQ:HBNC), a $708 million market cap regional bank, announced Wednesday it has launched an underwritten public offering of its common stock, with plans to grant underwriters a 30-day option to purchase up to an additional 15% of shares sold in the offering. According to InvestingPro analysis, the stock appears undervalued based on multiple metrics, with analysts setting price targets between $18-19.

The $7.7 billion-asset bank holding company intends to use the net proceeds for general corporate purposes, including potential balance sheet repositioning, according to a press release statement. The bank has demonstrated strong financial health, maintaining dividend payments for 39 consecutive years and generating $211.6 million in revenue over the last twelve months.

Keefe, Bruyette & Woods, Inc., A Stifel Company and Performance Trust Capital Partners, LLC are serving as joint book-running managers for the offering.

The offering is being conducted pursuant to a shelf registration statement on Form S-3 that was previously filed with and declared effective by the Securities and Exchange Commission. A preliminary prospectus supplement has been filed, with a final prospectus supplement and accompanying prospectus to follow.

Horizon Bancorp operates through its subsidiary Horizon Bank, which serves customers across Indiana and Michigan markets. The bank provides retail offerings including residential and consumer lending, personal banking, and wealth management solutions. It also offers business banking and treasury management services, with commercial lending representing over half of its total loan portfolio. Five analysts have recently revised their earnings estimates upward for the upcoming period, and net income is expected to grow this year, according to InvestingPro data.

The company noted that the announcement does not constitute an offer to sell or solicitation of an offer to buy securities, and no sale will occur in any jurisdiction where such offer or sale would be unlawful prior to registration or qualification under securities laws.

In other recent news, Horizon Bancorp reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.47, which exceeded the forecasted $0.44. Despite this earnings surprise, the company experienced a slight revenue shortfall, with actual revenue coming in at $66.27 million compared to the expected $66.41 million. Keefe, Bruyette & Woods responded by raising its price target for Horizon Bancorp to $18.00 from $17.00, maintaining a Market Perform rating. The firm noted Horizon’s stronger-than-expected earnings, driven by robust pre-provision net revenue and a lower tax rate that countered a higher provision expense. Additionally, Horizon Bank announced the appointment of John Hatfield as Senior Vice President, Director of Marketing. Hatfield, with over 20 years of experience in strategic marketing, will lead the strategic direction of Horizon’s marketing efforts. These developments highlight recent shifts and strategic decisions within the company.

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