📊 HBNC Key Takeaways
Is Horizon Bancorp Inc. /In/ (HBNC) a Good Investment?
Horizon Bancorp exhibits severe operational deterioration masked by headline revenue growth of 58.1%. Diluted EPS collapsed 505% YoY while net income stagnated at 0% growth, indicating fundamental profitability problems. Critical red flags include sub-1.0x interest coverage (0.8x), abysmal returns (ROE 3.7%, ROA 0.4%), and inability to service debt from operating income.
Revenue jumped, but profitability collapsed with deeply negative operating and net margins, negative ROE/ROA, and weak interest coverage—pointing to elevated credit costs and/or impairments and funding pressure. While capitalization appears reasonable and operating cash flow is positive, earnings quality must normalize before fundamentals are attractive.
Horizon Bancorp Inc. /In/ Key Strengths (HBNC)
- Strong top-line revenue growth of 58.1% YoY
- Conservative leverage with Debt/Equity ratio of 0.36x
- Positive free cash flow of $20.7M with 23.9% FCF margin
- Strong YoY revenue growth (+58%)
- Adequate capitalization (equity ~11% of assets) with modest long-term debt
- Positive operating cash flow and solid FCF margin
HBNC Stock Risks: Horizon Bancorp Inc. /In/ Investment Risks
- Interest coverage ratio of 0.8x indicates inability to cover debt service from operating income
- Diluted EPS declined 505% YoY despite revenue surge, signaling severe earnings deterioration or massive dilution
- Return metrics critically weak (ROE 3.7%, ROA 0.4%) suggesting asset quality issues or operational dysfunction in banking model
- Persistently negative profitability from credit losses/impairments
- Net interest margin pressure from rising deposit/funding costs
- Capital erosion if losses continue and credit quality deteriorates
Key Metrics to Watch
- Interest coverage ratio - must return above 1.5x for viability
- Net income growth trajectory - must align with revenue growth
- Loan loss provisions and nonperforming asset ratios for banking quality assessment
- Provision for credit losses and net charge-offs
- Net interest margin (NIM) and deposit cost/beta
Horizon Bancorp Inc. /In/ (HBNC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HBNC Profit Margin, ROE & Profitability Analysis
HBNC vs Finance Sector: How Horizon Bancorp Inc. /In/ Compares
How Horizon Bancorp Inc. /In/ compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Horizon Bancorp Inc. /In/ Stock Overvalued? HBNC Valuation Analysis 2026
Based on fundamental analysis, Horizon Bancorp Inc. /In/ has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Horizon Bancorp Inc. /In/ Balance Sheet: HBNC Debt, Cash & Liquidity
HBNC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Horizon Bancorp Inc. /In/'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.64 reflects profitable operations.
HBNC Revenue Growth, EPS Growth & YoY Performance
Horizon Bancorp Inc. /In/ Dividends, Buybacks & Capital Allocation
HBNC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Horizon Bancorp Inc. /In/ (CIK: 0000706129)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HBNC
What is the AI rating for HBNC?
Horizon Bancorp Inc. /In/ (HBNC) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HBNC's key strengths?
Claude: Strong top-line revenue growth of 58.1% YoY. Conservative leverage with Debt/Equity ratio of 0.36x. ChatGPT: Strong YoY revenue growth (+58%). Adequate capitalization (equity ~11% of assets) with modest long-term debt.
What are the risks of investing in HBNC?
Claude: Interest coverage ratio of 0.8x indicates inability to cover debt service from operating income. Diluted EPS declined 505% YoY despite revenue surge, signaling severe earnings deterioration or massive dilution. ChatGPT: Persistently negative profitability from credit losses/impairments. Net interest margin pressure from rising deposit/funding costs.
What is HBNC's revenue and growth?
Horizon Bancorp Inc. /In/ reported revenue of $86.7M.
Does HBNC pay dividends?
Horizon Bancorp Inc. /In/ pays dividends, with $8.2M distributed to shareholders in the trailing twelve months.
Where can I find HBNC SEC filings?
Official SEC filings for Horizon Bancorp Inc. /In/ (CIK: 0000706129) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HBNC's EPS?
Horizon Bancorp Inc. /In/ has a diluted EPS of $0.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is HBNC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Horizon Bancorp Inc. /In/ has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is HBNC stock overvalued or undervalued?
Valuation metrics for HBNC: ROE of 3.7% (sector avg: 12%), net margin of 30.2% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is HBNC's AI grade for 2026?
Our dual AI analysis gives Horizon Bancorp Inc. /In/ a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HBNC's free cash flow?
Horizon Bancorp Inc. /In/'s operating cash flow is $20.8M, with capital expenditures of $56.0K. FCF margin is 23.9%.
How does HBNC compare to other Finance stocks?
Vs Finance sector averages: Net margin 30.2% (avg: 25%), ROE 3.7% (avg: 12%), current ratio N/A (avg: 1.2).