📊 HBNC Key Takeaways
Is Horizon Bancorp Inc. /In/ (HBNC) a Good Investment?
Horizon Bancorp faces a severe profitability crisis with -41.5% net margin and -$201.2M operating loss despite 58% revenue growth, indicating fundamental operational or asset quality deterioration. Catastrophic EPS deterioration (-505% YoY) and negative equity returns (-21.9% ROE) are destroying shareholder value, though positive cash flow and moderate leverage (0.36x) provide temporary financial runway.
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.
Why Buy Horizon Bancorp Inc. /In/ Stock? HBNC Key Strengths
- Positive operating cash flow of $79.2M and free cash flow of $74.3M despite net losses
- Moderate leverage at 0.36x Debt/Equity provides financial flexibility and borrowing capacity
- Substantial asset base of $6.4B with adequate liquidity of $139.5M in cash equivalents
- 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
- Severe profitability collapse with -41.5% net margin and -$150.5M net loss eroding equity base
- Catastrophic EPS deterioration of -505% YoY signals fundamental business breakdown requiring urgent intervention
- Negative interest coverage ratio (-4.8x) indicates inability to service debt from operations; non-cash losses suggest asset quality deterioration typical of banking stress
- Persistent operating losses will rapidly consume equity capital and threaten financial stability if not reversed
- 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
- Operating margin trajectory and net income path to profitability
- Non-performing loan ratios and loan loss provision trends
- Deposit base stability and funding costs
- Equity capital ratio and minimum regulatory capital maintenance
- Return to positive operating income and normalized margins
- 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 20.5% 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 Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HBNC's key strengths?
Claude: Positive operating cash flow of $79.2M and free cash flow of $74.3M despite net losses. Moderate leverage at 0.36x Debt/Equity provides financial flexibility and borrowing capacity. 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: Severe profitability collapse with -41.5% net margin and -$150.5M net loss eroding equity base. Catastrophic EPS deterioration of -505% YoY signals fundamental business breakdown requiring urgent intervention. 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 $362.8M.
Does HBNC pay dividends?
Horizon Bancorp Inc. /In/ pays dividends, with $29.5M 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 $-3.24.
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 rating reflects both perspectives for balanced insights.
Is HBNC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Horizon Bancorp Inc. /In/ has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HBNC stock overvalued or undervalued?
Valuation metrics for HBNC: ROE of -21.9% (sector avg: 12%), net margin of -41.5% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy HBNC stock in 2026?
Our dual AI analysis gives Horizon Bancorp Inc. /In/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HBNC's free cash flow?
Horizon Bancorp Inc. /In/'s operating cash flow is $79.2M, with capital expenditures of $5.0M. FCF margin is 20.5%.
How does HBNC compare to other Finance stocks?
Vs Finance sector averages: Net margin -41.5% (avg: 25%), ROE -21.9% (avg: 12%), current ratio N/A (avg: 1.2).