Horizon Bancorp, Inc. announced significant progress on the repositioning of its balance sheet to enhance financial performance and shareholder value.
Key actions included successful equity and debt raises, strategic pre-payments, and redeployment of proceeds into investment securities.
The company also signed agreements to sell a portion of its assets and reduce exposure to non-core transactional deposit balances.
Successful Equity and Debt Raises
Closed underwritten public offering of 7,138,050 shares of common stock and $100 million in subordinated notes.
Strategic Pre-payments and Securities Restructuring
Pre-paid $700 million of FHLB puttable advances, sold assets with realized pre-tax loss of $299.1 million, and redeployed $600 million into investment securities.
Asset Sales and Deposit Balance Reduction
Signed agreements to sell $190 million of auto loans and reduce over $125 million of non-core transactional deposit balances.
- Efficient execution of restructuring initiatives enhances shareholder value and financial performance.
- Actions align with restructuring plan, mitigating market risks and creating top-tier performance for shareholders.
- Company's strategic focus on reducing exposure to non-core assets and deposits improves financial flexibility and optionality for 2026.
Horizon Bancorp, Inc. has demonstrated strong strategic execution in repositioning its balance sheet, laying a foundation for enhanced shareholder value and financial performance. The company's proactive measures align with its restructuring plan, positioning it for top-tier performance in the coming year.