Liquidity has been utilized to facilitate a major balance sheet restructuring, evidenced by the liquidation of $1.5 billion in investment securities during 2025Q3 to address duration mismatches.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 69.62M | 45.66M | 6.37M | 88.94M | 94.38M | 106.35M | 78.77M | 174.37M | 72.29M | 49.06M | 25.55M | 35.23M | 17.66M | 46.97M | 26.35M | 22.35M | 24.88M | 14.71M | 19.61M | 17.98M | -1.01M | 11.22M | 14.32M | 12.97M | 3.97M | 3.81M | 1.93M | 17.28M | 4.72M | 3.9M | 9.11M |
| Operating CF Growth % | 37.36% | 616.99% | -92.84% | -5.77% | -11.26% | 35.02% | -54.83% | 141.23% | 47.33% | 92.05% | -27.48% | 99.43% | -62.39% | 78.26% | 17.87% | -10.15% | 69.09% | -25% | 9.09% | 1881.96% | -109% | -21.66% | 10.41% | 226.81% | - | 97.92% | -88.85% | 266.09% | 21.05% | -57.18% | 63.97% |
| Net Income | -148.26M | -177.4M | 35.43M | 27.98M | 93.41M | 87.09M | 68.5M | 66.54M | 53.12M | 33.12M | 23.91M | 20.55M | 18.1M | 19.88M | 19.54M | 12.8M | 10.46M | 9.14M | 8.97M | 8.14M | 7.48M | 7.09M | 6.93M | 6.53M | 5.5M | 4.13M | 3.78M | -354K | 1.28M | 1.72M | 3.82M |
| Depreciation & Amortization | 8.22M | 11.2M | 12.3M | 11.97M | 13.1M | 13.88M | 12.33M | 9.69M | 6.81M | 5.94M | 5.28M | 4.15M | 3.78M | 3.36M | 2.88M | 2.52M | 2.32M | 3.01M | 2.06M | 2.4M | 2.71M | 2.28M | 2.19M | 2.4M | 1.44M | 1.48M | 1.55M | 1.41M | 1.14M | 1.37M | 1.04M |
| Deferred Taxes | 0 | 0 | -17M | -3.32M | 2.18M | 2.31M | -9.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 108K | -113K | -713K | -485K | -225K | -78K | 174K | -458K | -525K | -703K | -808K | -157K | -98K | 392K | 0 | 0 |
| Other Non-Cash Items | 246.94M | 293.38M | -17.2M | 43.74M | 8.01M | -716K | 12.55M | 700K | 6.96M | 11.73M | 4.75M | 3.17M | 263K | 13.12M | 6.29M | 6.03M | 10.33M | 9.68M | 9.96M | 487K | -1.59M | 3.03M | -2.55M | 5.39M | -2.92M | -1.08M | -2.42M | 16.75M | 1.76M | 196K | 1.84M |
| Working Capital Changes | 15.11M | -82.68M | -11.75M | 4.98M | -24.79M | 1.97M | -6.44M | 97.23M | 5.14M | -2.04M | -8.71M | 7.08M | -4.68M | 10.56M | -2.39M | 920K | 1.89M | -6.44M | -928K | 7.18M | -9.54M | -1.36M | 8.2M | -828K | 646K | 105K | -827K | -428K | 158K | 613K | 2.4M |
| Cash from Investing | 1.82B | 1.03B | -52.78M | 329.52M | -1.02B | -344.85M | -478.46M | -94.14M | -303.76M | -278.92M | 222.31M | -124.19M | -149.05M | 49.8M | -60.38M | -142.17M | 27.82M | -51.68M | -74.58M | -46.43M | -65.67M | -73.74M | -192.03M | -33.67M | -111.17M | -70.43M | -2M | -118.24M | -47.85M | 19.67M | -21.01M |
| Purchase of Investments | -583.46M | -583.46M | -312K | -11.67M | -610.65M | -1.77B | -590.3M | -425.88M | -243.08M | -181.17M | -271.39M | -276.8M | -98.21M | -180.94M | -113.94M | -202.93M | -228.57M | -162.45M | -117.69M | -51.82M | -91.79M | -39.13M | -171.18M | -216.33M | -76.91M | -24.64M | -13.66M | -152.52M | -64.49M | -8.04M | -40.79M |
| Sale/Maturity of Investments | 2.37B | 1.51B | 381.5M | 548.89M | 142.08M | 318.26M | 356.43M | 256.81M | 131.68M | 98.96M | 300.43M | 128.88M | 131.38M | 123.42M | 132.17M | 168.18M | 215.81M | 127.55M | 51.07M | 62.57M | 125.81M | 61.22M | 103.23M | 105.59M | 37.07M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Net Investment Activity | 1.78B | 922.48M | 381.19M | 537.23M | -468.57M | -1.45B | -233.88M | -169.07M | -111.4M | -82.21M | 29.04M | -147.92M | 33.17M | -57.52M | 18.23M | -34.75M | -12.76M | -34.9M | -66.62M | 10.75M | 34.02M | 22.09M | -67.95M | -110.74M | -39.85M | -23.64M | -12.66M | -151.52M | -63.49M | -7.04M | -39.79M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 622.18M | 0 | 128.75M | 0 | 44.21M | 169.51M | 182.41M | 7.18M | 0 | 26.28M | 0 | 6.14M | 0 | 0 | 0 | 0 | -2.9M | 0 | 0 | 0 | 0 | 0 | 0 | -785K | 0 | 0 |
| Other Investing | 37.8M | 107.28M | -428.88M | -199.94M | -544.93M | 484.86M | -238.71M | -49.2M | -188.93M | -238.18M | 25.14M | -153.06M | -183.14M | 113.63M | -97.91M | -104.98M | 36.85M | -12.72M | -2.51M | -54.17M | -95.81M | -91.51M | -121.47M | 79.28M | -69.84M | -73.94M | 596K | -5.05M | 18.09M | 13.4M | 17.46M |
| Cash from Financing | -1.03B | -906.59M | -186.68M | -15.44M | 455.55M | 582.3M | 550.48M | -39.89M | 229.99M | 236.42M | -229.76M | 94.13M | 143.14M | -95.78M | 44.33M | 124.58M | -105.74M | 66.99M | 35.93M | 24.66M | 86.24M | 83.52M | 150.5M | 30.48M | 124.27M | 50.19M | 280K | 103.93M | 54.64M | -23.55M | 10.18M |
| Dividends Paid | -22.37M | -21.29M | -28.33M | -28.31M | -27.77M | -24.77M | -21.18M | -20.84M | -15.42M | -11.72M | -8.42M | -6.34M | -4.88M | -4.03M | -3.53M | -3.12M | -3.48M | -3.36M | -2.15M | -1.92M | -1.81M | -1.66M | -1.48M | -1.31M | -1.21M | -1.18M | -1.23M | -1.22M | -1.24M | -1.26M | -1.03M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -7.61M | -19.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -651K | 0 | 0 | 0 | 0 | 0 | -7.62M | -2.12M | -1.17M | -368K |
| Stock Issued | -391K | -4.14M | -1.37M | 0 | 0 | 0 | 1.23M | 1.71M | 622K | 1.6M | 572K | 4.3M | 165K | 195K | 226K | 63K | 197K | 164K | 35K | 135K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | -391K | -4.14M | -1.37M | 0 | 0 | -7.61M | -18.4M | 1.71M | 622K | 1.6M | 572K | 4.3M | 165K | 195K | 226K | 63K | 197K | 164K | 35K | 135K | 0 | -651K | 0 | 0 | 0 | 0 | 0 | -7.62M | -2.12M | -1.17M | -368K |
| Debt Issuance (Net) | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K |
| Other Financing | -391.8M | 15.25M | -106.21M | -195.94M | 60.18M | 446.49M | 619.92M | 50.28M | 258.37M | -13.36M | 46.59M | 46.75M | 69.78M | -2.63M | 73.04M | 24.38M | -64.23M | 110.56M | -52.49M | -20.24M | 58.88M | 126.21M | 66.05M | 56.91M | 81.66M | 33.25M | 22.68M | 0 | 0 | 500K | 20.1M |
| Net Change in Cash | -30.21M | 164.82M | -233.08M | 403.01M | -470M | 343.8M | 150.88M | 40.34M | -1.49M | 6.56M | 18.1M | 5.17M | 11.76M | 986K | 10.29M | 4.76M | -53.02M | 30.02M | -19.03M | -3.78M | 19.56M | 21M | -27.21M | 9.77M | 17.06M | -16.42M | 207K | 2.98M | 11.51M | 18K | -1.73M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 0 | 293.43M | 526.51M | 123.5M | 593.51M | 249.71M | 98.83M | 58.49M | 59.98M | 53.42M | 35.32M | 43.48M | 31.72M | 30.73M | 20.45M | 15.68M | 68.7M | 38.68M | 55.03M | 58.81M | 39.25M | 18.25M | 45.46M | 35.69M | 18.63M | 35.05M | 34.84M | 31.87M | 20.36M | 20.34M | 22.07M |
| Cash at End | 0 | 458.25M | 293.43M | 526.51M | 123.5M | 593.51M | 249.71M | 98.83M | 58.49M | 59.98M | 53.42M | 48.65M | 43.48M | 31.72M | 30.73M | 20.45M | 15.68M | 68.7M | 36M | 55.03M | 58.81M | 39.25M | 18.25M | 45.46M | 35.69M | 18.63M | 35.05M | 34.84M | 31.87M | 20.36M | 20.34M |
| Interest Paid | 94.93M | 106.22M | 178.89M | 119.69M | 33.37M | 18.78M | 34.79M | 46.51M | 30.45M | 15.97M | 20.57M | 13.84M | 13.23M | 13.56M | 14.36M | 16.69M | 21.23M | 28.67M | 33.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 27.05M | 20.35M | 10.71M | 2.14M | 802K | 1.65M | 10.59M | 13.22M | 6.82M | 10.35M | 6.92M | 4.12M | 2.8M | 3.1M | 8.13M | 2.7M | 3.88M | 3.15M | 2.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 65.79M | 41.65M | 1.28M | 81.16M | 87.95M | 104.91M | 72.9M | 169.76M | 68.85M | 46.38M | 24.16M | 29.61M | 11.41M | 40.65M | 19.36M | 19.91M | 22.46M | 10.65M | 14.17M | 14.98M | -4.88M | 9.79M | 11.71M | 10.76M | 2.48M | 3.27M | 1.28M | 15.21M | 1.3M | 165K | 5.04M |
| FCF Growth % | 555.78% | 3143.38% | -98.42% | -7.72% | -16.17% | 43.91% | -57.06% | 146.56% | 48.47% | 91.91% | -18.38% | 159.49% | -71.93% | 109.93% | -2.75% | -11.36% | 110.99% | -24.89% | -5.38% | 406.63% | -149.87% | -16.35% | 8.85% | 333.97% | - | 156.19% | -91.61% | 1072.03% | 686.67% | -96.73% | 29.74% |
Securities portfolio valuation volatility
As reported in recent financial filings, Horizon Bancorp executed a significant balance sheet restructuring in 2025Q3, liquidating $1.5 billion in investment securities, which suggests a strategic effort to address duration mismatches despite the immediate impact on the bank's reported net income and overall liquidity profile.
The massive divestment of securities in 2025Q3, followed by a smaller $882.2 million sale in 2026Q1, indicates that management is actively pruning the investment portfolio to mitigate interest rate sensitivity. Investors should monitor whether these sales represent a permanent shift toward a more liquid, shorter-duration asset mix or merely a reactive measure to stabilize capital ratios following periods of intense margin compression.
Based on the bank's historical cash flow data, Horizon Bancorp has maintained a consistent quarterly dividend payout of approximately $7.1 million to $8.2 million, even during periods of significant net losses, which suggests a management preference for shareholder return stability over immediate capital preservation.
While the dividend appears stable, the payout ratio is highly distorted by the volatility in net income caused by securities-related accounting adjustments. Analysts should evaluate whether this commitment to dividends remains prudent if the core lending business does not show sustained improvement in pre-provision net revenue to offset the recent balance sheet restructuring costs.
According to the provided quarterly cash flow statements, Horizon Bancorp's ability to generate organic capital has been severely hampered by non-recurring losses, with net income swinging from a $222.0 million loss in 2025Q3 to a $26.2 million profit in 2026Q1, indicating highly inconsistent internal capital formation.
The bank's reliance on securities sales to manage its balance sheet suggests that organic capital generation is currently insufficient to support aggressive growth. Future capital adequacy will likely depend on the bank's ability to stabilize its net interest margin and reduce the frequency of one-time charges that have historically eroded the capital base.
Data from recent SEC filings reveals that Horizon Bancorp's operating cash flow is frequently decoupled from net income, as evidenced by the 2024Q4 period where the bank reported a $48.4 million cash outflow despite a $10.9 million net loss, highlighting the limitations of traditional cash flow analysis.
The divergence between net income and operating cash flow suggests that significant non-cash items and changes in working capital, likely related to mortgage warehouse activity, are masking the true underlying cash generation of the bank. Investors should look past the headline cash flow figures and focus on the stability of the core interest-earning asset base to gauge the bank's long-term viability.
Quick answers to the most common questions about buying HBNC stock.
Horizon Bancorp, Inc. (HBNC) generated $45.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Horizon Bancorp, Inc. (HBNC) generated $41.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Horizon Bancorp, Inc. (HBNC) spent $4.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Horizon Bancorp, Inc. (HBNC) returned $21.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.