HBNCHIGH SIGNALFINANCIAL10-K

HBNC experienced a massive financial deterioration with a swing from $35.4M profit to $150.5M loss while simultaneously reducing total assets by $1.4 billion.

The company appears to have undergone a significant balance sheet repositioning that resulted in substantial realized losses, as evidenced by loan revenues exceeding 290% of total revenue (indicating large losses in other areas). The dramatic increase in interest expense coupled with asset reduction suggests forced deleveraging under stress conditions.

Comparing 2026-03-13 vs 2025-03-14View on EDGAR →
FINANCIAL ANALYSIS

HBNC's financials show signs of severe distress with net income swinging from positive $35.4M to negative $150.5M while total assets contracted 17.5% from $7.8B to $6.4B. Interest expense nearly quadrupled to $136.6M and total debt was slashed by 80%, indicating emergency deleveraging and balance sheet repositioning that generated massive losses. Despite positive operating cash flow improvement, the overall picture signals a company in financial crisis mode executing a dramatic restructuring to stabilize operations.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+1144.2%
$6.4M$79.2M

Operating cash flow surged 1144.2% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
-524.7%
$35.4M-$150.5M

Net income declined 524.7% — review whether driven by operations, interest costs, or non-recurring items.

Provision for Credit Losses
P&L
-286.2%
$1.1M-$2.1M

Provisions reduced 286.2% — improving credit quality or reserve release boosting reported earnings.

Interest Expense
P&L
+274%
$36.5M$136.6M

Interest expense surged 274% — significant debt increase or rising rates materially impacting earnings.

Total Debt
Balance Sheet
-79.8%
$1.2B$248.6M

Debt reduced 79.8% — deleveraging strengthens balance sheet and reduces financial risk.

Cash & Equivalents
Balance Sheet
-52.5%
$293.4M$139.5M

Cash declined 52.5% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Liabilities
Balance Sheet
-18.3%
$7.0B$5.7B

Liabilities reduced 18.3% — deleveraging improves balance sheet strength and financial flexibility.

Total Assets
Balance Sheet
-17.5%
$7.8B$6.4B

Total assets contracted 17.5% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2026-03-13
PRIOR — 2025-03-14
ADDED
As of March 11, 2026, the registrant had 51,225,946 shares of common stock outstanding.
Risks, uncertainties, and factors that could cause the Company s actual results to vary materially from those expressed or implied by any forward looking statement include but are not limited to: current financial conditions within the banking industry; changes in the level and volatility of interest rates, spreads on earning assets and interest bearing liabilities, and interest rate sensitivity; loss of key Horizon personnel; changes within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and inflation levels.
At December 31, 2025, the Bank had total assets of $6.4 billion and total deposits of $5.3 billion.
In 2025, revenues from loans accounted for 291.4% of the total consolidated revenue, including the realized losses related to the balance sheet repositioning, and revenues from investment securities accounted for 42.9% of total consolidated revenue.
As of December 31, 2025, the Company emplo yed 465 full time and 26 part time employ ees across all locations.
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REMOVED
As of March 12, 2025, the registrant had 44,014,506 shares of common stock outstanding.
At December 31, 2024, the Bank had total assets of $7.8 billion and total deposits of $5.6 billion.
In 2024, revenues from loans accounted for 81.0% of the total consolidated revenue, and revenues from investment securities accounted for 15.5% of total consolidated revenue.
Website references in this Annual Report are merely textual references.
Stewart as Executive Vice President and Chief Financial Officer ( CFO ) of both Horizon and its wholly-owned bank subsidiary, effective as of May 20, 2024.
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