Horizon Bancorp, Inc. (HBNC): Marketing Mix Analysis [Dec-2025 Updated]

You're looking past the recent Q3 2025 noise to see where Horizon Bancorp, Inc. is actually heading, and frankly, their marketing mix tells a clear story of a regional bank making tough, strategic calls to secure durable returns. We see them actively reshaping their Product line-like ditching the indirect auto portfolio-while aggressively managing their Price strategy, pushing the Net Interest Margin toward a guided 4.15% to 4.25% by year-end, up from the 3.52% seen in Q3. I've broken down exactly how their core community banking Place, concentrated in Indiana and Michigan, and their disciplined Promotion efforts-focused on communicating balance sheet transformation-support this repositioning, so stick around to see the full four P's breakdown.

Horizon Bancorp, Inc. (HBNC) - Marketing Mix: Product

You're looking at the core services Horizon Bancorp, Inc. (HBNC) offers its clients as of late 2025. The product strategy centers on a diversified banking model, anchored by its community bank franchise.

Core offerings include commercial and retail banking services. Horizon Bancorp, Inc. operates as the holding company for Horizon Bank, which serves Midwestern markets. As of June 30, 2025, the total assets stood at $7.7 billion. The retail side includes prime residential and other secured consumer lending, alongside personal banking solutions. The commercial side encompasses in-market business banking and treasury management.

Commercial lending represents over half of total loans. This segment is the primary lending focus for Horizon Bancorp, Inc. At September 30, 2025, total loans held for investment (HFI) were $4.8 billion. The commercial engine showed strong organic growth, adding $57.9 million in net commercial loans in the third quarter of 2025, which translated to a 7.0% annualized growth rate for that segment. The company explicitly states that commercial lending makes up over half of total loans. That's the engine driving asset growth, even as other areas were strategically managed down.

Provides wealth management, treasury management, and national equipment financing. Beyond standard lending and deposits, Horizon Bancorp, Inc. offers specialized services. The bank provides equipment financing solutions on a regional and national basis. For instance, in Q3 2025, there was a syndication of $10 million in equipment finance instruments, which resulted in a net gain on sale of $300,000, representing a 3% gain on sale. Residential mortgage lending volume during the quarter was predominantly sold in the secondary market to align with balance sheet strategies, keeping fee income balances essentially flat.

Strategically exited the indirect auto loan portfolio in Q3 2025. This was a key part of the balance sheet repositioning efforts. Horizon Bancorp, Inc. completed the sale of approximately $176 million of its indirect auto portfolio on September 26, 2025. This exit was part of a larger plan that included signing letters of intent to sell approximately $190 million of these loans. The company noted that this higher-risk portfolio historically accounted for two-thirds of charge-offs, so the exit enhances the forward credit profile. The sale resulted in a realized loss on the indirect auto portfolio of $7.7 million in the third quarter.

Deposit products span checking, savings, and certificates of deposit (CDs). The funding side saw active management to reduce higher-cost balances. Total deposits stood at $5.5 billion as of September 30, 2025, a decrease of $178.9 million, or 3.1%, from June 30, 2025. This reduction was driven by a targeted effort to reduce non-core, higher-cost transactional deposit balances, with more than $125 million reduced in Q3 2025. Non-interest bearing balances remained relatively stable. Looking back to Q2 2025, time deposits fell by $51.9 million (or 4.2%), and savings and money market deposits saw a modest decrease of $7.0 million (or 0.4%). You're managing the mix to keep funding costs down.

Here's a quick look at the key balance sheet components as of the end of Q3 2025:

The product strategy clearly involves trimming non-core, lower-yielding assets like indirect auto loans while aggressively growing the core commercial loan book and optimizing the deposit base. The focus is definitely on the quality of the loan mix, not just the total volume.

Horizon Bancorp, Inc. (HBNC) - Marketing Mix: Place

Horizon Bancorp, Inc. operates a core community banking franchise across Midwestern markets. The geographic focus is diverse yet regionally concentrated. The physical presence is concentrated in Indiana and Michigan branches. Horizon Bancorp, Inc. serves customers through convenient digital and virtual tools.

Total assets stood at $7.7 billion as of June 30, 2025. The company is headquartered in Michigan City, Indiana.

The distribution network relies on a network of physical locations within its core markets, supplemented by digital access points. Here are details on some of the physical service points:

The company maintains its commitment to digital accessibility to complement its brick-and-mortar footprint. The strategy involves bringing the product to the market through these established channels.

• Serves customers across diverse Midwestern markets.
• Physical presence in Indiana and Michigan.
• Utilizes convenient digital and virtual tools.

Horizon Bancorp, Inc. (HBNC) - Marketing Mix: Promotion

You're looking at how Horizon Bancorp, Inc. (HBNC) communicates its value proposition, especially following its major strategic moves in 2025. The promotion strategy is heavily weighted toward investor and analyst communication, which serves as a primary channel for shaping market perception of the recent balance sheet transformation.

The core messaging, as articulated by President and CEO Thomas Prame following the third quarter of 2025, centers on disciplined execution and a focus on profitable growth moving into 2026. This language is a direct appeal to the financial community, signaling a shift from reactive measures to proactive, controlled management. Management explicitly emphasizes their commitment to creating durable returns and sustainable long-term value for shareholders, a key theme in their late 2025 investor communications. This focus is a direct promotional effort to re-anchor the company's narrative around quality of earnings and capital efficiency.

Investor relations functions as a critical promotional arm, detailing the strategic balance sheet transformation. This communication effort is necessary to explain the significant, one-time actions taken to improve the underlying structure of the organization. The transformation involved several large-scale financial maneuvers, which are promotional points in themselves, demonstrating management's capability to act decisively.

A concrete example of funding this strategy was the underwritten public offering that closed on August 22, 2025. Horizon Bancorp, Inc. sold 7,138,050 shares of common stock at a price to the public of $14.50 per share, generating aggregate gross proceeds of approximately $103.5 million. The net proceeds realized were $98.6 million. Honestly, this capital raise was a necessary step to support the repositioning, and the communication around it was designed to frame it as a strategic enabler, not a sign of distress.

The strength of the core community banking model is consistently highlighted across earnings calls as the foundation that remains strong underneath the balance sheet restructuring noise. This is a direct promotional effort to assure stakeholders that the day-to-day business is sound. For instance, management noted the strength of the exceptional core community banking franchise in the second quarter of 2025 and again in the third quarter of 2025. This is the tangible asset they promote as the engine for future performance.

Here's a quick look at the key financial metrics tied to the balance sheet repositioning that were promoted to investors as evidence of successful execution:

The promotion of the core franchise strength is further supported by operational highlights that you should track:

• Net interest margin (NIM) expansion to 3.52% in Q3 2025.
• NIM expansion for the seventh consecutive quarter as of Q2 2025.
• Total loans held for investment (HFI) growth of 5% linked quarter annualized in Q1 2025.
• Allowance for Credit Losses as a percentage of period-end loans HFI at 1.04% as of September 30, 2025.
• The organization's asset size as of June 30, 2025, was $7.7 billion.

The narrative is clear: Horizon Bancorp, Inc. used capital events to execute a strategic repositioning, and the underlying, promoted community bank model is delivering strong metrics like NIM expansion, all while focusing on profitable growth.

Horizon Bancorp, Inc. (HBNC) - Marketing Mix: Price

You're looking at how Horizon Bancorp, Inc. (HBNC) prices its offerings, which is fundamentally tied to its net interest margin (NIM) performance. The pricing strategy here is clearly focused on driving margin expansion through disciplined rate management on both the asset and liability sides of the balance sheet. This focus is paying off; the Net Interest Margin (NIM) expanded to 3.52% in Q3 2025, marking the eighth consecutive quarterly increase. That's a clear signal of effective pricing execution. Right now, management guides for Q4 2025 NIM to reach between 4.15% and 4.25%, which suggests continued, aggressive pricing action is expected to close out the year strong.

Here's a quick view of the key pricing and margin-related figures from the latest reporting period:

The pricing strategy is disciplined on both loan and deposit rates to drive margin expansion. This isn't just about setting a single rate; it's about the entire structure of how Horizon Bancorp, Inc. (HBNC) costs its money and prices its assets. You can see the results of this discipline in the following areas:

• Pricing strategy is disciplined on both loan and deposit rates to drive margin expansion.
• NIM expansion reflects successful repricing of assets relative to liabilities.
• The cost of capital structure is being actively managed, as evidenced by new debt issuance.

When we look at non-interest income derived from the deposit base, which is a component of the overall pricing structure for deposit services, Q3 2025 service charges on deposit accounts generated $3.47 million in non-interest income. This shows a steady component of fee-based revenue supporting the overall financial picture. Also, consider the cost side of capital structure; the recent funding activities factor directly into the cost of funds. The cost of capital includes a 7.00% fixed-to-floating rate on the $100 million subordinated notes issued in August 2025. That's a specific, measurable cost you need to factor into your analysis of their funding strategy.