HORIZON BANCORP INC /IN/ 8-K

What Happened Horizon Bancorp (HBNC) announced in an 8-K filed June 30, 2026 that a jury on June 24, 2026 returned a civil verdict against its subsidiary, Horizon Bank, in a lawsuit dating to 2018 involving the repossession and credit reporting of one vehicle from its legacy indirect auto business. The jury awarded damages approaching $3.0 million, including $2.5 million in punitive damages. Horizon says it strongly disagrees with the verdict and will pursue an appeal.

Key Details

• Jury verdict date: June 24, 2026; 8-K filed June 30, 2026.
• Award: approximately $3.0 million total damages, with $2.5 million punitive.
• Financial action: Company will record ~ $3.0 million pre-tax expense to its reserve in Q2 and will hold that reserve until the appeal is resolved.
• Business context: Horizon discontinued new originations in its indirect auto finance business in 2023 and exited a majority of remaining exposure in 2024; company does not expect broader exposure from this case.

Why It Matters This event will reduce Horizon’s pre-tax earnings for the second quarter by about $3.0 million due to the reserve addition. Management characterizes the matter as isolated to a single loan from the legacy indirect auto business and says it does not expect this to disrupt its core community banking operations. Investors should watch the company’s July earnings call for Q2 results and any updates on the appeal or potential further legal outcomes.