Horizon Bancorp Terminates Non-Binding Letter of Intent for Mortgage Warehouse Business; Maintains Fourth Quarter Guidance

Horizon Bancorp, Inc. recently announced the termination of a non-binding letter of intent regarding the sale of its mortgage warehouse business. The termination, effective November 22, 2024, involved the mutual agreement between Horizon and the potential buyer to discontinue the previously established arrangement.

The initial letter of intent, which was disclosed in October 2024, had indicated the potential sale of the mortgage warehouse business. This development was revealed in various corporate communications, including a press release and an investor presentation shared in connection with a Current Report on Form 8-K submitted by the company to the Securities and Exchange Commission (SEC) on October 23, 2024. Additionally, the company’s Quarterly Report on Form 10-Q, filed on November 12, 2024, had elaborated on this in Note 15 – Subsequent Events.

Despite the termination of the letter of intent, Horizon Bancorp has confirmed that this event does not impact the guidance provided for the fourth quarter of 2024. The company remains open to exploring alternative options for the sale of its mortgage warehouse business to other interested parties. However, the exact timing and terms of any potential future transactions remain uncertain at this stage.

In its forward-looking statements, Horizon Bancorp emphasized the importance of considering factors beyond the company’s immediate control. The volatile nature of the banking industry, fluctuating interest rates, regulatory developments, economic conditions, and emerging technologies were highlighted as potential risks that could influence future performance.

While the termination of the letter of intent marks a shift in Horizon Bancorp’s strategic direction, the company continues to focus on its operational goals for the upcoming period. The decision to discontinue the sale does not alter the financial outlook previously communicated by the company. Moreover, Horizon Bancorp’s commitment to transparency and effective risk management was reaffirmed in light of this recent development.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Horizon Bancorp’s 8K filing here.

Horizon Bancorp Company Profile

Horizon Bancorp, Inc operates as the bank holding company for Horizon Bank that engages in the provision of commercial and retail banking services. The company offers checking, saving, money market, certificate of deposits, individual retirement accounts, and time deposits, as well as non-interest- and interest-bearing demand deposits.