Horizon Bancorp downgraded on capital ratio pressure at Raymond James

Raymond James analyst David Long downgraded Horizon Bancorp to Market Perform from Outperform without a price target. The analyst expects continued earnings and pro forma capital ratio pressure. The firm reduced the bank’s earnings outlook and maintains a negative bias to estimates given Horizon’s recent deposit flow and mix trends. Horizon more than doubled its investment securities portfolio for the 12 months ending March 31, 2022 to over $3B when rates were near historical lows, the analyst tells investors in a research note. The firm says the bank’s securities portfolio made up 42% of its average earning assets and averaged a yield of only 2.44% in Q1.