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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2023

HORIZON BANCORP, INC.
(Exact name of registrant as specified in its charter)
Indiana000-1079235-1562417
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
515 Franklin Street
Michigan City, IN 46360
(Address of principal executive offices, including zip code)

(219) 879-0211
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common stock, no par valueHBNCThe NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


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Item 2.02 Results of Operations and Financial Condition

On October 25, 2023, Horizon Bancorp, Inc. (the “Company”) issued a press release announcing earnings and other financial results for the three–month period ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference.

Item 7.01 Regulation FD Disclosure

Investor Presentation

The Company has prepared presentation materials (the “Investor Presentation”) that management intends to use during its previously announced Earnings Conference Call on Thursday, October 26, 2023 at 7:30 a.m. Central Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Company may use the Investor Presentation, possibly with modifications, in presentations to current and potential investors, analysts, lenders, business partners, acquisition candidates, customers, employees and others with an interest in the Company and its business.

A copy of the Investor Presentation is furnished as Exhibit 99.2 to this report and incorporated here by reference. The Investor Presentation is also available on the Company’s investor website at www.horizonbank.com. Materials on the Company’s investor website are not part of or incorporated by reference into this report.

In accordance with General Instruction B.2 of Form 8–K, the information in this Current Report on Form 8–K, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits
(d) Exhibits
EXHIBIT INDEX
Exhibit No.DescriptionLocation
99.1Attached
99.2Attached
104Cover Page Interactive Data File (Embedded within the Inline XBRL document)Within the Inline XBRL document



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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:October 25, 2023HORIZON BANCORP, INC.
By:/s/ Mark E. Secor
Mark E. Secor,
Executive Vice President & Chief Financial Officer



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horizonbancorpinc876_sm-10a.jpg
Contact:Mark E. Secor
Chief Financial Officer
Phone:
(219) 873–2611
Fax:
(219) 874–9280
Date:October 25, 2023

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports Third Quarter 2023 Results

Michigan City, Indiana, October 25, 2023 (GLOBE NEWSWIRE) – (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2023.

“Horizon's third quarter performance demonstrated our diversified lending platform's ability to produce solid growth while successfully continuing to shift our loan mix to higher yielding assets. This strategy paired with the strength of our credit culture will continue to add value over time,” President and Chief Executive Officer Thomas M. Prame said. “Horizon's core deposit funding base remained stable and our business units provided another promising quarter of non–interest income results. Recognizing the near term headwinds facing the banking industry, Horizon remains dedicated to disciplined expense management and prudently deploying resources into new revenue opportunities that can quickly realize positive momentum.”

Third Quarter 2023 Highlights

•Net income was $16.2 million or $0.37 per diluted share. This compared to $18.8 million or $0.43 in the second quarter of 2023, which included an after–tax benefit of approximately $1.1 million, or $0.02 per share on a non–recurring swap termination fee.

•Loans totaled $4.36 billion at period end, increasing by 8.2% annualized during the quarter and 6.4% annualized since December 31, 2022. Commercial loan growth totaled $83.0 million, increasing by 13.1% annualized during the quarter and 6.6% annualized since December 31, 2022.

•Deposits remained resilient, totaling $5.7 billion at period end, compared to $5.7 billion on June 30, 2023. Brokered deposits and wholesale borrowing levels were consistent with second quarter balances.

•Net interest income was $42.1 million. This compared to $46.2 million in the linked quarter, which benefited from the aforementioned non–recurring swap termination fee by $1.5 million.

•Non–interest income expanded to $11.8 million from $11.0 million in the linked quarter, primarily due to higher mortgage–related revenue.

•Well–managed non–interest expense was $36.2 million, or 1.81% of average assets annualized. Results slightly improved from the second quarter, even with an additional $460,000 in FDIC insurance expense.

•Maintained sound asset quality, with 30 to 89 days delinquent loans representing 0.30% of total loans and non–performing loans representing 0.45% of total loans at period end, as well as net charge–offs representing 0.02% of average loans during the quarter.

•Horizon's dividend performance included a 5.99% yield as of September 30, 2023, with cash maintained at the holding company level representing approximately eight quarters of dividend payments and fixed costs.

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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Summary
For the Three Months Ended
September 30,June 30,September 30,
Net Interest Income and Net Interest Margin202320232022
Net interest income$42,090 $46,160 $51,861 
Net interest margin2.41 %2.69 %3.04 %
Adjusted net interest margin2.38 %2.57 %2.99 %
For the Three Months Ended
September 30,June 30,September 30,
Asset Yields and Funding Costs202320232022
Interest earning assets4.48 %4.39 %3.58 %
Interest bearing liabilities2.52 %2.10 %0.69 %
For the Three Months Ended
Non-interest Income and September 30,June 30,September 30,
Mortgage Banking Income202320232022
Total non–interest income
$11,830 $10,997 $10,188 
Gain on sale of mortgage loans1,582 1,005 1,441 
Mortgage servicing income net of impairment631 640 355 
For the Three Months Ended
September 30,June 30,September 30,
Non-interest Expense202320232022
Total non–interest expense
$36,168 $36,262 $36,816 
Annualized non–interest expense to average assets
1.81 %1.86 %1.91 %
For the Three Months Ended
September 30,June 30,September 30,
Credit Quality202320232022
Allowance for credit losses to total loans1.14 %1.17 %1.27 %
Non–performing loans to total loans
0.45 %0.52 %0.47 %
Percent of net charge–offs to average loans outstanding for the period
0.02 %0.01 %0.00 %
September 30,Net ReserveDecember 31,
Allowance for Credit Losses20233Q232Q231Q232022
Commercial$29,472 $(882)$(802)$(1,289)$32,445 
Retail Mortgage2,794 (854)(799)(1,130)5,577 
Warehouse714 (179)95 (222)1,020 
Consumer16,719 1,638 1,956 1,703 11,422 
Allowance for Credit Losses (“ACL”)$49,699 $(277)$450 $(938)$50,464 
ACL / Total Loans1.14 %1.21 %
Acquired Loan Discount (“ALD”)$5,148 $(371)$(639)$(121)$6,279 

“Our historical conservative credit culture remains a strength of Horizon as displayed by our third quarter asset quality metrics,” Mr. Prame added. “We believe our focus on lending to well–qualified borrowers, the teams' proactive and proven approach to loss mitigation, and our focus on building a diverse portfolio will further position us well to traverse a fluid economic outlook.”


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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Income Statement Highlights

Net income for the third quarter of 2023 was $16.2 million, or $0.37 diluted earnings per share, compared to $18.8 million, or $0.43, for the linked quarter and $23.8 million, or $0.55, for the prior year period. The change in net income for the third quarter of 2023 when compared to the linked quarter, reflects growth in non–interest income of $833,000 and decreases in credit loss expense of $417,000, income tax expense of $168,000 and non–interest expense of $94,000, offset by a decrease in net interest income of $4.1 million.

Net interest income was $42.1 million in the third quarter of 2023, compared to $46.2 million in the linked quarter which benefited from a swap termination fee of $1.5 million.

Total non–interest income of $11.8 million was $833,000 higher in the third quarter of 2023 when compared to the second quarter of 2023, primarily due to a $615,000 increase in other income and a $577,000 increase in gain on sale of mortgage loans, offset by a decrease of $398,000 in interchange fees.

Total non–interest expense was $94,000 lower in the third quarter of 2023 when compared to the second quarter of 2023, primarily due to a $277,000 decrease in loan expense, a $199,000 decrease in outside services and consultants and a $119,000 decrease in other expense, offset by an increase $460,000 increase in FDIC insurance expense from the linked quarter.

Horizon's effective tax rate was 7.3% for the third quarter of 2023, with income tax expense of $1.3 million decreasing $168,000 when compared to the second quarter of 2023.

Net Interest Margin

Horizon’s net interest margin (“NIM”) was 2.41% for the third quarter of 2023. This compared to 2.69% for the second quarter of 2023, when NIM benefited by approximately 0.08% from a non–recurring swap termination fee.

Net interest margin, excluding the aforementioned swap termination fee in the linked quarter and acquisition–related purchase accounting adjustments (“adjusted net interest margin”), was 2.38% for the third quarter of 2023, compared to 2.57% for the linked quarter. (See the “Non–GAAP Reconciliation of Net Interest Margin” table below).


Lending Activity

Total loan balances and loans held for sale increased to $4.36 billion on September 30, 2023 compared to $4.27 billion on June 30, 2023. During the three months ended September 30, 2023, commercial loans increased $83.0 million, consumer loans increased $25.6 million and residential mortgage loans increased $648,000, offset by a decrease in mortgage warehouse loans of $16.4 million and loans held for sale of $4.1 million.

Lending activity in the third quarter was led by strong results of our relationship banking model in commercial lending. Mortgage banking activities aligned with client demand in a continuing rising interest rate environment, while the lift in consumer balances was primarily in home equity loans, which offset a decrease in indirect auto lending. These results reflect the continued strategic shift of the organization to focus on higher yielding assets.

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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Loan Growth by Type
(Dollars in Thousands, Unaudited)
September 30,June 30,QTDQTDAnnualized
20232023$ Change% Change% Change
Commercial$2,589,244 $2,506,279 $82,965 3.3%13.1%
Residential mortgage675,399 674,751 648 0.1%0.4%
Mortgage warehouse65,923 82,345 (16,422)(19.9)%(79.1)%
Consumer1,028,436 1,002,885 25,551 2.5%10.1%
Total loans4,359,002 4,266,260 92,742 2.6%8.6%
Loans held for sale2,828 6,933 (4,105)(59.2)%(234.9)%
Total loans and loans held for sale$4,361,830 $4,273,193 $88,637 2.5%8.2%
Deposit Activity

Total deposit balances of $5.70 billion on September 30, 2023 decreased 0.16% compared to $5.71 billion on June 30, 2023.

The deposit mix at the end of the third quarter of 2023 represented the demand for clients to earn more interest on their excess funds and consumers spending excess liquidity. The Bank's tenured and granular core deposit relationships remain steadfast, reflecting the value of Horizon's relationship banking model and local community engagement.

Deposit Growth by Type
(Dollars in Thousands, Unaudited)
September 30,June 30,QTDQTDAnnualized
20232023$ Change% Change% Change
Non–interest bearing$1,126,703 $1,170,055 $(43,352)(3.7)%(15.0)%
Interest bearing3,322,788 3,289,474 33,314 1.0%4.1%
Time deposits1,250,606 1,249,803 803 0.1%0.3%
Total deposits$5,700,097 $5,709,332 $(9,235)(0.2)%(0.7)%


Capital

The capital resources of the Company and the Bank continued to exceed regulatory capital ratios for “well capitalized” banks at September 30, 2023. Stockholders’ equity totaled $693.4 million at September 30, 2023 and the ratio of average stockholders’ equity to average assets was 8.99% for the nine months ended September 30, 2023.

Tangible book value, which excludes intangible assets from total equity, per common share (“TBVPS”) was $12.00, decreasing $0.34 during the third quarter of 2023, as meaningfully higher interest rates led to unrealized net losses on securities available for sale (“AFS”) of $2.83 per common share, reducing accumulated other comprehensive income (“AOCI”) by $25.5 million in the three months ending September 30, 2023. TBVPS increased by $0.41 during the first nine months of the year. Tangible common equity was changed modestly to 6.72% of tangible assets as of September 30, 2023, a decrease of 19 basis points during the quarter but still elevated by 16 basis points since December 31, 2022.


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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
The following table presents the actual regulatory capital dollar amounts and ratios of the Company and the Bank as of September 30, 2023.
ActualRequired for Capital Adequacy PurposesRequired for Capital Adequacy Purposes with Capital BufferWell Capitalized
Under Prompt Corrective Action Provisions
$Ratio$Ratio$Ratio$Ratio
Total capital (to risk–weighted assets)
Consolidated$812,586 14.55 %$446,920 8.00 %$586,582 10.50 %N/AN/A
Bank741,748 13.28 %446,733 8.00 %586,337 10.50 %$558,416 10.00 %
Tier 1 capital (to risk–weighted assets)
Consolidated762,887 13.66 %335,190 6.00 %474,852 8.50 %N/AN/A
Bank692,049 12.39 %335,050 6.00 %474,654 8.50 %446,733 8.00 %
Common equity tier 1 capital (to risk–weighted assets)
Consolidated646,716 11.58 %251,392 4.50 %391,055 7.00 %N/AN/A
Bank692,049 12.39 %251,287 4.50 %390,891 7.00 %362,971 6.50 %
Tier 1 capital (to average assets)
Consolidated762,887 9.98 %305,700 4.00 %305,700 4.00 %N/AN/A
Bank692,049 8.94 %309,532 4.00 %309,532 4.00 %386,915 5.00 %


Liquidity

The Bank maintains a stable base of core deposits provided by long–standing and new relationships with individuals and local businesses. These deposits are the principal source of liquidity for Horizon. Other sources of liquidity for Horizon include earnings, loan repayments, investment security cash flows, proceeds from the sale of residential mortgage loans, unpledged investment securities and borrowing relationships with correspondent banks, including the Federal Home Loan Bank of Indianapolis (the “FHLB”). On September 30, 2023, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $1.64 billion in unused credit lines with various money center banks, including the FHLB and the Federal Reserve Bank. The Bank had approximately $622.9 million of unpledged investment securities on September 30, 2023.





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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward–looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward–looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward–looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward–looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry, including the effects of recent failures of other financial institutions, liquidity levels, and responses by the Federal Reserve, Department of the Treasury, and the Federal Deposit Insurance Corporation to address these issues; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the ability of Horizon to remediate its material weaknesses in its internal control over financial reporting; continuing increases in inflation; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; economic conditions and their impact on Horizon and its customers, including local and global economic recovery from the pandemic; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; material changes outside the U.S. or in overseas relations, including changes in U.S. trade relations related to imposition of tariffs, Brexit, and the phase out of the London Interbank Offered Rate (“LIBOR”); the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward–looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10–K, Quarterly Reports on Form 10–Q, and Current Reports on Form 8–K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward–looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Financial Highlights
(Dollars in Thousands, Unaudited)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Balance sheet:
Total assets$7,959,434 $7,963,353 $7,897,995 $7,872,518 $7,718,695 
Interest earning deposits & federal funds sold76,293 119,637 30,221 12,233 7,302 
Interest earning time deposits2,207 2,452 3,098 2,812 2,814 
Investment securities2,831,651 2,889,309 2,958,978 3,020,306 3,017,191 
Commercial loans2,589,244 2,506,279 2,505,459 2,467,422 2,403,743 
Mortgage warehouse loans65,923 82,345 52,957 69,529 73,690 
Residential mortgage loans675,399 674,751 662,459 653,292 634,901 
Consumer loans1,028,436 1,002,885 1,026,076 967,755 919,198 
Total loans4,359,002 4,266,260 4,246,951 4,157,998 4,031,532 
Earning assets7,306,490 7,319,100 7,273,921 7,225,833 7,087,368 
Non–interest bearing deposit accounts1,126,703 1,170,055 1,231,845 1,277,768 1,315,155 
Interest bearing transaction accounts3,322,788 3,289,474 3,402,525 3,582,891 3,736,798 
Time deposits1,250,606 1,249,803 1,067,575 997,115 778,885 
Total deposits5,700,097 5,709,332 5,701,945 5,857,774 5,830,838 
Borrowings1,356,510 1,352,039 1,311,927 1,142,949 1,048,091 
Subordinated notes59,007 58,970 58,933 58,896 58,860 
Junior subordinated debentures issued to capital trusts57,201 57,143 57,087 57,027 56,966 
Total stockholders’ equity693,369 709,243 702,559 677,375 644,993 

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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Income statement:
Net interest income$42,090 $46,160 $45,237 $48,782 $51,861 
Credit loss expense (recovery)263 680 242 (69)(601)
Non–interest income11,830 10,997 9,620 10,674 10,188 
Non–interest expense36,168 36,262 34,524 35,711 36,816 
Income tax expense1,284 1,452 1,863 2,649 2,013 
Net income$16,205 $18,763 $18,228 $21,165 $23,821 
Per share data:
Basic earnings per share$0.37 $0.43 $0.42 $0.49 $0.55 
Diluted earnings per share0.37 0.43 0.42 0.48 0.55 
Cash dividends declared per common share0.16 0.16 0.16 0.16 0.16 
Book value per common share15.89 16.25 16.11 15.55 14.80 
Tangible book value per common share12.00 12.34 12.17 11.59 10.82 
Market value – high12.68 11.10 16.32 20.00 20.59 
Market value – low$9.90 $7.75 $10.31 $14.51 $16.74 
Weighted average shares outstanding – Basis43,646,609 43,639,987 43,583,554 43,574,151 43,573,370 
Weighted average shares outstanding – Diluted43,796,069 43,742,588 43,744,721 43,667,953 43,703,793 
Key ratios:
Return on average assets0.81 %0.96 %0.94 %1.09 %1.24 %
Return on average common stockholders’ equity8.99 10.59 10.66 12.72 13.89 
Net interest margin2.41 2.69 2.67 2.85 3.04 
Allowance for credit losses to total loans1.14 1.17 1.17 1.21 1.27 
Average equity to average assets9.03 9.07 8.86 8.55 8.91 
Efficiency ratio67.08 63.44 62.93 60.06 59.33 
Annualized non–interest expense to average assets1.81 1.86 1.79 1.84 1.91 
Bank only capital ratios:
Tier 1 capital to average assets8.94 8.72 8.86 8.89 8.84 
Tier 1 capital to risk weighted assets12.39 12.12 12.65 12.72 12.74 
Total capital to risk weighted assets13.28 13.03 13.56 13.59 13.65 




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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results




Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
Nine Months Ended
September 30,September 30,
20232022
Income statement:
Net interest income$133,487 $150,736 
Credit loss expense (recovery)1,185 (1,747)
Non–interest income32,447 36,777 
Non–interest expense106,954 107,490 
Income tax expense4,599 9,527 
Net income$53,196 $72,243 
Per share data:
Basic earnings per share$1.22 $1.66 
Diluted earnings per share1.21 1.65 
Cash dividends declared per common share0.32 0.47 
Book value per common share16.25 14.80 
Tangible book value per common share12.34 10.82 
Market value – high16.32 23.45 
Market value – low$7.75 $16.72 
Weighted average shares outstanding – Basis43,611,926 43,567,028 
Weighted average shares outstanding – Diluted43,757,321 43,699,035 
Key ratios:
Return on average assets0.90 %1.29 %
Return on average common stockholders’ equity10.06 13.97 
Net interest margin2.59 3.02 
Allowance for credit losses to total loans1.14 1.27 
Average equity to average assets8.99 9.25 
Efficiency ratio64.46 57.32 
Annualized non–interest expense to average assets1.82 1.92 
Bank only capital ratios:
Tier 1 capital to average assets8.94 8.84 
Tier 1 capital to risk weighted assets12.39 12.74 
Total capital to risk weighted assets13.28 13.65 
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Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Financial Highlights
(Dollars in Thousands Except Ratios, Unaudited)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Loan data:
Substandard loans$47,624 $41,484 $49,804 $56,194 $57,932 
30 to 89 days delinquent13,089 10,913 13,971 10,709 6,970 
Non–performing loans:
90 days and greater delinquent – accruing interest392 1,313 137 92 193 
Trouble debt restructures – accruing interest— — — 2,570 2,529 
Trouble debt restructures – non–accrual— — — 1,548 1,665 
Non–accrual loans19,056 20,796 19,660 17,630 14,771 
Total non–performing loans$19,448 $22,109 $19,797 $21,840 $19,158 
Non–performing loans to total loans0.45 %0.52 %0.47 %0.52 %0.47 %

Allocation of the Allowance for Credit Losses
(Dollars in Thousands, Unaudited)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Commercial $29,472 $30,354 $31,156 $32,445 $33,806 
Residential mortgage2,794 3,648 4,447 5,577 5,137 
Mortgage warehouse714 893 798 1,020 1,024 
Consumer16,719 15,081 13,125 11,422 11,402 
Total$49,699 $49,976 $49,526 $50,464 $51,369 
Net Charge–offs (Recoveries)
(Dollars in Thousands Except Ratios, Unaudited)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Commercial $142 $101 $104 $(94)$51 
Residential mortgage(39)(10)(6)(8)(75)
Mortgage warehouse— — — — — 
Consumer619 183 281 387 162 
Total$722 $274 $379 $285 $138 
Percent of net charge–offs (recoveries) to average loans outstanding for the period0.02 %0.01 %0.01 %0.01 %0.00 %
10
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Total Non–performing Loans
(Dollars in Thousands Except Ratios, Unaudited)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Commercial $6,969 $8,275 $8,523 $9,330 $7,199 
Residential mortgage7,777 8,168 6,926 8,123 8,047 
Mortgage warehouse— — — — — 
Consumer4,702 5,666 4,348 4,387 3,912 
Total$19,448 $22,109 $19,797 $21,840 $19,158 
Non–performing loans to total loans0.45 %0.52 %0.47 %0.52 %0.47 %
Other Real Estate Owned and Repossessed Assets
(Dollars in Thousands, Unaudited)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Commercial $1,287 $1,567 $1,567 $1,881 $3,206 
Residential mortgage32 107 203 107 22 
Mortgage warehouse— — — — — 
Consumer72 7 78 152 14 
Total$1,391 $1,681 $1,848 $2,140 $3,242 
11
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Average Balance Sheets
(Dollars in Thousands, Unaudited)
Three Months EndedThree Months Ended
September 30, 2023September 30, 2022
Average
Balance		InterestAverage
Rate		Average
Balance		InterestAverage
Rate
Assets
Interest earning assets
Federal funds sold$92,305 $1,247 5.36 %$4,201 $24 2.27 %
Interest earning deposits8,018 85 4.21 %9,994 41 1.63 %
Investment securities – taxable1,684,590 8,788 2.07 %1,728,197 8,436 1.94 %
Investment securities – non–taxable (1)
1,220,998 7,002 2.88 %1,384,249 7,478 2.71 %
Loans receivable (2) (3)
4,280,700 63,003 5.86 %3,929,567 45,517 4.61 %
Total interest earning assets7,286,611 80,125 4.48 %7,056,208 61,496 3.58 %
Non–interest earning assets
Cash and due from banks100,331 99,221 
Allowance for credit losses(49,705)(52,303)
Other assets587,514 531,976 
Total average assets$7,924,751 $7,635,102 
Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits$4,538,698 $24,704 2.16 %$4,478,741 $4,116 0.36 %
Borrowings1,180,452 10,399 3.50 %813,873 3,756 1.83 %
Repurchase agreements136,784 825 2.39 %141,283 139 0.39 %
Subordinated notes58,983 880 5.92 %58,836 880 5.93 %
Junior subordinated debentures issued to capital trusts57,166 1,227 8.52 %56,928 744 5.19 %
Total interest bearing liabilities5,972,083 38,035 2.52 %5,549,661 9,635 0.69 %
Non–interest bearing liabilities
Demand deposits1,159,241 1,351,857 
Accrued interest payable and other liabilities77,942 53,208 
Stockholders’ equity715,485 680,376 
Total average liabilities and stockholders’ equity$7,924,751 $7,635,102 
Net interest income / spread$42,090 1.96 %$51,861 2.89 %
Net interest income as a percent of average interest earning assets (1)
2.41 %3.04 %
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
(2) Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non–accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. The average rate is presented on a tax equivalent basis.

12
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Average Balance Sheets
(Dollars in Thousands, Unaudited)
Nine Months EndedNine Months Ended
September 30, 2023September 30, 2022
Average
Balance		InterestAverage
Rate		Average
Balance		InterestAverage
Rate
Assets
Interest earning assets
Federal funds sold$43,976 $1,706 5.19 %$82,667 $131 0.21 %
Interest earning deposits8,597 254 3.95 %15,404 93 0.81 %
Investment securities – taxable1,706,083 26,253 2.06 %1,715,478 24,499 1.91 %
Investment securities – non–taxable (1)
1,258,345 21,617 2.91 %1,346,173 21,482 2.70 %
Loans receivable (2) (3)
4,216,817 178,961 5.70 %3,779,921 122,641 4.36 %
Total interest earning assets7,233,818 228,791 4.35 %6,939,643 168,846 3.37 %
Non–interest earning assets
Cash and due from banks102,264 100,067 
Allowance for credit losses(49,839)(53,038)
Other assets579,203 486,862 
Total average assets$7,865,446 $7,473,534 
Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits$4,494,821 $58,481 1.74 %$4,499,441 $7,289 0.22 %
Borrowings1,137,289 28,702 3.37 %644,803 6,209 1.29 %
Repurchase agreements138,706 2,011 1.94 %140,837 216 0.21 %
Subordinated notes58,947 2,641 5.99 %58,800 2,641 6.01 %
Junior subordinated debentures issued to capital trusts57,108 3,469 8.12 %56,869 1,755 4.13 %
Total interest bearing liabilities5,886,871 95,304 2.16 %5,400,750 18,110 0.45 %
Non–interest bearing liabilities
Demand deposits1,200,133 1,336,912 
Accrued interest payable and other liabilities71,280 44,343 
Stockholders’ equity707,162 691,529 
Total average liabilities and stockholders’ equity$7,865,446 $7,473,534 
Net interest income / spread$133,487 2.19 %$150,736 2.92 %
Net interest income as a percent of average interest earning assets (1)
2.59 %3.02 %
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
(2) Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non–accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. The average rate is presented on a tax equivalent basis.

13
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
September 30,
2023		December 31,
2022
(Unaudited)
Assets
Cash and due from banks$175,137 $123,505 
Interest earning time deposits2,207 2,812 
Investment securities, available for sale865,168 997,558 
Investment securities, held to maturity (fair value $1,556,845 and $1,681,309)
1,966,483 2,022,748 
Loans held for sale2,828 5,807 
Loans, net of allowance for credit losses of $49,699 and $50,464
4,309,303 4,107,534 
Premises and equipment, net94,716 92,677 
Federal Home Loan Bank stock34,509 26,677 
Goodwill155,211 155,211 
Other intangible assets14,530 17,239 
Interest receivable37,850 35,294 
Cash value of life insurance149,212 146,175 
Other assets152,280 139,281 
Total assets$7,959,434 $7,872,518 
Liabilities
Deposits
Non–interest bearing$1,126,703 $1,277,768 
Interest bearing4,573,394 4,580,006 
Total deposits5,700,097 5,857,774 
Borrowings1,356,510 1,142,949 
Subordinated notes59,007 58,896 
Junior subordinated debentures issued to capital trusts57,201 57,027 
Interest payable16,281 5,380 
Other liabilities76,969 73,117 
Total liabilities7,266,065 7,195,143 
Commitments and contingent liabilities
Stockholders’ equity
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares
— — 
Common stock, no par value, Authorized 99,000,000 shares
   Issued and outstanding 44,116,739 and 43,937,889 shares
— — 
Additional paid–in capital355,478 354,188 
Retained earnings461,325 429,385 
Accumulated other comprehensive income (loss)(123,434)(106,198)
Total stockholders’ equity693,369 677,375 
Total liabilities and stockholders’ equity$7,959,434 $7,872,518 
14
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Interest income
Loans receivable$63,003 $60,594 $55,364 $50,859 $45,517 
Investment securities – taxable8,788 8,740 8,725 8,702 8,436 
Investment securities – non–taxable7,002 7,059 7,556 7,543 7,478 
Other1,332 475 153 83 65 
Total interest income80,125 76,868 71,798 67,187 61,496 
Interest expense
Deposits24,704 18,958 14,819 10,520 4,116 
Borrowed funds11,224 9,718 9,771 6,040 3,895 
Subordinated notes880 881 880 881 880 
Junior subordinated debentures issued capital trusts1,227 1,151 1,091 964 744 
Total interest expense38,035 30,708 26,561 18,405 9,635 
Net interest income42,090 46,160 45,237 48,782 51,861 
Credit loss expense (recovery)263 680 242 (69)(601)
Net interest income after credit loss expense41,827 45,480 44,995 48,851 52,462 
Non–interest Income
Service charges on deposit accounts3,086 3,021 3,028 2,947 3,023 
Wire transfer fees120 116 109 118 148 
Interchange fees3,186 3,584 2,867 2,951 3,089 
Fiduciary activities1,206 1,247 1,275 1,270 1,203 
Gain (loss) on sale of investment securities— 20 (500)— — 
Gain on sale of mortgage loans1,582 1,005 785 1,196 1,441 
Mortgage servicing income net of impairment631 640 713 637 355 
Increase in cash value of bank owned life insurance1,055 1,015 981 751 814 
Other income964 349 362 804 115 
Total non–interest income11,830 10,997 9,620 10,674 10,188 
Non–interest expense
Salaries and employee benefits20,058 20,162 18,712 19,978 20,613 
Net occupancy expenses3,283 3,249 3,563 3,279 3,293 
Data processing2,999 3,016 2,669 2,884 2,539 
Professional fees707 633 533 694 552 
Outside services and consultants2,316 2,515 2,717 2,985 2,855 
Loan expense1,120 1,397 1,118 1,281 1,392 
FDIC insurance expense1,300 840 540 388 670 
Core deposit intangible amortization903 903 903 925 926 
Other losses188 134 221 118 398 
Other expenses3,294 3,413 3,548 3,179 3,578 
Total non–interest expense36,168 36,262 34,524 35,711 36,816 
Income before income taxes17,489 20,215 20,091 23,814 25,834 
Income tax expense1,284 1,452 1,863 2,649 2,013 
Net income$16,205 $18,763 $18,228 $21,165 $23,821 
Basic earnings per share$0.37 $0.43 $0.42 $0.49 $0.55 
Diluted earnings per share0.37 0.43 0.42 0.48 0.55 
15
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Nine Months Ended
September 30,September 30,
20232022
Interest income
Loans receivable$178,961 $122,641 
Investment securities – taxable26,253 24,500 
Investment securities – non–taxable21,617 21,482 
Other1,960 223 
Total interest income228,791 168,846 
Interest expense
Deposits58,481 7,289 
Borrowed funds30,713 6,425 
Subordinated notes2,641 2,641 
Junior subordinated debentures issued capital trusts3,469 1,755 
Total interest expense95,304 18,110 
Net interest income133,487 150,736 
Credit loss expense (recovery)1,185 (1,747)
Net interest income after credit loss expense132,302 152,483 
Non–interest Income
Service charges on deposit accounts9,135 8,651 
Wire transfer fees345 477 
Interchange fees9,637 9,451 
Fiduciary activities3,728 4,111 
Gain (loss) on sale of investment securities(480)— 
Gain on sale of mortgage loans3,372 5,969 
Mortgage servicing income net of impairment1,984 4,163 
Increase in cash value of bank owned life insurance3,051 1,843 
Death benefit on bank owned life insurance— 644 
Other income1,675 1,468 
Total non–interest income32,447 36,777 
Non–interest expense
Salaries and employee benefits58,932 60,305 
Net occupancy expenses10,095 10,044 
Data processing8,684 7,683 
Professional fees1,873 1,149 
Outside services and consultants7,548 7,865 
Loan expense3,635 4,130 
FDIC insurance expense2,680 2,170 
Core deposit intangible amortization2,709 2,777 
Other losses543 928 
Other expenses10,255 10,439 
Total non–interest expense106,954 107,490 
Income before income taxes57,795 81,770 
Income tax expense4,599 9,527 
Net income$53,196 $72,243 
Basic earnings per share$1.22 $1.66 
Diluted earnings per share1.21 1.65 
16
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results

Use of Non–GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non–GAAP financial measures relating to net income, diluted earnings per share, pre–tax, pre–provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non–recurring and have excluded them. We believe that this shows the impact of such events as acquisition–related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. Horizon believes these non–GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to the purchase accounting impacts and one–time costs of acquisitions and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non–GAAP information identified herein and its most comparable GAAP measures.

Non–GAAP Reconciliation of Net Income
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Net income as reported$16,205 $18,763 $18,228 $21,165 $23,821 $53,196 $72,243 
Swap termination fee— (1,453)— — — (1,453)— 
Tax effect— 305 — — — 305 — 
Net income excluding swap termination fee16,205 17,615 18,228 21,165 23,821 52,048 72,243 
(Gain) / loss on sale of investment securities— (20)500 — — 480 — 
Tax effect— 4 (105)— — (101)— 
Net income excluding (gain) / loss on sale of investment securities16,205 17,599 18,623 21,165 23,821 52,427 72,243 
Death benefit on bank owned life insurance (“BOLI”)— — — — — — (644)
Net income excluding death benefit on BOLI16,205 17,599 18,623 21,165 23,821 52,427 71,599 
Adjusted net income$16,205 $17,599 $18,623 $21,165 $23,821 $52,427 $71,599 

17
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Non–GAAP Reconciliation of Diluted Earnings per Share
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Diluted earnings per share (“EPS”) as reported$0.37 $0.43 $0.42 $0.48 $0.55 $1.21 $1.65 
Swap termination fee— (0.03)— — — (0.03)— 
Tax effect— 0.01 — — — 0.01 — 
Diluted EPS excluding swap termination fee0.37 0.41 0.42 0.48 0.55 1.19 1.65 
(Gain) / loss on sale of investment securities— — 0.01 — — 0.01 — 
Tax effect— — — — — — — 
Diluted EPS excluding (gain) / loss on sale of investment securities0.37 0.41 0.43 0.48 0.55 1.20 1.65 
Death benefit on bank owned life insurance (“BOLI”)— — — — — — (0.01)
Diluted EPS excluding death benefit on BOLI0.37 0.41 0.43 0.48 0.55 1.20 1.64 
Adjusted diluted EPS$0.37 $0.41 $0.43 $0.48 $0.55 $1.20 $1.64 
Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Net Income
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Pre–tax income$17,489 $20,215 $20,091 $23,814 $25,834 $57,795 $81,770 
Credit loss expense (recovery)263 680 242 (69)(601)1,185 (1,747)
Pre–tax, pre–provision net income$17,752 $20,895 $20,333 $23,745 $25,233 $58,980 $80,023 
Pre–tax, pre–provision net income$17,752 $20,895 $20,333 $23,745 $25,233 $58,980 $80,023 
Swap termination fee— (1,453)— — — (1,453)— 
(Gain) / loss on sale of investment securities— (20)500 — — 480 — 
Death benefit on BOLI— — — — — — (644)
Adjusted pre–tax, pre–provision net income$17,752 $19,422 $20,833 $23,745 $25,233 $58,007 $79,379 

18
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Non–GAAP Reconciliation of Net Interest Margin
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Net interest income as reported$42,090 $46,160 $45,237 $48,782 $51,861 $133,487 $150,736 
Average interest earning assets7,286,611 7,212,640 7,201,266 7,091,980 7,056,208 7,233,818 6,939,643 
Net interest income as a percentage of average interest earning assets (“Net Interest Margin”)2.41 %2.69 %2.67 %2.85 %3.04 %2.59 %3.02 %
Net interest income as reported$42,090 $46,160 $45,237 $48,782 $51,861 $133,487 $150,736 
Acquisition–related purchase accounting adjustments (“PAUs”)(435)(651)(367)(431)(906)(1,453)(3,045)
Swap termination fee— (1,453)— — — (1,453)— 
Adjusted net interest income$41,655 $44,056 $44,870 $48,351 $50,955 $130,581 $147,691 
Adjusted net interest margin2.38 %2.57 %2.65 %2.83 %2.99 %2.53 %2.96 %

Non–GAAP Reconciliation of Tangible Stockholders’ Equity and Tangible Book Value per Share
(Dollars in Thousands, Unaudited)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Total stockholders’ equity$693,369 $709,243 $702,559 $677,375 $644,993 
Less: Intangible assets169,741 170,644 171,547 172,450 173,375 
Total tangible stockholders’ equity$523,628 $538,599 $531,012 $504,925 $471,618 
Common shares outstanding43,648,501 43,645,216 43,621,422 43,574,151 43,574,151 
Book value per common share$15.89 $16.25 $16.11 $15.55 $14.80 
Tangible book value per common share$12.00 $12.34 $12.17 $11.59 $10.82 

19
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Non–interest expense as reported$36,168 $36,262 $34,524 $35,711 $36,816 $106,954 $107,490 
Net interest income as reported42,090 46,160 45,237 48,782 51,861 133,487 150,736 
Non–interest income as reported$11,830 $10,997 $9,620 $10,674 $10,188 $32,447 $36,777 
Non–interest expense / (Net interest income + Non–interest income)
(“Efficiency Ratio”)		67.08 %63.44 %62.93 %60.06 %59.33 %64.46 %57.32 %
Non–interest expense as reported$36,168 $36,262 $34,524 $35,711 $36,816 $106,954 $107,490 
Net interest income as reported42,090 46,160 45,237 48,782 51,861 133,487 150,736 
Swap termination fee— (1,453)— — — (1,453)— 
Net interest income excluding swap termination fee42,090 44,707 45,237 48,782 51,861 132,034 150,736 
Non–interest income as reported11,830 10,997 9,620 10,674 10,188 32,447 36,777 
(Gain) / loss on sale of investment securities— (20)500 — — 480 — 
Death benefit on BOLI— — — — — — (644)
Non–interest income excluding (gain) / loss on sale of investment securities and death benefit on BOLI$11,830 $10,977 $10,120 $10,674 $10,188 $32,927 $36,133 
Adjusted efficiency ratio67.08 %65.12 %62.37 %60.06 %59.33 %64.84 %57.52 %

20
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Non–GAAP Reconciliation of Return on Average Assets
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Average assets$7,924,751 $7,840,026 $7,831,106 $7,718,366 $7,635,102 $7,865,446 $7,473,534 
Return on average assets (“ROAA”) as reported0.81 %0.96 %0.94 %1.09 %1.24 %0.90 %1.29 %
Swap termination fee— (0.07)— — — (0.02)— 
Tax effect— 0.02 — — — 0.01 — 
ROAA excluding swap termination fee0.81 0.91 0.94 1.09 1.24 0.89 1.29 
(Gain) / loss on sale of investment securities— — 0.03 — — 0.01 — 
Tax effect— — (0.01)— — — — 
ROAA excluding (gain) / loss on sale of investment securities0.81 0.91 0.96 1.09 1.24 0.90 1.29 
Death benefit on BOLI— — — — — — (0.01)
ROAA excluding death benefit on BOLI0.81 0.91 0.96 1.09 1.24 0.90 1.28 
Adjusted ROAA0.81 %0.91 %0.96 %1.09 %1.24 %0.90 %1.28 %

21
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Non–GAAP Reconciliation of Return on Average Common Equity
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Average common equity$715,485 $710,953 $693,472 $660,188 $680,376 $707,162 $691,529 
Return on average common equity (“ROACE”) as reported8.99 %10.59 %10.66 %12.72 %13.89 %10.06 %13.97 %
Swap termination fee— (0.82)— — — (0.27)— 
Tax effect— 0.17 — — — 0.06 — 
ROACE excluding swap termination fee8.99 9.94 10.66 12.72 13.89 9.85 13.97 
(Gain) / loss on sale of investment securities— (0.01)0.29 — — 0.09 — 
Tax effect— — (0.06)— — (0.02)— 
ROACE excluding (gain) / loss on sale of investment securities8.99 9.93 10.89 12.72 13.89 9.92 13.97 
Death benefit on BOLI— — — — — — (0.12)
ROACE excluding death benefit on BOLI8.99 9.93 10.89 12.72 13.89 9.92 13.85 
Adjusted ROACE8.99 %9.93 %10.89 %12.72 %13.89 %9.92 %13.85 %

22
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
Non–GAAP Reconciliation of Return on Average Tangible Equity
(Dollars in Thousands, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
Average common equity$715,485 $710,953 $693,472 $660,188 $680,376 $707,162 $691,529 
Less: Average intangible assets170,301 171,177 172,139 173,050 173,546 171,199 174,323 
Average tangible equity$545,184 $539,776 $521,333 $487,138 $506,830 $535,963 $517,206 
Return on average tangible equity (“ROATE”) as reported11.79 %13.94 %14.18 %17.24 %18.65 %13.27 %18.68 %
Swap termination fee— (1.08)— — — (0.36)— 
Tax effect— 0.23 — — — 0.08 — 
ROATE excluding swap termination fee11.79 13.09 14.18 17.24 18.65 12.99 18.68 
(Gain) / loss on sale of investment securities— (0.01)0.39 — — 0.12 — 
Tax effect— — (0.08)— — (0.03)— 
ROATE excluding (gain) / loss on sale of investment securities11.79 13.08 14.49 17.24 18.65 13.08 18.68 
Death benefit on BOLI— — — — — — (0.17)
ROATE excluding death benefit on BOLI11.79 13.08 14.49 17.24 18.65 13.08 18.51 
Adjusted ROATE11.79 %13.08 %14.49 %17.24 %18.65 %13.08 %18.51 %


Earnings Conference Call

As previously announced, Horizon will host a conference call to review its third quarter financial results and operating performance.

Participants may access the live conference call on October 26, 2023 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833–974–2379 from the United States, 866–450–4696 from Canada or 1–412–317–5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through November 2, 2023. The replay may be accessed by dialing 877–344–7529 from the United States, 855–669–9658 from Canada or 1–412–317–0088 from other international locations, and entering the access code 7722200.


23
Horizon Bancorp, Inc. Reports Third Quarter 2023 Results
About Horizon Bancorp, Inc.

Celebrating 150 years, Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $8.0 billion–asset commercial bank holding company for Horizon Bank, which serve customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon Bank’s retail offerings include prime residential, indirect auto, and other consumer lending to in–market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in–market business banking and treasury management services, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.
24
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® A NASDAQ Traded Company - Symbol HBNC INVESTOR PRESENTATION OCTOBER 25, 2023

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Forward-Looking Statements This presentation may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward–looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this presentation should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward–looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward–looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward–looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry, including the effects of recent failures of other financial institutions, liquidity levels, and responses by the Federal Reserve, Department of the Treasury, and the Federal Deposit Insurance Corporation to address these issues; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the ability of Horizon to remediate its material weaknesses in its internal control over financial reporting; continuing increases in inflation; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; economic conditions and their impact on Horizon and its customers, including local and global economic recovery from the pandemic; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; material changes outside the U.S. or in overseas relations, including changes in U.S. trade relations related to imposition of tariffs, Brexit, and the phase out of the London Interbank Offered Rate (“LIBOR”); the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law. Non-GAAP Measures Certain non-GAAP financial measures are presented herein. Horizon believes they are useful to investors and provide a greater understanding of Horizon’s business without giving effect to non-recurring costs and non-core items. For each non-GAAP financial measure, we have presented comparable GAAP measures and reconciliations of the non-GAAP measures to those GAAP measures in the Appendix to this presentation. Please see slides 25-30. Important Information 2

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 3 Mark E. Secor EVP & Chief Financial Officer • 35 Years of Banking and Public Accounting Experience • 15 Years with Horizon as CFO and EVP of Horizon Kathie A. DeRuiter EVP & Senior Operations Officer • 34 Years of Banking and Operational Experience • 23 Years as Senior Bank Operations Officer Todd A. Etzler EVP & Corporate Secretary & General Counsel • 32 Years of Corporate Legal Experience and 13 years of General Counsel Experience • 6 Years as General Counsel Seasoned Management Team Lynn M. Kerber EVP & Chief Commercial Banking Officer • 33 Years of Banking Experience • 6 Years with Horizon as Senior Commercial Credit Officer Noe S. Najera EVP, Senior Retail & Mortgage Lending Officer • 22 Years of Banking Experience • 8 Years with Horizon, 4 Years as SVP Retail Lending Thomas M. Prame President & Chief Executive Officer • 29 Years of Banking Experience • 21 Years in Executive Leadership Roles

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 4 3Q23 Highlights * 2Q23 results reflect favorable pre-tax impact of $1.45 million swap termination fee, or approximately $0.02/share after tax ** See Footnote Index and non-GAAP reconciliations in Appendix. ($000s except per share data) 3Q23 2Q23 Income Statement Net interest income $42,090 $46,160 NIM 2.41% 2.69%* Adjusted NIM** 2.38% 2.57% Non-interest income $11,830 $10,997 Non-interest expense $36,168 $36,262 Annualized non-interest exp. / avg. assets 1.81% 1.86% Pre-tax, pre-provision net income** $17,752 $20,895 Reported net income $16,205 $18,763 Diluted EPS $0.37 $0.43* Return on average assets 0.81% 0.96%* Return on average common equity 8.99% 10.59%* Return on average tangible equity** 11.79% 13.94%* Balance Sheet Total loans $4,361,830 $4,273,193 Total deposits $5,700,097 $5,709,332 Credit Quality NPA / total assets ratio 0.26% 0.30% Net charge-offs to avg. loans for the period 0.02% 0.01% Third Quarter Highlights • Earned solid net income of $16.2 million, or $0.37/share o Linked quarter EPS included ~$0.02 from swap termination • Total loans up 8.2% annualized driven by strong commercial lending results • Stable core deposits base consistent with Q2 results • Consumer & Commercial portfolios variation <1% • Public portfolio increased >1% • Low uninsured deposits < 20% of portfolio • Growth in non-interest income at double-digit annualized rates over linked quarter • Excellent credit metrics, reflective of conservative and sound approach to managing risk and active portfolio management • Continued disciplined operating model with 1.81% of non-interest expense/average assets, annualized, aligned with expectations

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 5 Major Brands Horizon’s markets are home to multi-national companies, flourishing ecosystems of suppliers, spin-offs and professional services firms, and thriving college towns. These regional economic engines include global leaders in medical devices, pharmaceuticals, agribusiness, automotive/mobility, alternative energy, and high- tech manufacturing, as well as world-renowned universities like Notre Dame, Purdue, Indiana, Michigan, Michigan State, and Grand Valley State. Most-recent-quarter-end balances for IN and MI, with loans excluding mortgage warehouse and purchased HELOCs Loans $2.3B Loans $1.8B Our Indiana & Michigan Markets Chicago Economically Attractive Horizon’s branches are located strategically in markets with attractive business environments, tax rates, housing affordability, infrastructure and quality of life. Our markets are stable and strong with reduced volatility compared to major metropolitan markets. Diverse Opportunities Horizon’s Commercial and Retail Banking offerings are complimented by well- developed Treasury Management, Wealth, Mortgage Banking platforms. Horizon’s core deposit franchise is grounded in the long tenure of its clients, significant market share, and its relationship based banking model. Deposits $1.8B Deposits $3.9B

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® • Commercial loan portfolio increased by ~$83.0MM, 13.1% annualized • Net funding of $97 million for Q3 compared to $128 million for linked quarter • Commercial pipeline at $145 million compared to $118 million at the end of linked quarter • YTD net charge-offs ~ 1 basis point • Average portfolio yield of 5.80% in the quarter o Average new production yield of 7.50% Diversified Commercial Loans By Geography & Mix 6 Northern Indiana, 13% Central Indiana, 31% Other, 4% Southwest Michigan, 17% Northern Michigan, 9% East Michigan, 7% West Michigan, 19% Geographic Dispersion Non- Owner Occupied Real Estate, 48% C&I, 25% Owner Occ. Real Estate, 23% Ag Loans, 2% Develop./Land, 1% Res. Spec. Homes, 1% Portfolio Composition Quarter Highlights Note: Data as of 9/30/23

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 1% 3% 3% 3% 3% 4% 6% 6% 6% 7% 10% Farm Land Mini Storage All Others Medical Office Lessors - Residential 1-4 Lessors Student Housing Motel Retail Office (except medical) Warehouse/Industrial Lessors - Residential Multi Note: Data as of 9/30/23. All percentages are of total commercial loans. 1% 1% 1% 1% 2% 2% 2% 2% 3% 3% 5% Wholesale Trade Professional & Technical Services Construction All Others Restaurants Leisure and Hospitality Manufacturing Retail Trade Real Estate Rental & Leasing Individuals and Other Services Health Care, Edu. Social Assist. 1% 1% 1% 1% 1% 1% 2% 2% 2% 3% 3% 3% 5% Agriculture Professional & Technical Services Restaurants Transportation & Warehousing Retail Trade All Others Real Estate Rental & Leasing Construction Government Manufacturing Health Care, Educational Social Assist. Individuals and Other Services Finance & Insurance 7 Non-Owner Occupied CRE – 51% of Total Commercial Loans ~$1.3 Billion Owner Occupied CRE – 23% of Total Commercial Loans ~$0.6 Billion C&I Loans – 26% of Total Commercial Loans ~$0.7 Billion Diversified Commercial Loans By Industry Commercial Loans - $2.589 Billion

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 8 Prime Consumer Loans Consumer Direct • Increased ~$64 million, consistent with plan • YTD net recovery ~ 1 basis points • Average portfolio yield of 8.05% in the quarter o Average new production yield of 8.96% Quarter Highlights Direct Auto, 2.2% Home Equity Term, 6.3% HELOCs, 46.3% RV & Boat, 2.5% Secured Other, 0.4% Unsecured Other, 0.4% Indirect Auto, 41.9% Total Consumer Outstanding $1.0B Period-End Weighted Average Portfolio Metrics Direct Consumer Indirect Auto Credit Score 746 728 Debt-to-Income 41% 28% Loan-to-value 73% 90% Note: Data as of 9/30/23 Indirect Auto • Decreased ~ $38MM, consistent with strategy • YTD net charge-offs ~ 31 basis points • Average portfolio yield of 3.25% in the quarter o Average new production yield of 9.51% • Short portfolio duration at 2.4 years provides flexibility for ALCO strategies

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 9 Prime Mortgage Loans • Mortgage portfolio size was stable, with new production primarily consisting of higher yielding jumbo loans • ~67% of YTD production is saleable • Results aligning with industry Q3: $59MM orig., $1.6M fee income Q2: $68MM orig., $1.0M fee income • YTD net charge-offs of 0 basis points • Consistent higher quality borrowers, significant capacity to pay and low LTV • Average portfolio yield of 4.23% in the quarter o Average new production yield of 7.63% Mortgage Portfolio Weighted Metrics Credit Score 757 Debt-to-Income 34% Loan-to-value 69% Jumbo, 49.9% Rental, 1.0% Conforming, 45.4% Construction, 3.7% Total Outstanding $675M Quarter Highlights Note: Data as of 9/30/23

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® $138 $285 $379 $274 $722 0.00% 0.01% 0.01% 0.01% 0.02% 3Q22 4Q22 1Q23 2Q23 3Q23 Net Charge Offs Commercial Resi Real Estate Consumer Total NCOs/Average Loans $ 0 0 0 s $19,158 $21,840 $19,797 $22,109 $19,448 0.48% 0.52% 0.47% 0.52% 0.45% 3Q22 4Q22 1Q23 2Q23 3Q23 Non-Performing Loans (period end) Commercial Resi Real Estate Consumer Total NPLs/Loans $ 0 0 0 s 10 CECL $51,369 $50,464 $49,526 $49,976 $49,699 1.27% 1.21% 1.17% 1.17% 1.14% 3Q22 4Q22 1Q23 2Q23 3Q23 ACL ACL/Loans Strong Asset Quality Metrics Allowance for Credit Losses (period end) $ 0 0 0 s 30-89 Days Delinquent (period end) $ 0 0 0 s $6,970 $10,709 $13,971 $10,913 $13,090 0.16% 0.25% 0.33% 0.26% 0.30% 3Q22 4Q22 1Q23 2Q23 3Q23 39 to 89 days delinquent Delinquencies/Loans

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 HBNC U.S. commercial banks¹ Net charge offs as a % of average loans 0.15% 0.50 0.47% 0.01% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 HBNC U.S. commercial banks¹ Nonperforming assets as % of assets 0.20% 0.39% 0.36% 0.30% Source: SNL Financial Note: Financial data as of June 30, 2023; ¹ Based on regulatory financials for all U.S. commercial banks as defined by SNL Financial banking industry aggregates Proven Credit Quality Through Cycles 11

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Note: Data as of 9/30/23 Seasoned, Core Deposit Base • Consumer: $9K avg. account balance 11 year avg. tenure • Commercial: $11K avg. account balance 10 year avg. tenure • Public: $880K avg. account balance 11 year avg. tenure 50% of Balances in Checking Accounts • Daily operating accounts of clients • Long tenured relationships of 11 years 82% of Balances Insured/Collateralized • Significant portion of deposits covered by FDIC, Collateralized or IntraFi • Additional coverage through Indiana Public Deposit Insurance Fund (PDIF) Granular and Tenured Deposits 56% 26% 18% FDIC Insured <$250K, Collateralized and/or Third-Party Insured (e.g., IntraFi and Indiana PDIF) 82% Total Deposits at 9/30/23 $5.7B 12

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® $1,538 $1,556 2Q23 3Q23 Public *The average cost of borrowings for 2Q23 includes the benefit of ~ $1.5 swap termination fee. Note: Data as of 9/30/23 13 Deposit Stability & Strength Maintain Key Relationships • Public Funds $18MM • Continued price competition • Larger in size, fluid environment • Balancing durations and cost Stability in Core Relationships • Cons/Comm Portfolio ($27MM) • Combined Changed (0.64%) • Consumer portfolio $4MM/0.17% • Commercial portfolio ($31MM)/(1.88%) • Migration to higher rate portfolios Borrowings • Flat linked quarter • Significant liquidity capacity • $72M in Fed Funds sold Checking Savings CD $2,520 $2,524 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2Q23 3Q23 Consumer $1,652 $1,621 2Q23 3Q23 Commercial $1,352 $1,356 2Q23 3Q23 Borrowings* Dollar amounts in thousands at period end Average Cost 0.80% 0.98% 0.98% 1.24% 2.69% 3.49% 3.08% 3.50%

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 14 Fee Income Rebuild Non-interest Income ($000s) $10,188 $10,674 $9,620 $10,997 $11,830 $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 3Q22 4Q22 1Q23 2Q23 3Q23 Service fees Fiduciary activities Mortgage related income All Other • Continuing to build consistent and sustainable fee income platform • 7.6% growth over linked quarter o Primarily driven by higher mortgage- related income and other fee-related income • 16.1% growth over year-ago period o Primarily driven by higher mortgage- related income and other fee-related income Quarter Highlights Note: Data as of 9/30/23

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 15 Hallmark Focus on Expense Management $36,816 $35,711 $34,524 $36,262 $36,168 1.91% 1.84% 1.79% 1.86% 1.81% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 3Q22 4Q22 1Q23 2Q23 3Q23 All Other Non-interest Expense Salaries & Employee Benefits Annualized Non-Interest Expense to Average Assets Non-interest Expense ($000s) • Lowered non-interest expenses from levels in linked and year-ago periods o Lower salaries & benefits more than offset increase in FDIC insurance expense o Other non-interest expense items remained relatively stable • Non-interest expense to average assets annualized o 1.81% for the quarter o 1.82% for YTD o Additional compensation costs expected from leasing team build out Quarter Highlights Note: Data as of 9/30/23

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Continued Focus on Pricing Discipline 16 4.22% 4.25% 4.38% 4.34% 4.10% 4.33% 4.61% 5.02% 5.44% 5.78% 5.86% 4.24% 4.17% 4.19% 4.19% 4.12% 4.31% 4.67% 5.05% 5.32% 5.49% 0.21% 0.17% 0.14% 0.11% 0.10% 0.11% 0.28% 0.71% 1.04% 1.35% 1.72% 0.27% 0.22% 0.18% 0.16% 0.14% 0.19% 0.36% 0.75% 1.24% 1.60% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Average Loan Yields and Deposit Costs HBNC Loan Yield Peer Median Loan Yield HBNC Cost of Deposits(1) Peer Median Cost of Deposits (1) See Footnote Index and non-GAAP reconciliations in Appendix. 389 bps 414 bps Peer medians for U.S. commercial banks listed on the Nasdaq or NYSE with assets of $5B-$10B at MRQ end, according to data from S&P Capital IQ Pro on September 19, 2023. HBNC Cost HBNC Yield

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Fed Agy CMO, 3% State and Muni, 51% Fed Agy MBS, 17% Private labeled MBS, 1% U.S. Treasury, 20% Corp, 8% Total Investments at 9/30/23 $2.8B 17 Investment portfolio cash flows are helping to fund higher yielding loans • Book yield of 2.21% • Effective duration of ~6.7 years at MRQ end o Available for Sale (AFS) portfolio ~5.6 years o Held to Maturity (HTM) portfolio ~7.8 years • Positive spread over cost of deposits • $26 million of cash flows during the quarter • Estimated $25 million of cash flows expected through the end of 2023, not including sales • Estimated $120 million of cash flows expected in 2024, not including sales High-Quality Investment Portfolio 3Q22 4Q22 1Q23 2Q23 3Q23 Scheduled Next Quarter* Scheduled Next 12 Months* Roll-off / Cash Flow ($000s) Sales $37,000 - $28,000 - $25,000 $65,000 $41,000 $24,000 $26,000 - $25,000 $120,000 Duration (years) 6.95 6.74 6.58 6.41 6.70 * Excludes securities sales

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 11.3% 12.0% 11.3% 11.6% 11.9% 12.1% 11.4% 11.4% 2020 2021 2022 3Q23 10.7% 9.2% 10.2% 10.0% 9.0% 8.9% 9.5% 9.4% 2020 2021 2022 3Q23 14.9% 15.4% 13.4% 14.6% 14.3% 14.2% 13.6% 13.8% 2020 2021 2022 3Q23 Peer Data Source: S&P Global Market Intelligence. TCE / TA (%) Leverage Ratio (%) Total RBC Ratio (%) 4.0% Adequate + Buffer 7.0% KBW Regional Bank Index Median - MRQ Capital Position Provides Flexibility 10.5% HBNC Ratio 9.1% 7.6% 6.6% 6.7% 8.6% 8.3% 7.2% 7.2% 2020 2021 2022 3Q23 CET1 Ratio (%) 18

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 19 Productive Use of Capital Long-standing Dividend • Investing to leverage capital through organic loan growth • Opportunistic acquisitions with focus on lease models • Stock buyback on pause until interest rates stabilize Deploying CapitalStrong Cash Position • 30+ years of uninterrupted quarterly cash dividend • Quarterly dividend increase of 6.3% to $0.16 per share in second quarter of 2022, resulting in tenth dividend increase in the last 11 years • As of September 30, 2023, implied annualized dividend yield of 6.0% • Targeted dividend payout ratio of 30-40% and aligned with capital retention strategy • Currently represents approximately 8 quarters of the current dividend plus fixed costs • Strong cash position provides significant flexibility in managing the bank’s balance sheet and capital while providing flexibility for opportunistic investments

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Total Loan Growth Annualized 8.2% 4-5% 6-7% Net Interest Margin 2.41% 2.33-2.38% 2.50-2.55% Net Interest Income $42.1 M $40-$42 M $174-$176 M Non-Interest Income $11.8 M $10-$11 M $43-$44 M Non-Interest Expense $36.2 M $35-$36 M $142-$143 M Annual Expenses to Average Assets 1.81% <1.85% <1.85% ROAA 0.81% 0.75-0.80% 0.85-0.90% ROAE 8.99% 8.50-9.00% 9.50-10.00% TCE / TA (period end) 6.7% 6.6-6.8% 6.6-6.8% Updated 2023 Expectations 3Q 2023 Actual 20 FY 2023 Expectation 4Q 2023 Expectation

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Very attractive Midwest markets Solid loan growth with low credit risk profile Tenured and stable deposit base with significant liquidity Disciplined operating culture Compelling value supported by commitment to dividend Prudent expense management results, 1.81% operating expenses/average assets year to date Historical credit metrics that have outperformed the market 21 Why Horizon? A High-Performing Operator in Growth Markets Stable, granular deposit base, average account tenure over 10 years Significant liquidity of $2.8 billion in availability; 82% deposits insured/collateralized Actively managing funding cost to create shareholder value Strategic branch distribution throughout key markets and university towns that offer a greater quality of life Desirable economic environment with significant investment in infrastructure, and major industries of manufacturing, healthcare, education and high tech Flourishing ecosystem of suppliers, professional service firms and vendor partners 84% P/TBV and 5.9x P/E (TTM) 6.3% dividend yield 30-year record of uninterrupted quarterly cash dividends to shareholders Promising loan growth of 6.4% annualized across a diverse lending platform and markets Continued opportunity to reinvest loan growth into higher yielding assets and expand interest income A proven history of excellent credit metrics: 2 basis points charge-offs, 1.14% allowance for credit losses at most-recent quarter end Price multiples as of 10/20/2023

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 22 Appendix

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Commercial, $2,589M, 59% Residential Mortgage, $675M, 15% Consumer, $1,028M, 24% Mortgage Warehouse, $66M, 2% Held For Sale, $3M, 0% 23 Gross Loans at 9/30/23 $4.4B Commercial Loans by Industry ($M) 9/30/23 Balance % of Commercial Portfolio % of Total Loan Portfolio Lessors – Residential Multi Family $256 9.9% 5.9% Health Care, Educational & Social 205 7.9% 4.7% Warehouse/Industrial 168 6.5% 3.9% Individual and Other Services 158 6.1% 3.6% Office (except medical) 158 6.1% 3.6% Retail 157 6.1% 3.6% Hotel 155 6.0% 3.6% Real Estate Rental & Leasing 135 5.2% 3.1% Manufacturing 127 4.9% 2.9% Finance & Insurance 124 4.8% 2.8% Lessors – Student Housing 109 4.2% 2.5% Construction 90 3.5% 2.1% Retail Trade 81 3.1% 1.9% Lessors – Residential 1–4 Family 73 2.8% 1.7% Medical Office 69 2.7% 1.6% Restaurants 64 2.5% 1.5% Mini Storage 64 2.5% 1.5% Government 62 2.4% 1.4% Leisure and Hospitality 48 1.9% 1.1% Professional & Technical Services 43 1.7% 1.0% Transportation & Warehousing 37 1.4% 0.8% Farm Land 34 1.2% 0.8% Wholesale Trade 33 1.3% 0.7% Agriculture 22 0.8% 0.5% Other 117 4.5% 2.6% Total $2,589 100.0% 59.4% Diversified & Granular Loan Portfolio

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 24 Slide 4 • Adjusted net interest income and adjusted net interest margin exclude acquisition-related purchase accounting adjustments and swap termination fees. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Pre-tax, pre-provision income excludes income tax expense and credit loss expense. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Return on average tangible equity excludes average intangible assets from average equity. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 16 • Average cost of average total deposits includes average balances of non-interest bearing deposits. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slides 25-30 Use of Non-GAAP Financial Measures • Certain information set forth in the presentation materials refers to financial measures determined by methods other than in accordance with GAAP. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business without giving effect to purchase accounting impacts, one-time acquisition and other non-recurring costs and non-core items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. Footnote Index

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 25 Footnote Index September 30, June 30, March 31, December 31, September 30, 2023 2023 2023 2022 2022 Net interest income as reported 42,090$ 46,160$ 45,237$ 48,782$ 51,861$ Average interest earning assets 7,286,611 7,212,640 7,201,266 7,091,980 7,056,208 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 2.41% 2.69% 2.67% 2.85% 3.04% Net interest income as reported 42,090$ 46,160$ 45,237$ 48,782$ 51,861$ Acquisition-related purchase accounting adjustments ("PAU") (435) (651) (367) (431) (906) Swap termination fee - (1,453) - - - Adjusted net interest income 41,655$ 44,056$ 44,870$ 48,351$ 50,955$ Adjusted net interest margin 2.38% 2.57% 2.65% 2.83% 2.99% Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands, Unaudited) Three Months Ended

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 26 Footnote Index September 30, June 30, March 31, December 31, September 30, 2023 2023 2023 2022 2022 Pre-tax income 17,489$ 20,215$ 20,091$ 23,814$ 25,834$ Provision for credit losses 263 680 242 (69) (601) Pre-tax, pre-provision net income 17,752$ 20,895$ 20,333$ 23,745$ 25,233$ Pre-tax, pre-provision net income 17,752$ 20,895$ 20,333$ 23,745$ 25,233$ Swap termination fee - (1,453) (Gain)/loss on sale of investment securities - (20) 500 - - Death benefit on bank owned life insurance - - - - - Adjusted pre-tax, pre-provision net income 17,752$ 19,422$ 20,833$ 23,745$ 25,233$ Average common equity 715,485$ 710,953$ 693,472$ 660,188$ 680,376$ Unadjusted pre-tax, pre-provision ROACE 9.84% 11.79% 11.89% 14.27% 14.71% Adjusted pre-tax, pre-provision ROACE 9.84% 10.96% 12.18% 14.27% 14.71% Non-GAAP Reconciliation of Pre-Tax, Pre-Provision Net Income (Dollars in Thousands, Unaudited) Three Months Ended

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 27 Footnote Index September 30, June 30, March 31, December 31, September 30, 2023 2023 2023 2022 2022 Average common equity 715,485$ 710,953$ 693,472$ 660,188$ 680,376$ Less: Average intangible assets 170,301 171,177 172,139 173,050 173,546 Average tangible equity 545,184$ 539,776$ 521,333$ 487,138$ 506,830$ Return on average tangible equity ("ROATE") as reported 11.79% 13.94% 14.18% 17.24% 18.65% Swap termination fee - (1.08) - - - Tax effect - 0.23 - - - ROATE excluding swap termination fee 11.79 13.09 14.18 17.24 18.65 (Gain)/loss on sale of investment securities - (0.01) 0.39 - - Tax effect - - (0.08) - - ROATE excluding (gain)/loss on sale of investment securities 11.79 13.08 14.49 17.24 18.65 Death benefit on bank owned life insurance ("BOLI") - - - - - ROATE excluding death benefit on BOLI 11.79 13.08 14.49 17.24 18.65 Adjusted ROATE 11.79% 13.08% 14.49% 17.24% 18.65% Non-GAAP Reconciliation of Return on Average Tangible Equity (Dollars in Thousands, Unaudited) Three Months Ended

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 28 Footnote Index September 30, June 30, March 31, 2023 2023 2023 Total deposit interest expense as reported 24,704$ 18,958$ 14,819$ Average interest bearing deposits 4,538,698 4,445,074 4,502,199 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 2.16% 1.71% 1.33% Average interest bearing deposits 4,538,698 4,445,074 4,502,199 Average non-interest bearing deposits 1,159,241 1,186,520 1,255,697 Average total deposits 5,697,939$ 5,631,594$ 5,757,896$ Annualized deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 1.72% 1.35% 1.04% Non-GAAP Reconciliation of Cost of Deposits (Dollars in Thousands, Unaudited) Three Months Ended

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 29 Footnote Index December 31, September 30, June 30, March 31, 2022 2022 2022 2022 Total deposit interest expense as reported 10,520$ 4,116$ 1,677$ 1,496$ Average interest bearing deposits 4,555,887 4,478,741 4,540,959 4,478,621 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 0.92% 0.36% 0.15% 0.14% Average interest bearing deposits 4,555,887 4,478,741 4,540,959 4,478,621 Average non-interest bearing deposits 1,321,139 1,351,857 1,335,779 1,322,781 Average total deposits 5,877,026$ 5,830,598$ 5,876,738$ 5,801,402$ Annualized deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 0.71% 0.28% 0.11% 0.10% Three Months Ended Non-GAAP Reconciliation of Cost of Deposits (Dollars in Thousands, Unaudited)

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 30 Footnote Index December 31, September 30, June 30, March 31, 2021 2021 2021 2021 Total deposit interest expense as reported 1,663$ 1,808$ 2,053$ 2,343$ Average interest bearing deposits 4,543,989 3,831,632 3,680,796 3,524,103 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 0.15% 0.19% 0.22% 0.27% Average interest bearing deposits 4,543,989 3,831,632 3,680,796 3,524,103 Average non-interest bearing deposits 1,366,621 1,180,890 1,139,068 1,063,268 Average total deposits 5,910,610$ 5,012,522$ 4,819,864$ 4,587,371$ Annualized deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 0.11% 0.14% 0.17% 0.21% Three Months Ended Non-GAAP Reconciliation of Cost of Deposits (Dollars in Thousands, Unaudited)

 
E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Investor Relations Contact 31 Mark E. Secor Executive Vice President and Chief Financial Officer Horizon Bancorp, Inc. 515 Franklin Street Michigan City, IN 46360 219-873–2611 Investor.HorizonBank.com

 
v3.23.3
Cover Page Cover Page
Oct. 25, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 25, 2023
Entity File Number 000-10792
Entity Registrant Name HORIZON BANCORP, INC.
Entity Central Index Key 0000706129
Amendment Flag false
Title of 12(b) Security Common stock, no par value
Entity Incorporation, State or Country Code IN
Entity Tax Identification Number 35-1562417
Trading Symbol HBNC
Security Exchange Name NASDAQ
Entity Address, Address Line One 515 Franklin Street
Entity Address, City or Town Michigan City
Entity Address, State or Province IN
Entity Address, Postal Zip Code 46360
City Area Code 219
Local Phone Number 879-0211
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
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