hbnc-20230426
0000706129false00007061292023-04-262023-04-26

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): April 26, 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 April 26, 2023, Horizon Bancorp, Inc. (the “Company”) issued a press release announcing earnings and other financial results for the three–month period ended March 31, 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, April 27, 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:April 26, 2023HORIZON BANCORP, INC.
By:/s/ Mark E. Secor
Mark E. Secor,
Executive Vice President & Chief Financial Officer



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Document

http://api.rkd.refinitiv.com/api/FilingsRetrieval3/.73366926.0000706129-23-000079horizonbancorpinc876_sm-10.jpg.ashx
Contact:Mark E. Secor
Chief Financial Officer
Phone:
(219) 873–2611
Fax:
(219) 874–9280
Date:April 26, 2023

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

Michigan City, Indiana, April 26, 2023 (GLOBE NEWSWIRE) – (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”) announced its unaudited financial results for the three months ended March 31, 2023.

“Horizon Bank is proud to announce reaching a significant new milestone of our 150th anniversary of continuous banking operations. We have planned celebrations to honor this occasion throughout the year and, as we like to say, we are 150 years strong!” Chairman and Chief Executive Officer Craig M. Dwight said.

“Our enduring relationships with in–market clients and our advisors' focus on serving local businesses, consumers and communities are reflected in Horizon's stable deposits, growing loans and low credit costs in the first quarter,” Mr. Dwight continued. “Our organization's long–standing 150 year commitment to operational excellence and effective technology implementation was also evident in Horizon's first quarter results, including meaningful non–interest expense reductions and earnings per share of $0.42. Given our strong depositor relationships and lending opportunities in attractive Midwest markets, ample sources of liquidity, active balance sheet management, and talented advisors, we believe Horizon is very well positioned for continued success for 2023 and beyond."

First Quarter 2023 Highlights

•Deposits totaled $5.70 billion at period end, declining $155.8 million during the quarter, primarily due to a $122.2 million reduction in balances by municipal and other public depositors that have otherwise largely maintained their banking relationship with Horizon.

•Consumer and commercial deposits totaled $4.28 billion at period end, declining just $33.6 million during the quarter.

•75% of total deposits at period end were FDIC insured, collateralized, or third–party insured, and the average tenure of all deposit accounts with Horizon exceeded 10 years.

•The average deposit account balance at period end was less than $25,000 for consumer and commercial depositors and less than $195,000 for all accounts including those of large public depositors.

•Horizon's loan–to–deposit ratio was 74.5% at period end, as total loans increased by an annualized rate of 8.3% year–to–date and a rate of 2.1% quarter over quarter, fueled by growth in commercial, consumer and residential balances.

•Asset quality remained solid with total loan delinquency at 0.33% of total loans and net charge–offs to average loans of 0.01% during the quarter.

•Non–interest expense of $34.5 million in the first quarter declined 3.3% from the linked quarter and 2.1% from the prior year period. Non–interest expense in the first quarter represented 1.79% of average assets on an annualized basis, improving from 1.84%, in the linked quarter and 1.95% in the prior year period.

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Horizon Bancorp, Inc. Reports First Quarter 2023 Results
•Net income totaled $18.2 million, compared to $21.2 million in the fourth quarter of 2022 and $23.6 million in the prior year period. Diluted earnings per share (“EPS”) of $0.42 compared to $0.48 for the fourth quarter of 2022 and $0.54 for the first quarter of 2022.

•Deposit betas increased to 51% on total interest bearing deposits in the first quarter compared to a 32% deposit beta during the previous quarter.

•During the first quarter of 2023, unrealized losses on available for sale investments declined to $121.5 million compared to unrealized losses of $140.1 million at December 31, 2022. As a result our tangible capital ratio increased from 6.56% at December 31, 2022 to 6.87% at March 31, 2023.

•Horizon's book value per share and tangible book value per share increased to $16.11 and $12.17 compared to $15.55 and $11.59 in the linked quarter and $15.55 and $11.54 in the first quarter of 2022.

•The Bank’s capital position was still robust with leverage and risk based capital ratios of 8.86% and 13.15%, respectively.

•Horizon's annualized dividend yield was 5.79% as of March 31, 2023.

•On January 17, 2023, Horizon's Board of Directors approved the appointment of Thomas M. Prame to serve as the Chief Executive Officer of both Horizon and Horizon Bank (the “Bank”), effective June 1, 2023. Craig M. Dwight will retain the title of Chief Executive Officer until June 1, 2023 and retire as an employee from Horizon and the Bank effective July 3, 2023. Mr. Dwight will continue as the Chairman of the Board of Directors of both Horizon and the Bank.

Summary
For the Three Months Ended
March 31,December 31,March 31,
Net Interest Income and Net Interest Margin202320222022
Net interest income$45,237 $48,782 $46,831 
Net interest margin2.67 %2.85 %2.90 %
Adjusted net interest margin2.65 %2.83 %2.85 %
For the Three Months Ended
March 31,December 31,March 31,
Asset Yields and Funding Costs202320222022
Interest earning assets4.17 %3.88 %3.13 %
Interest bearing liabilities1.85 %1.29 %0.30 %
For the Three Months Ended
Non-interest Income and March 31,December 31,March 31,
Mortgage Banking Income202320222022
Total non–interest income
$9,620 $10,674 $14,155 
Gain on sale of mortgage loans785 1,196 2,027 
Mortgage servicing income net of impairment713 637 3,489 
For the Three Months Ended
March 31,December 31,March 31,
Non-interest Expense202320222022
Total non–interest expense
$34,524 $35,711 $35,270 
Annualized non–interest expense to average assets
1.79 %1.84 %1.95 %
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Horizon Bancorp, Inc. Reports First Quarter 2023 Results
For the Three Months Ended
March 31,December 31,March 31,
Credit Quality202320222022
Allowance for credit losses to total loans1.17 %1.21 %1.41 %
Non–performing loans to total loans
0.47 %0.52 %0.54 %
Percent of net charge–offs to average loans outstanding for the period
0.01 %0.01 %0.00 %
March 31,Net ReserveDecember 31,
Allowance for Credit Losses20231Q232022
Commercial$31,156 $(1,289)$32,445 
Retail Mortgage4,447 (1,130)5,577 
Warehouse798 (222)1,020 
Consumer13,125 1,703 11,422 
Allowance for Credit Losses (“ACL”)$49,526 $(938)$50,464 
ACL / Total Loans1.17 %1.21 %
Acquired Loan Discount (“ALD”)$6,158 $(121)$6,279 

“Horizon's first quarter profitability metrics included net income of $18.2 million, return on average assets of 0.94% and return on average tangible equity of 14.18%, which were impacted by the effects of industry wide competition for deposits and the rising interest rate environment,” Mr. Dwight said. “Looking ahead, we believe Horizon will continue to benefit from new loan originations replacing lower–yielding payoffs and paydowns, our liquidity position and prudent deposit pricing, continued expense management discipline, relatively low credit costs, and active management of our investment portfolio.”

Income Statement Highlights

Net income for the first quarter of 2023 was $18.2 million, or $0.42 diluted earnings per share, compared to $21.2 million, or $0.48, for the linked quarter and $23.6 million, or $0.54, for the prior year period.

The change in net income for the first quarter of 2023 when compared to the fourth quarter of 2022 reflects a decrease in non–interest expense of $1.2 million and lower income tax expense of $786,000, offset by a decrease in net interest income of $3.5 million, lower non–interest income of $1.1 million, which included a $500,000 loss on the sale of approximately $64.0 million of investment securities, and an increase in credit loss expense of $311,000.
Non–interest expense of $34.5 million in the first quarter of 2023 reflected a $1.3 million decrease in salaries and employee benefits, a $268,000 decrease in outside services and consultants, a $215,000 decrease in data processing expense and a $163,000 decrease in loan expense, offset by a $369,000 increase in other expense from the linked quarter.

Net income for the first quarter of 2023 compared to the same prior year period reflects a decrease in non–interest income of $4.5 million, a decrease in net interest income of $1.6 million, and an increase in credit loss expense of $1.6 million. These results are offset by a decrease in income tax expense of $1.7 million and a decrease in non–interest expense of $746,000.

Net Interest Margin

Horizon’s net interest margin was 2.67% for the first quarter of 2023 compared to 2.85% for the fourth quarter of 2022. The decrease in net interest margin reflects an increase in the cost of interest bearing liabilities of 56 basis points, offset by an increase in the yield on interest earning assets of 29 basis points. Additionally, interest income from acquisition–related purchase accounting adjustments was $64,000 lower during the first quarter of 2023 when compared to the fourth quarter of 2022.

Net interest margin was 2.67% for the first quarter of 2023 compared to 2.90% for the first quarter of 2022. The decrease in net interest margin reflects an increase in the cost of interest bearing liabilities of 155 basis points, offset by an increase in the yield on interest earning assets of 104 basis points. Additionally, interest income from acquisition–related purchase accounting adjustments was $549,000 lower during the first quarter of 2023 when compared to the first quarter of 2022.

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Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Net interest margin, excluding acquisition–related purchase accounting adjustments (“adjusted net interest margin”), was 2.65% for the first quarter of 2023, compared to 2.83% for the linked quarter and 2.85% for the first quarter of 2022. Interest income from acquisition–related purchase accounting adjustments was $367,000, $431,000 and $916,000 for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively. (See the “Non–GAAP Reconciliation of Net Interest Margin” table below).

Lending Activity

Total loan balances and loans held for sale increased to $4.25 billion on March 31, 2023 compared to $4.16 billion on December 31, 2022. During the three months ended March 31, 2023, commercial loans increased $38.0 million, consumer loans increased $58.3 million, and residential mortgage loans increased $9.2 million, offset by decreases in mortgage warehouse loans of $16.6 million and loans held for sale of $3.4 million.

Loan Growth by Type
(Dollars in Thousands, Unaudited)
March 31,December 31,QTDQTDAnnualized
20232022$ Change% Change% Change
Commercial$2,505,459 $2,467,422 $38,037 1.5%6.3%
Residential mortgage662,459 653,292 9,167 1.4%5.7%
Consumer1,026,076 967,755 58,321 6.0%24.4%
Subtotal4,193,994 4,088,469 105,525 2.6%10.5%
Loans held for sale2,409 5,807 (3,398)(58.5)%(237.3)%
Mortgage warehouse52,957 69,529 (16,572)(23.8)%(96.7)%
Total loans and loans held for sale$4,249,360 $4,163,805 $85,555 2.1%8.3%
Deposit Activity

Total deposit balances of $5.70 billion on March 31, 2023 declined 2.66% compared to $5.86 billion on December 31, 2022.

Deposit Growth by Type
(Dollars in Thousands, Unaudited)
March 31,December 31,QTDQTDAnnualized
20232022$ Change% Change% Change
Non–interest bearing$1,231,845 $1,277,768 $(45,923)(3.6)%(14.6)%
Interest bearing3,402,525 3,582,891 (180,366)(5.0)%(20.4)%
Time deposits1,067,575 997,115 70,460 7.1%28.7%
Total deposits$5,701,945 $5,857,774 $(155,829)(2.7)%(10.8)%



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Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Expense Management
Three Months Ended
March 31,December 31,QTDQTD
20232022$ Change% Change
Non–interest Expense
Salaries and employee benefits$18,712 $19,978 $(1,266)(6.3)%
Net occupancy expenses3,563 3,279 284 8.7%
Data processing2,669 2,884 (215)(7.5)%
Professional fees533 694 (161)(23.2)%
Outside services and consultants2,717 2,985 (268)(9.0)%
Loan expense1,118 1,281 (163)(12.7)%
FDIC insurance expense540 388 152 39.2%
Core deposit intangible amortization903 925 (22)(2.4)%
Other losses221 118 103 87.3%
Other expense3,548 3,179 369 11.6%
Total non–interest expense$34,524 $35,711 $(1,187)(3.4)%
Annualized non–interest expense to average assets1.79 %1.84 %

Total non–interest expense was $1.2 million lower in the first quarter of 2023 when compared to the fourth quarter of 2022. The decrease in expenses was primarily due to a decrease in salaries and employee benefits of $1.3 million from lower salary and incentive compensation expense, a decrease in outside services and consultants expense of $268,000 and a decrease in data processing expense of $215,000, offset by an increase in other expense of $369,000 and net occupancy expenses of $284,000.

Three Months Ended
March 31,March 31,QTDQTD
20232022$ Change% Change
Non–interest Expense
Salaries and employee benefits$18,712 $19,735 $(1,023)(5.2)%
Net occupancy expenses3,563 3,561 2 0.1%
Data processing2,669 2,537 132 5.2%
Professional fees533 314 219 69.7%
Outside services and consultants2,717 2,525 192 7.6%
Loan expense1,118 1,205 (87)(7.2)%
FDIC insurance expense540 725 (185)(25.5)%
Core deposit intangible amortization903 926 (23)(2.5)%
Other losses221 168 53 31.5%
Other expense3,548 3,574 (26)(0.7)%
Total non–interest expense$34,524 $35,270 $(746)(2.1)%
Annualized non–interest expense to average assets1.79 %1.95 %

Total non–interest expense was $746,000 lower in the first quarter of 2023 when compared to the first quarter of 2022 primarily due to an decrease in salaries and incentive compensation expense of $1.0 million and a decrease in FDIC insurance expense of $185,000, offset by an increase in professional fees of $219,000 and outside services and consultants expense of $192,000.
Annualized non–interest expense as a percent of average assets was 1.79%, 1.84% and 1.95% for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively.
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Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Income tax expense totaled $1.9 million for the first quarter of 2023, a decrease of $786,000 when compared to the fourth quarter of 2022 and a decrease of $1.7 million when compared to the first quarter of 2022.

Capital

The capital resources of the Company and the Bank exceeded regulatory capital ratios for “well capitalized” banks at March 31, 2023. Stockholders’ equity totaled $702.6 million at March 31, 2023 and the ratio of average stockholders’ equity to average assets was 8.86% for the three months ended March 31, 2023.

Tangible book value, which excludes intangible assets from total equity, per common share (“TBVPS”) increased $0.58 during the three months ended March 31, 2023 to $12.17.


The following table presents the actual regulatory capital dollar amounts and ratios of the Company and the Bank as of March 31, 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$791,701 13.97 %$453,270 8.00 %$594,917 10.50 %N/AN/A
Bank736,730 13.15 %448,323 8.00 %588,425 10.50 %$560,404 10.00 %
Tier 1 capital (to risk–weighted assets)
Consolidated742,175 13.10 %339,952 6.00 %481,599 8.50 %N/AN/A
Bank687,204 12.26 %336,243 6.00 %476,344 8.50 %448,323 8.00 %
Common equity tier 1 capital (to risk–weighted assets)
Consolidated621,647 10.97 %254,964 4.50 %396,611 7.00 %N/AN/A
Bank687,241 12.26 %252,182 4.50 %392,283 7.00 %364,263 6.50 %
Tier 1 capital (to average assets)
Consolidated742,175 10.06 %295,058 4.00 %295,058 4.00 %N/AN/A
Bank687,204 8.86 %310,127 4.00 %310,127 4.00 %387,658 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 March 31, 2023, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $1.65 billion in unused credit lines with various money center banks, including the FHLB and the Federal Reserve Bank. The Bank had approximately $666.3 million of unpledged investment securities on March 31, 2023.





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Horizon Bancorp, Inc. Reports First 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; continuing risks and uncertainties relating to the COVID–19 pandemic and government responses thereto; 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 First Quarter 2023 Results
Financial Highlights
(Dollars in Thousands, Unaudited)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Balance sheet:
Total assets$7,897,995 $7,872,518 $7,718,695 $7,640,936 $7,420,328 
Interest earning deposits & federal funds sold30,221 12,233 7,302 5,646 20,827 
Interest earning time deposits3,098 2,812 2,814 3,799 4,046 
Investment securities2,958,978 3,020,306 3,017,191 3,093,792 3,118,641 
Commercial loans2,505,459 2,467,422 2,403,743 2,363,991 2,259,327 
Mortgage warehouse loans52,957 69,529 73,690 116,488 105,118 
Residential mortgage loans662,459 653,292 634,901 608,582 593,372 
Consumer loans1,026,076 967,755 919,198 866,819 768,854 
Total loans4,246,951 4,157,998 4,031,532 3,955,880 3,726,671 
Earning assets7,273,921 7,225,833 7,087,368 7,088,737 6,898,208 
Non–interest bearing deposit accounts1,231,845 1,277,768 1,315,155 1,328,213 1,325,570 
Interest bearing transaction accounts3,402,525 3,582,891 3,736,798 3,760,890 3,782,644 
Time deposits1,067,575 997,115 778,885 756,482 743,283 
Total deposits5,701,945 5,857,774 5,830,838 5,845,585 5,851,497 
Borrowings1,311,927 1,142,949 1,048,091 959,222 728,664 
Subordinated notes58,933 58,896 58,860 58,823 58,786 
Junior subordinated debentures issued to capital trusts57,087 57,027 56,966 56,907 56,850 
Total stockholders’ equity702,559 677,375 644,993 657,865 677,450 

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Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Income statement:
Net interest income$45,237 $48,782 $53,395 $53,008 $48,171 
Credit loss expense (recovery)242 (69)(601)240 (1,386)
Non–interest income9,620 10,674 10,188 12,434 14,155 
Non–interest expense34,524 35,711 38,350 36,368 36,610 
Income tax expense1,863 2,649 2,013 3,975 3,539 
Net income$18,228 $21,165 $23,821 $24,859 $23,563 
Per share data:
Basic earnings per share$0.42 $0.49 $0.55 $0.57 $0.54 
Diluted earnings per share0.42 0.48 0.55 0.57 0.54 
Cash dividends declared per common share0.16 0.16 0.16 0.16 0.15 
Book value per common share16.11 15.55 14.80 15.10 15.55 
Tangible book value per common share12.17 11.59 10.82 11.11 11.54 
Market value – high16.32 20.00 20.59 19.21 23.54 
Market value – low$10.31 $14.51 $16.74 $16.72 $18.67 
Weighted average shares outstanding – Basis43,583,554 43,574,151 43,573,370 43,572,796 43,554,713 
Weighted average shares outstanding – Diluted43,744,721 43,667,953 43,703,793 43,684,691 43,734,556 
Key ratios:
Return on average assets0.94 %1.09 %1.24 %1.33 %1.31 %
Return on average common stockholders’ equity10.66 12.72 13.89 14.72 13.34 
Net interest margin2.67 2.85 3.04 3.13 2.90 
Allowance for credit losses to total loans1.17 1.21 1.27 1.32 1.41 
Average equity to average assets8.86 8.55 8.91 9.06 9.79 
Efficiency ratio62.93 60.06 59.33 54.91 57.83 
Annualized non–interest expense to average assets1.74 1.84 1.91 1.90 1.95 
Bank only capital ratios:
Tier 1 capital to average assets8.86 8.89 8.84 8.85 8.83 
Tier 1 capital to risk weighted assets12.26 12.72 12.74 12.87 13.23 
Total capital to risk weighted assets13.15 13.59 13.65 13.83 14.25 


9
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Financial Highlights
(Dollars in Thousands Except Ratios, Unaudited)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Loan data:
Substandard loans$49,804 $56,194 $57,932 $59,377 $57,928 
30 to 89 days delinquent13,971 10,709 6,970 6,739 6,358 
Non–performing loans:
90 days and greater delinquent – accruing interest137 92 193 210 107 
Trouble debt restructures – accruing interest— 2,570 2,529 2,535 2,372 
Trouble debt restructures – non–accrual— 1,548 1,665 1,345 1,501 
Non–accrual loans19,660 17,630 14,771 16,116 16,133 
Total non–performing loans$19,797 $21,840 $19,158 $20,206 $20,113 
Non–performing loans to total loans0.47 %0.52 %0.47 %0.51 %0.54 %

Allocation of the Allowance for Credit Losses
(Dollars in Thousands, Unaudited)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Commercial $31,156 $32,445 $33,806 $34,802 $37,789 
Residential mortgage4,447 5,577 5,137 4,422 4,351 
Mortgage warehouse798 1,020 1,024 1,067 1,055 
Consumer13,125 11,422 11,402 12,059 9,313 
Total$49,526 $50,464 $51,369 $52,350 $52,508 
Net Charge–offs (Recoveries)
(Dollars in Thousands Except Ratios, Unaudited)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Commercial $104 $(94)$51 $(75)$38 
Residential mortgage(6)(8)(75)40 (10)
Mortgage warehouse— — — — — 
Consumer281 387 162 319 108 
Total$379 $285 $138 $284 $136 
Percent of net charge–offs (recoveries) to average loans outstanding for the period0.01 %0.01 %0.00 %0.01 %0.00 %
10
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Total Non–performing Loans
(Dollars in Thousands Except Ratios, Unaudited)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Commercial $8,523 $9,330 $7,199 $8,008 $7,844 
Residential mortgage6,926 8,123 8,047 8,469 8,584 
Mortgage warehouse— — — — — 
Consumer4,348 4,387 3,912 3,729 3,685 
Total$19,797 $21,840 $19,158 $20,206 $20,113 
Non–performing loans to total loans0.47 %0.52 %0.47 %0.51 %0.54 %
Other Real Estate Owned and Repossessed Assets
(Dollars in Thousands, Unaudited)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Commercial $1,567 $1,881 $3,206 $1,414 $2,245 
Residential mortgage203 107 22 — 170 
Mortgage warehouse— — — — — 
Consumer78 152 14 58 5 
Total$1,848 $2,140 $3,242 $1,472 $2,420 
11
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Average Balance Sheets
(Dollars in Thousands, Unaudited)
Three Months EndedThree Months Ended
March 31, 2023March 31, 2022
Average
Balance		InterestAverage
Rate		Average
Balance		InterestAverage
Rate
Assets
Interest earning assets
Federal funds sold$7,767 $83 4.33 %$237,605 $91 0.16 %
Interest earning deposits8,780 70 3.23 %20,673 24 0.47 %
Investment securities – taxable1,727,369 8,725 2.05 %1,646,525 7,391 1.82 %
Investment securities – non–taxable (1)
1,314,129 7,556 2.95 %1,279,082 6,697 2.69 %
Loans receivable (2) (3)
4,143,221 55,364 5.44 %3,630,871 36,539 4.10 %
Total interest earning assets7,201,266 71,798 4.17 %6,814,756 50,742 3.13 %
Non–interest earning assets
Cash and due from banks103,563 104,676 
Allowance for credit losses(50,337)(54,307)
Other assets576,614 454,550 
Total average assets$7,831,106 $7,319,675 
Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits$4,502,199 $14,819 1.33 %$4,478,621 $1,496 0.14 %
Borrowings1,053,317 9,268 3.57 %503,846 1,043 0.84 %
Repurchase agreements138,749 503 1.47 %139,742 37 0.11 %
Subordinated notes58,910 880 6.06 %58,763 880 6.07 %
Junior subordinated debentures issued to capital trusts57,048 1,091 7.76 %56,807 455 3.25 %
Total interest bearing liabilities5,810,223 26,561 1.85 %5,237,779 3,911 0.30 %
Non–interest bearing liabilities
Demand deposits1,255,697 1,322,781 
Accrued interest payable and other liabilities71,714 42,774 
Stockholders’ equity693,472 716,341 
Total average liabilities and stockholders’ equity$7,831,106 $7,319,675 
Net interest income / spread$45,237 2.32 %$46,831 2.83 %
Net interest income as a percent of average interest earning assets (1)
2.67 %2.90 %
(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 First Quarter 2023 Results
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
March 31,
2023		December 31,
2022
(Unaudited)
Assets
Cash and due from banks$134,722 $123,505 
Interest earning time deposits3,098 2,812 
Investment securities, available for sale943,441 997,558 
Investment securities, held to maturity (fair value $1,709,392 and $1,681,309)
2,015,537 2,022,748 
Loans held for sale2,409 5,807 
Loans, net of allowance for credit losses of $49,526 and $50,464
4,197,425 4,107,534 
Premises and equipment, net91,814 92,677 
Federal Home Loan Bank stock32,264 26,677 
Goodwill155,211 155,211 
Other intangible assets16,336 17,239 
Interest receivable36,428 35,294 
Cash value of life insurance147,156 146,175 
Other assets122,154 139,281 
Total assets$7,897,995 $7,872,518 
Liabilities
Deposits
Non–interest bearing$1,231,845 $1,277,768 
Interest bearing4,470,100 4,580,006 
Total deposits5,701,945 5,857,774 
Borrowings1,311,927 1,142,949 
Subordinated notes58,933 58,896 
Junior subordinated debentures issued to capital trusts57,087 57,027 
Interest payable5,922 5,380 
Other liabilities59,622 73,117 
Total liabilities7,195,436 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 44,041,213 and 43,937,889 shares
— — 
Additional paid–in capital354,035 354,188 
Retained earnings440,556 429,385 
Accumulated other comprehensive income (loss)(92,032)(106,198)
Total stockholders’ equity702,559 677,375 
Total liabilities and stockholders’ equity$7,897,995 $7,872,518 
13
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Interest income
Loans receivable$55,364 $50,859 $45,517 $40,585 $36,539 
Investment securities – taxable8,725 8,702 8,436 8,673 7,391 
Investment securities – non–taxable7,556 7,543 7,478 7,307 6,697 
Other153 83 65 43 115 
Total interest income71,798 67,187 61,496 56,608 50,742 
Interest expense
Deposits14,819 10,520 4,116 1,677 1,496 
Borrowed funds9,771 6,040 3,895 1,450 1,080 
Subordinated notes880 881 880 881 880 
Junior subordinated debentures issued capital trusts1,091 964 744 556 455 
Total interest expense26,561 18,405 9,635 4,564 3,911 
Net interest income45,237 48,782 51,861 52,044 46,831 
Credit loss expense (recovery)242 (69)(601)240 (1,386)
Net interest income after credit loss expense44,995 48,851 52,462 51,804 48,217 
Non–interest Income
Service charges on deposit accounts3,028 2,947 3,023 2,833 2,795 
Wire transfer fees109 118 148 170 159 
Interchange fees2,867 2,951 3,089 3,582 2,780 
Fiduciary activities1,275 1,270 1,203 1,405 1,503 
Losses on sale of investment securities(500)— — — — 
Gain on sale of mortgage loans785 1,196 1,441 2,501 2,027 
Mortgage servicing income net of impairment713 637 355 319 3,489 
Increase in cash value of bank owned life insurance981 751 814 519 510 
Death benefit on bank owned life insurance— — — 644 — 
Other income362 804 115 461 892 
Total non–interest income9,620 10,674 10,188 12,434 14,155 
Non–interest expense
Salaries and employee benefits18,712 19,978 20,613 19,957 19,735 
Net occupancy expenses3,563 3,279 3,293 3,190 3,561 
Data processing2,669 2,884 2,539 2,607 2,537 
Professional fees533 694 552 283 314 
Outside services and consultants2,717 2,985 2,855 2,485 2,525 
Loan expense1,118 1,281 1,392 1,533 1,205 
FDIC insurance expense540 388 670 775 725 
Core deposit intangible amortization903 925 926 925 926 
Other losses221 118 398 362 168 
Other expenses3,548 3,179 3,578 3,287 3,574 
Total non–interest expense34,524 35,711 36,816 35,404 35,270 
Income before income taxes20,091 23,814 25,834 28,834 27,102 
Income tax expense1,863 2,649 2,013 3,975 3,539 
Net income$18,228 $21,165 $23,821 $24,859 $23,563 
Basic earnings per share$0.42 $0.49 $0.55 $0.57 $0.54 
Diluted earnings per share0.42 0.48 0.55 0.57 0.54 
14
Horizon Bancorp, Inc. Reports First 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, 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 Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Net income as reported$18,228 $21,165 $23,821 $24,859 $23,563 
(Gain) / loss on sale of investment securities500 — — — — 
Tax effect(105)— — — — 
Net income excluding (gain) / loss on sale of investment securities18,623 21,165 23,821 24,859 23,563 
Death benefit on bank owned life insurance (“BOLI”)— — — (644)— 
Net income excluding death benefit on BOLI18,623 21,165 23,821 24,215 23,563 
Adjusted net income$18,623 $21,165 $23,821 $24,215 $23,563 

Non–GAAP Reconciliation of Diluted Earnings per Share
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Diluted earnings per share (“EPS”) as reported$0.42 $0.48 $0.55 $0.57 $0.54 
(Gain) / loss on sale of investment securities0.01 — — — — 
Tax effect— — — — — 
Diluted EPS excluding (gain) / loss on sale of investment securities0.43 0.48 0.55 0.57 0.54 
Death benefit on bank owned life insurance (“BOLI”)— — — (0.01)— 
Adjusted diluted EPS$0.43 $0.48 $0.55 $0.56 $0.54 
15
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Net Income
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Pre–tax income$20,091 $23,814 $25,834 $28,834 $27,102 
Credit loss expense (recovery)242 (69)(601)240 (1,386)
Pre–tax, pre–provision net income$20,333 $23,745 $25,233 $29,074 $25,716 
Pre–tax, pre–provision net income$20,333 $23,745 $25,233 $29,074 $25,716 
(Gain) / loss on sale of investment securities500 — — — — 
Death benefit on BOLI— — — (644)— 
Adjusted pre–tax, pre–provision net income$20,833 $23,745 $25,233 $28,430 $25,716 

Non–GAAP Reconciliation of Net Interest Margin
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Net interest income as reported$45,237 $48,782 $51,861 $52,044 $46,831 
Average interest earning assets7,201,266 7,091,980 7,056,208 6,943,633 6,814,756 
Net interest income as a percentage of average interest earning assets (“Net Interest Margin”)2.67 %2.85 %3.04 %3.13 %2.90 %
Net interest income as reported$45,237 $48,782 $51,861 $52,044 $46,831 
Acquisition–related purchase accounting adjustments (“PAUs”)(367)(431)(906)(1,223)(916)
Adjusted net interest income$44,870 $48,351 $50,955 $50,821 $45,915 
Adjusted net interest margin2.65 %2.83 %2.99 %3.06 %2.85 %

Non–GAAP Reconciliation of Tangible Stockholders’ Equity and Tangible Book Value per Share
(Dollars in Thousands, Unaudited)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Total stockholders’ equity$702,559 $677,375 $644,993 $657,865 $677,450 
Less: Intangible assets171,547 172,450 173,375 173,662 174,588 
Total tangible stockholders’ equity$531,012 $504,925 $471,618 $484,203 $502,862 
Common shares outstanding43,621,422 43,574,151 43,574,151 43,572,796 43,572,796 
Book value per common share$16.11 $15.55 $14.80 $15.10 $15.55 
Tangible book value per common share$12.17 $11.59 $10.82 $11.11 $11.54 

16
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Non–interest expense as reported$34,524 $35,711 $36,816 $35,404 $35,270 
Net interest income as reported45,237 48,782 51,861 52,044 46,831 
Non–interest income as reported$9,620 $10,674 $10,188 $12,434 $14,155 
Non–interest expense / (Net interest income + Non–interest income)
(“Efficiency Ratio”)		62.93 %60.06 %59.33 %54.91 %57.83 %
Non–interest expense as reported$34,524 $35,711 $36,816 $35,404 $35,270 
Net interest income as reported45,237 48,782 51,861 52,044 46,831 
Non–interest income as reported9,620 10,674 10,188 12,434 14,155 
(Gain) / loss on sale of investment securities500 — — — — 
Death benefit on BOLI— — — (644)— 
Non–interest income excluding (gain) / loss on sale of investment securities and death benefit on BOLI$10,120 $10,674 $10,188 $11,790 $14,155 
Adjusted efficiency ratio62.37 %60.06 %59.33 %55.46 %57.83 %

Non–GAAP Reconciliation of Return on Average Assets
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Average assets$7,831,106 $7,718,366 $7,635,102 $7,476,238 $7,319,675 
Return on average assets (“ROAA”) as reported0.94 %1.09 %1.24 %1.33 %1.31 %
(Gain) / loss on sale of investment securities0.03 — — — — 
Tax effect(0.01)— — — — 
ROAA excluding (gain) / loss on sale of investment securities0.96 1.09 1.24 1.33 1.31 
Death benefit on BOLI— — — (0.03)— 
ROAA excluding death benefit on BOLI0.96 1.09 1.24 1.30 1.31 
Adjusted ROAA0.96 %1.09 %1.24 %1.30 %1.31 %

17
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
Non–GAAP Reconciliation of Return on Average Common Equity
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Average common equity$693,472 $660,188 $680,376 $677,299 $716,341 
Return on average common equity (“ROACE”) as reported10.66 %12.72 %13.89 %14.72 %13.34 %
(Gain) / loss on sale of investment securities0.29 — — — — 
Tax effect(0.06)— — — — 
ROACE excluding (gain) / loss on sale of investment securities10.89 12.72 13.89 14.72 13.34 
Death benefit on BOLI— — — (0.38)— 
ROACE excluding death benefit on BOLI10.89 12.72 13.89 14.34 13.34 
Adjusted ROACE10.89 %12.72 %13.89 %14.34 %13.34 %

Non–GAAP Reconciliation of Return on Average Tangible Equity
(Dollars in Thousands, Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Average common equity$693,472 $660,188 $680,376 $677,299 $716,341 
Less: Average intangible assets172,139 173,050 173,546 175,321 176,356 
Average tangible equity$521,333 $487,138 $506,830 $501,978 $539,985 
Return on average tangible equity (“ROATE”) as reported14.18 %17.24 %18.65 %19.86 %17.70 %
(Gain) / loss on sale of investment securities0.39 — — — — 
Tax effect(0.08)— — — — 
ROATE excluding (gain) / loss on sale of investment securities14.49 17.24 18.65 19.86 17.70 
Death benefit on BOLI— — — (0.51)— 
ROATE excluding death benefit on BOLI14.49 17.24 18.65 19.35 17.70 
Adjusted ROATE14.49 %17.24 %18.65 %19.35 %17.70 %


Earnings Conference Call

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

Participants may access the live conference call on April 27, 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 May 4, 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 6349380.



18
Horizon Bancorp, Inc. Reports First Quarter 2023 Results
About Horizon Bancorp, Inc.

Celebrating 150 years, Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion–asset commercial bank holding company for Horizon Bank, which serves 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 secured 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.
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hbncpresentation20231q-f
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 APRIL 26, 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; continuing risks and uncertainties relating to the COVID-19 pandemic and government responses thereto; 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 43-47. 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 ® Corporate Overview 3

 
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 1Q23 Highlights Solid ROACE & ROATE & Disciplined Expense Management • Diluted EPS of $0.42 • ROAA of 0.94% • ROACE of 10.66% • ROATE of 14.18%* • Non-interest expense/average assets of 1.79% Stable Core Deposits • Total deposits down 2.7% from linked quarter • Consumer & Commercial Deposits Flat • Public Funds – price sensitive Good Loan Growth • Total loans up 2.1% or 8.3% annualized • Consistent credit quality * See Footnote Index and non-GAAP reconciliations in Appendix. ($000s except per share data) 1Q23 Change % vs. 4Q22 1Q22 Income Statement Pre-tax, pre-provision net income* $20,333 (14.4)% (20.9)% Reported net income $18,228 (13.9)% (22.6)% Diluted EPS $0.42 (12.5)% (22.2)% Annualized non-interest exp. / avg. assets 1.79% (0.05)% (0.24)% Return on average assets 0.94% (0.15)% (0.37)% Return on average common equity 10.66% (2.06)% (2.68)% Return on average tangible equity* 14.18% (3.06)% (3.52)% Balance Sheet Total loans $4,249,360 2.1% 13.9% Total deposits $5,701,945 (2.7)% (2.6)% Credit Quality NPA / total assets ratio 0.25% (5) bps (5) bps Net charge-offs to avg. loans for the period 0.01% 0 bps 1 bps

 
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 Multiple Revenue Streams Diversifies Risk 5 Retail Banking Business Banking Mortgage Banking Wealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles Serving the Right Side of Chicago Headquartered in Michigan City, IN, with 70+ locations in attractive markets in Indiana and Michigan Double commuter track addition to the South Shore train lines supports growth in Northwest Indiana, which offers proximity to Chicago, with lower taxes and cost of living Major colleges and universities throughout footprint, including Notre Dame University, Purdue University, Grand Valley State University and Michigan State University Note: Total loan figures for Indiana and Michigan are as of 3/31/23 and do not include Mortgage Warehouse or purchased Home Equity Lines of Credit. $2.3B IN LOANS $3.9B IN DEPOSITS $1.8B IN LOANS $1.8B IN DEPOSITS Diversified & Attractive Footprint

 
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 ® 6 Northern Indiana Central Indiana Michigan $2.3B Deposits $1.5B Deposits $1.8B Deposits 27 Branches 18 Branches 26 Branches • Positive and stable economic base comparable to markets in Northern Indiana • Grand Rapids one of the most attractive markets in the Midwest • Significant local investment in technology and start up innovation • Greater Indianapolis area a high growth segment for the Midwest • Purdue University collaborates with contiguous cities of Lafayette and West Lafayette • Attractive market to outbound Illinois businesses and people • Significant manufacturing expansion • State surplus of $6 billion • Considerable future private and public investments • Double commuter track addition to the South Shore train lines • Attractive market to outbound Illinois businesses and people Source: S&P Global Market Intelligence. Note: Core market demographics reflect MSA data. Deposit data as of 3/31/2023. Multiple High Growth & Stable Markets Northern Indiana Central Indiana Michigan Median HHI $68,745 $98,246 $63,139 ’23 – ’28 HHI Growth 10.36% 11.36% 11.31% ’23 – ’28 Pop. Growth 1.21% 1.86% 0.24%

 
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 ® 7 Indiana(1) – National Rankings Michigan(2) – National Rankings #1 – Infrastructure #1 – Energy Sector Job Growth #1 – Manufacturing Output #1 – 25% of all U.S. Trade with Canada passes through Michigan #2 – Cost of Doing Business #3 – State for Foreign Direct Investment #2 – Manufacturing Employment #4 – Most Affordable State in the Country #2 – Property Tax Rank #8 – Best for New College Graduates #3 – Automotive Affordable tax structure (1) Source: Indiana Economic Development Corporation. (2) Source: www.michiganbusiness.org/why-michigan - Michigan Economic Development Corporation Indiana & Michigan Great Business & Living Environments

 
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 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 Craig M. Dwight Chairman & CEO • 45 Years of Banking Experience • 25 Years as President or CEO of Bank 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 • 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 ® Q1 Performance 9

 
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 ® Annual Commercial Loan Growth 6-9% 6.3% Annual Consumer Loan Growth 4-6% 24.4% Net Interest Margin 2.70-2.80% 2.67% Net Interest Income $185-$195 M $45 M Q1 $180 M Ann. Annual Expenses to Average Assets <1.90% 1.79% ROAA >1.10% 0.94% ROAE >11.70% 10.66% 2023 Goal Update Actual 2023 YTD Goal 2023 YTD 10

 
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 ~$38 million, 6.3% annualized • Net funding of $109 million for Q1 compared to $98 million for Q4 • Q1 loan growth distribution • 26% C&I • 24% owner occupied CRE • 50% non-owner occupied CRE - disbursed across major sub-sectors • Commercial pipeline at $130 million compared to $134 million at the end of Q4 • YTD net charge-offs of 1 basis point • New production yield ~ 1.75% higher than payoff/pay down yields Diversified Commercial Loans By Geography & Mix 11 Northern Indiana, 14% Central Indiana, 34% Other, 3% Southwest Michigan, 16% Northern Michigan, 9% East Michigan, 7% West Michigan, 17% 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 3/31/23

 
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% 2% 3% 3% 3% 5% 6% 6% 6% 7% 10% Farm Land Mini Storage All Others Lessors - Residential 1-4 Medical Office Lessors Student Housing Retail Motel Warehouse/Industrial Office (except medical) Lessors - Residential Multi Note: Data as of 3/31/23. All percentages are of total commercial loans. 1% 1% 1% 1% 2% 2% 2% 2% 3% 3% 5% Wholesale Trade Construction Professional & Technical Services 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% 2% 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 12 Non-Owner Occupied CRE – 52% of Total Commercial Loans ~$1.3 Billion Owner Occupied CRE – 23% of Total Commercial Loans ~$0.6 Billion C&I Loans – 25% of Total Commercial Loans ~$0.6 Billion Diversified Commercial Loans By Industry Commercial Loans - $2.505 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 ® 13 High Value Direct Consumer Loans • Consumer portfolio increased ~$56 million, primarily through addition of high quality HELOC purchase yielding ~ 9.25% • Organic balances down ~ 1% reflective of seasonality of production/amortization • Consistent focus on higher credit quality borrowers • YTD net recovery of 3 basis points • New production yield ~ 1.40% higher than payoff/pay down yields Quarter Highlights Direct Auto, 4.9% Home Equity Term, 10.1% HELOCs, 78.8% RV & Boat, 4.8% Unsecured, 0.7% Other, 0.7% Total Direct Outstanding $523M Consumer Direct Portfolio Weighted Metrics Credit Score 736 Debt-to-Income 34% Loan-to-value 69% 2023 Production Credit Score Distribution 700+ 370 78.7% 670 – 699 79 16.8% 640 – 669 21 4.5% 470 100.0% Note: Data as of 3/31/23

 
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 ® 14 • Indirect portfolio increased $3MM, consistent with Q4 and 2023 plan • Higher quality borrowers with capacity to repay • YTD net charge-offs of 26 basis points • New production yield ~ 2.90% higher than payoff/pay down yields • Short portfolio duration at 2.4 years provides flexibility for ALCO strategies Quality Indirect Loans Quarter Highlights 5 Year Indirect Balances ($ in millions) 2023 Production Credit Score Distribution 700+ 1,295 86.5% 670 – 699 170 11.3% 640 – 669 33 2.2% 1,498 100.0% Consumer Indirect Portfolio Weighted Metrics Credit Score 757 Debt-to-Income 34% $349 $358 $373 $482 $485 2019 2020 2021 2022 1Q23 Note: Data as of 3/31/23

 
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 Prime Mortgage Loans • Mortgage portfolio increased $9MM, consistent with Q4 and 2023 plan • Strategy focused on saleable production • Results aligning with industry Q1: $30MM orig., $785,000 fee income Q4: $62MM orig., $1.2MM fee income • YTD net charge-offs of 0 basis points • Consistent higher quality borrowers, significant capacity to pay and low LTV • New production yield ~ 2.40% higher than payoff/pay down yields 2023 Production Credit Score Distribution 700+ 112 74.7% 670 – 699 11 7.3% 640 – 669 27 18.0% 150 100.0% Mortgage Portfolio Weighted Metrics Credit Score 746 Debt-to-Income 34% Loan-to-value 71% Jumbo, 48.3% Rental, 1.1% Conforming, 44.8% Construction, 5.8% Total Outstanding $662M Quarter Highlights Note: Data as of 3/31/23

 
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 ® $136 $284 $138 $285 $379 0.00% 0.01% 0.00% 0.01% 0.01% 1Q22 2Q22 3Q22 4Q22 1Q23 Net Charge Offs Commercial Resi Real Estate Consumer Total NCOs/Average Loans $ 0 0 0 s $20,113 $20,206 $19,158 $21,840 $19,797 0.54% 0.51% 0.48% 0.52% 0.47% 1Q22 2Q22 3Q22 4Q22 1Q23 Non-Performing Loans (period end) Commercial Resi Real Estate Consumer Total NPLs/Loans $ 0 0 0 s 16 CECL $52,508 $52,350 $51,369 $50,464 $49,526 1.41% 1.32% 1.27% 1.21% 1.16% 1Q22 2Q22 3Q22 4Q22 1Q23 ACL ACL/Loans Strong Asset Quality Metrics Allowance for Credit Losses (period end) $ 0 0 0 s -$1,386 $240 -$601 -$69 $242 1Q22 2Q22 3Q22 4Q22 1Q23 Credit Loss Expense $ 0 0 0 s

 
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 HBNC U.S. commercial banks¹ Net charge offs as a % of average loans 0.17% 0.48 0.41% 0.03% 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 HBNC U.S. commercial banks¹ Nonperforming assets as % of assets 0.22% 0.36% 0.42% 0.30% Source: SNL Financial Note: Financial data as of December 31, 2022; ¹ Based on regulatory financials for all U.S. commercial banks as defined by SNL Financial banking industry aggregates Proven Credit Quality Through Cycles 17

 
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 ® 18 Note: Data as of 3/31/23 Seasoned, Core Deposit Base • Consumer: $14K avg. account balance 11 year avg. tenure • Commercial: $81K avg. account balance 10 year avg. tenure • Public: $819K avg. account balance 11 year avg. tenure 52% of Balances in Checking Accounts • Daily operating accounts of clients • Long tenured relationships of 11 years 75% 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% 19% 25% FDIC Insured <$250K, Collateralized and/or Third-Party Insured (e.g., IntraFi and Indiana PDIF) 75% Total Deposits at 3/31/23 $5.7B

 
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 3/31/23 19 Deposit Stability & Strength Cyclical Balance Fluctuation • Public Funds ($122MM) • ($75MM) in March with elevated pricing • Retained relationships • Larger in size, fluid environment. Additional opportunity in subsequent quarters at more attractive rates Stability in Core Relationships • Cons/Comm Portfolio ($34MM) • Combined Changed (0.78%) • Consumer portfolio ($14MM)/(0.54%) • Commercial portfolio ($20MM)/(1.14%) • Movement between deposit classes Borrowings • +169MM • Attractive funding cost at ~50-75 bpts lower than Public • Income accretive decisions • Significant liquidity capacity Savings $3,000 $2,500 $2,000 $1,500 $1,000 $500 Checking CD $2,589 $2,575 4Q22 1Q23 Consumer $1,726 $1,706 4Q22 1Q23 Commercial $1,542 $1,420 4Q22 4Q23 Public $1,143 $1,312 4Q22 1Q23 Borrowings Dollar amounts in thousands.

 
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 ® 20 Financial Highlights

 
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 ® Ample Available Liquidity 21 Sources of Liquidity $2,734 $755 $417 $393 $1,169 Total Unsecured Lines/Other Brokered Deposits Capacity Available Lines Cash/Marketable Investments December 31, 2022 $2,741 $363 $400 $1,542 $436 Total Unsecured Lines/Other Brokered Deposits Capacity Available Lines Cash/Marketable Investments March 31, 2023 $millions $millions Available Liquidity • >$1.5B of available secured borrowings at March 31, 2023 • ~ $660M of unpledged securities at March 31, 2023 Term Borrowings • Moved short-term and higher cost funding to longer-term funding during 1Q23 • $1.1B of term borrowings at March 31, 2023 at a weighted average fixed rate of 3.52% and an expected duration of ~1 year • $400M of borrowings at March 31, 2023 are a 10 year fixed rate putable with a 1 year lock at a rate of 2.65% • After 1 year this can be put back each quarter starting in January 2024

 
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 11.6% 12.0% 11.3% 12.0% 11.3% 11.0% 11.6% 12.0% 11.9% 12.1% 11.4% 11.5% 2018 2019 2020 2021 2022 1Q23 10.1% 10.5% 10.7% 9.1% 10.0% 10.1% 9.9% 9.9% 9.0% 8.9% 9.5% 9.4% 2018 2019 2020 2021 2022 1Q23 13.4% 14.0% 14.9% 15.7% 14.4% 14.0% 13.5% 13.5% 14.3% 14.2% 13.6% 13.6% 2018 2019 2020 2021 2022 1Q23 Source: S&P Global Market Intelligence. Note: Company closed the acquisition of Salin Bancshares, Inc. in March 2019. TCE / TA (%) Leverage Ratio (%) Total RBC Ratio (%) 4.0% Adequate + Buffer 7.0% KBW Regional Bank Index Median - MRQ Solid Regulatory Capital 10.5% HBNC Ratio 8.8% 9.3% 9.1% 7.6% 6.6% 6.9% 9.1% 9.3% 8.6% 8.3% 7.2% 7.2% 2018 2019 2020 2021 2022 1Q23 CET1 Ratio (%)

 
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 ® 23 Accumulated Other Comprehensive Income metrics improved for the second consecutive quarter • Tangible Common Equity (“TCE”) was 6.87% in the first quarter compared to 6.56% in the fourth quarter • We have the intent and ability to hold the investments to maturity • Retained earnings and investments moving down the curve would earnback capital loss • No impact to regulatory capital ratios With an additional 100bp parallel shock to the AFS investments over the next quarter • TCE is estimated to be 6.52%, or a 35bp decline from the first quarter Bank capital ratios exceed regulatory capital ratios for “well capitalized” banks • Leverage and risk-based capital ratios of 8.86% and 13.15%, respectively Improving Tangible Common Equity

 
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 Increasing Deposit Premiums Core Deposit Premiums Remain Near Historic Lows Natural Balance Sheet Hedge Courtesy of Stifel Financial Corp.

 
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 Productive Use of Capital Deploying Capital • Investing to leverage capital through organic loan growth • Opportunistic acquisitions with focus on lease models • Stock buyback on pause until interest rates stabilize Long-standing Dividend Strong 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 March 31, 2023, implied annualized dividend yield of 5.8% • Targeted dividend payout ratio of 30-40% and aligned with capital retention strategy • Strong cash position at the holding company currently represents approximately 8 quarters of the current dividend plus fixed costs

 
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 $ M $25.7 $29.1 $25.2 $23.7 $20.3 $23.6 $24.2 $23.8 $21.2 $18.6 $0.54 $0.56 $0.55 $0.48 $0.43 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. Net Income(1) Pre-tax, Pre-provision Income Adj. Net Income Adj. EPS 14.56% 16.84% 14.71% 14.27% 12.18% 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. PTPP ROACE(1) Adj. PTPP ROACE $45.9 $50.8 $51.0 $48.4 $44.9 2.85% 3.06% 2.99% 2.83% 2.65% 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. Net Interest Income(1) Adj. Net Interest Income Adj. NIM $ M 17.70% 19.35% 18.65% 17.24% 14.18% 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. ROATE(1) Adj. ROATE Favorable Core Return on Average Tangible Equity (1) See Footnote Index and non-GAAP reconciliations in 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 ® Fed Agy CMO, 3% State and Muni, 51% Fed Agy MBS, 18% Private labeled MBS, 1% U.S. Treasury, 19% Corp, 8% Total Investments at 3/31/23 $3.0B 27 Investment portfolio cash flows are helping to fund higher yielding loans • Book yield of 2.22%, effective duration of 6.58 years • Positive spread over total cost of funds • $25 million of cash flows during Q1 • Estimated $100 million of cash flows expected through the end of 2023, not including sales • Run off yield in 2023 is 2.49% • Sold ~ $64 million in securities in the first quarter with a $500,000 loss and a six month payback by paying down short-term debt Investment Portfolio Securities Portfolio Detail Security Type ($000s) 1Q 2023 Amortized Cost 4Q 2022 Amortized Cost QoQ Change 1Q 2023 Duration (yrs) U.S. Treasury and federal agencies $589 $590 $(1) 4.48 Mortgage-backed 667 690 (23) 5.37 Corporate securities 246 248 (2) 5.23 State and municipal 1,578 1,633 (55) 8.30 Total Securities $3,080 $3,161 $(81) 6.58

 
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 Disciplined Loan Pricing $3.8 $3.6 $3.5 $3.6 $3.6 $3.8 $3.9 $4.0 $4.1 4.22% 4.25% 4.38% 4.34% 4.10% 4.33% 4.61% 5.02% 5.44% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Yield on Loans (%) / Total Average Loans ($B) Total Average Loans Yield on 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 ® Non-interest bearing 21% Interest bearing(1) 60% CDs 19% 29 • In-market relationships and strategic pricing, contributed to total deposit cost of 1.04%(1) • Total deposit beta’s have accelerated in Q1 to 51% compared to 32% in the linked quarter • Stable and consistent deposit mix • Account and deposit retention data very strong to date Average Cost(1) Actual Deposits ($000s) March 31, 2023 Actual Balances December 31, 2022 Actual Balances 1Q 2023 (QTD) 4Q 2022 (QTD) Non-interest bearing $1,231,845 $1,277,768 0.00% 0.00% Interest bearing (excluding CDs) $3,402,525 $3,582,891 0.93% 0.65% Time Deposits (CDs) $1,067,575 $997,115 2.62% 2.19% Total Deposits $5,701,945 $5,857,774 1.04% 0.71% Stable Core Deposits Total Deposits at 3/31/23 $5.7B (1) See Footnote Index and non-GAAP reconciliations in 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 ® 30 Balance Sheet Management Deposit Betas Drive Sensitivity • Actively managing balance sheet for continued elevated rates throughout 2023 • $2.3 billion of assets repricing in the next 12 months. $1.3 billion adjust with a rate change to their index within 90 days • Deposit betas range from 15% for consumer deposits to 80% on public funds • Evaluating opportunities for NII expansion as market stabilizes * Based on 12-month parallel rate shock as of December 31, 2022 and March 31, 2023. $213 $207 $202 $197 $202 $203 $200 $198 -6.00% -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% $185 $190 $195 $200 $205 $210 $215 - 100 bp Base + 100 bp + 200 bp M ill io n s NII Volatility* 12/31/22 NII 3/31/23 NII 12/31/22 % Impact on NII 3/31/23 % Impact on NII 12-Month Parallel Interest Rate Shock

 
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 ® 31 Good Expense Control Offsets Lower Non-Interest Income $35,270 $35,404 $36,816 $35,711 $34,524 1.95% 1.90% 1.91% 1.84% 1.79% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 1Q22 2Q22 3Q22 4Q22 1Q23 All Other Non-interest Expense Salaries & Employee Benefits Non-interest Expense ($000s) Non-interest Income ($000s) $14,155 $12,434 $10,188 $10,674 $9,620(1) $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 1Q22 2Q22 3Q22 4Q22 1Q23 Service fees Fiduciary activities Mortgage related income All Other (1) 1Q23 Non-interest Income includes ~ $500,000 of losses on sale of investment securities.

 
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 ® Closing Comments 32

 
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 loans growth with low credit risk profile Tenured and stable deposit base with significant liquidity Disciplined operating culture Compelling value supported by commitment to dividend 1.79% operating expenses/average assets YTD Credit metrics have historically outperformed the market 33 Why Horizon? A High-Performing Operator in Growth Markets 75% deposits insured/collateralized Stable, granular deposit base with tenure over 10 years. Majority of balances in transactional checking accounts Significant liquidity - $2.7 billion in available liquidity 30 minutes from downtown Chicago benefiting from Illinois exodus Attractive Midwest Markets with promising infrastructure investment Growing manufacturing, healthcare, and educational industries throughout the footprint 87% P/TBV and 5.3x P/E (TTM) 6.0% dividend yield 30-year record of uninterrupted quarterly cash dividends to shareholders Commercial portfolio well balanced across multiple segments and markets, very limited concentration risk Consumer portfolio is diverse across consumer, indirect and mortgage. Higher credit borrowers with solid payment capacity Excellent credit metrics: 1 basis points charge-offs, 1.17% allowance for credit losses Price multiples as of 4/21/2023

 
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 ® 34 Q&A

 
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 ® 35 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 ® 36 $0.1 $0.1 $0.2 $0.2 $0.5 $0.7 $0.6 $0.9 $1.0 $0.5 $0.6 $0.7 $0.8 $0.9 $1.1 $1.2 $1.3 $1.3 $1.4 $1.4 $1.5 $1.8 $1.8 $2.1 $2.7 $3.1 $4.0 $4.2 $5.2 $5.9 $7.4 $7.9 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Horizon has grown assets at a 12% CAGR since 2000 via 15 acquisitions and organic expansion Pre-crisis Post-crisis Recent Expansion Proven History of Organic Growth Supplemented by Strategic Acquisitions Year | Assets Acquired assets Source: SNL Financial Note: Financial data as of December 31, 2022; Pre-crisis represents 2000 – 2005, Post-crisis represents 2010 – 2017; Recent expansion represents 2019 – present Consistent strategy over the last two decades: Complementing organic growth with strategic M&A, expanding our footprint and offering to customers $bn (unless otherwise stated) 2 acquisitions $0.13bn in assets 11 acquisitions $2.27bn in assets 2 acquisitions $1.90bn in assets

 
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 ® 37 Greater than KRX… 3 years 77% 10 years 44% … of the time Source: SNL Financial; Note: Financial Data as of December 31, 2022; ¹ Represents the average Nasdaq Regional Banking Index; ² Based on HBNC’s ROATCE Beta relative to average KRX return (β = 0.64) since 2012Q4; ³ Based on HBNC’s ROAA Beta relative to average KRX ROAA (β = 0.52) since 2012Q4 18.0% 19.9% Leading returns over the past 10 years 0% 5% 10% 15% 20% 25% 30% 2012Q4 2013Q4 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 2019Q4 2020Q4 2021Q4 2022Q4 Historical Quarterly ROATCE vs. KRX¹ HBNC KRX¹ Historical Quarterly ROAA vs. KRX¹ 1.10% 1.35% HBNC KRX¹ 0.0% 0.5% 1.0% 1.5% 2.0% 2012Q4 2013Q4 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 2019Q4 2020Q4 2021Q4 2022Q4 ~36% less volatile than the KRX² ~48% less volatile than the KRX³ Greater than KRX… 3 years 85% 10 years 68% … of the time Diversified Business Model Produces Consistent, Top Tier Profitability

 
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, $2,507M, 59% Residential Mortgage, $662M, 16% Consumer, $1,026M, 24% Mortgage Warehouse, $53M, 1% Held For Sale, $2M, 0% 38 Gross Loans at 3/31/23 $4.2B Commercial Loans by Industry ($M) 3/31/23 Balance % of Commercial Portfolio % of Total Loan Portfolio Lessors – Residential Multi Family $250 10.0% 5.9% Health Care, Educational & Social 194 7.7% 4.6% Office (except medical) 165 6.6% 3.9% Warehouse/Industrial 164 6.5% 3.9% Individual and Other Services 163 6.5% 3.8% Retail 146 5.8% 3.4% Hotel 145 5.8% 3.4% Lessors – Student Housing 135 5.4% 3.2% Finance & Insurance 123 4.9% 2.9% Real Estate Rental & Leasing 122 4.9% 2.9% Manufacturing 112 4.5% 2.6% Retail Trade 85 3.4% 2.0% Construction 82 3.3% 1.9% Medical Office 71 2.8% 1.7% Lessors – Residential 1–4 Family 69 2.8% 1.6% Government 63 2.5% 1.5% Restaurants 62 2.5% 1.5% Mini Storage 53 2.1% 1.2% Leisure and Hospitality 49 2.0% 1.2% Professional & Technical Services 45 1.8% 1.1% Transportation & Warehousing 39 1.5% 0.9% Farm Land 39 1.5% 0.9% Wholesale Trade 33 1.3% 0.8% Land Development 22 0.9% 0.5% Other 76 3.0% 1.8% Total $2,507 100.0% 59.1% 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 ® 39 Historical Financials ($M except per share data) 2017 2018 2019 2020 2021 2022 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 Balance Sheet: Total Assets $3,964 $4,247 $5,247 $5,887 $7,375 $7,873 $7,420 $7,641 $7,719 $7,873 $7,900 Gross Loans $2,838 $3,014 $3,641 $3,881 $3,671 $4,164 $3,730 $3,959 $4,033 $4,164 $4,251 Deposits $2,881 $3,139 $3,931 $4,531 $5,803 $5,858 $5,851 $5,846 $5,831 $5,858 $5,702 Tangible Common Equity $325 $362 $478 $517 $548 $505 $503 $484 $472 $505 $532 Profitability: Net Income $33.1 $53.1 $66.5 $68.5 $87.1 $93.4 $23.6 $24.9 $23.8 $21.2 $18.2 Return on Average Assets 0.97% 1.31% 1.35% 1.22% 1.34% 1.24% 1.31% 1.33% 1.24% 1.09% 0.94% Return on Average Equity 8.7% 11.2% 11.0% 10.3% 12.2% 13.7% 13.3% 14.7% 13.9% 12.7% 10.7% Net Interest Margin 3.70% 3.63% 3.58% 3.33% 3.03% 2.98% 2.90% 3.13% 3.04% 2.85% 2.67% Efficiency Ratio 65.0% 60.0% 57.0% 56.0% 57.1% 58.0% 57.8% 54.9% 59.3% 60.1% 62.4% Asset Quality: NPAs & 90+ PD / Assets 0.44% 0.41% 0.47% 0.49% 0.31% 0.30% 0.30% 0.28% 0.29% 0.30% 0.27% NPAs & 90+ PD / Loans + OREO 0.61% 0.57% 0.68% 0.74% 0.62% 0.58% 0.61% 0.55% 0.56% 0.58% 0.51% Reserves / Total Loans 0.58% 0.59% 0.49% 1.47% 1.48% 1.21% 1.41% 1.32% 1.27% 1.21% 1.17% NCOs / Avg. Loans 0.04% 0.05% 0.06% 0.05% 0.05% 0.02% 0.00% 0.01% 0.00% 0.01% 0.01% Bancorp Capital Ratios: TCE Ratio 8.5% 8.8% 9.4% 9.1% 7.6% 6.6% 6.9% 6.5% 6.3% 6.6% 6.9% Leverage Ratio 9.9% 10.1% 10.5% 10.7% 9.2% 10.2% 9.7% 9.6% 9.6% 10.0% 10.1% Tier 1 Capital Ratio 12.4% 12.8% 13.5% 14.0% 14.1% 12.5% 14.1% 13.7% 13.5% 13.5% 13.1% Total Capital Ratio 12.9% 13.4% 14.0% 14.9% 15.4% 13.4% 15.2% 14.6% 14.4% 14.4% 14.0% Year Ended December 31, Quarter 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 ® 40 Leader In Our Core Markets Source: S&P Global Market Intelligence. Deposit data as of 6/30/22, estimated pro forma for recent or pending transactions per S&P Global Market Intelligence MSA HBNC Rank HBNC Branches HBNC Market Share Deposits in Market ($M) Michigan City-La Porte, IN 1 8 55.3% $1,184 Indianapolis-Carmel-Anderson, IN 16 8 1.0% 791 Chicago-Naperville-Elgin, IL-IN-WI 47 10 0.1% 709 Lafayette-West Lafayette, IN 4 5 7.1% 344 Lansing-East Lansing, MI 12 4 2.4% 278 Niles, MI 4 5 12.0% 275 Detroit-Warren-Dearborn, MI 22 1 0.1% 224 Midland, MI 2 2 19.0% 219 Cadillac, MI 2 3 29.0% 219 Grand Rapids-Kentwood, MI 18 2 0.6% 192 Logansport, IN 3 1 17.5% 163 Columbus, IN 6 1 6.4% 118 Fort Wayne, IN 13 3 1.2% 114 Auburn, IN 3 2 11.9% 114 Warsaw, IN 5 2 5.1% 101 Kalamazoo-Portage, MI 9 1 2.0% 94 Big Rapids, MI 4 1 11.5% 80 Marion, IN 6 1 7.0% 68 Sturgis, MI 5 1 5.9% 62 Kokomo, IN 7 1 3.0% 47 Elkhart-Goshen, IN 10 1 0.9% 44 Kendallville, IN 5 1 4.8% 39 Saginaw, MI 12 1 0.8% 21 South Bend-Mishawaka, IN-MI 15 1 0.3% 17 Total Franchise 76 $5,900

 
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 ® 41 Slide 4 • 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.) • 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.) Slide 26 • Adjusted net income and adjusted diluted EPS excludes loss on sale of investment securities, net of tax and death benefit on bank owned life insurance. (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.) • Adjusted net interest income and adjusted net interest margin exclude acquisition-related purchase accounting adjustments. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Adjusted ROATE and Adjusted pre-tax, pre-provision ROACE exclude loss on sale of investment securities, net of tax and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 29 • 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.) 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 ® 42 Slides 43-47 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 ® 43 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Net income as reported 18,228$ 21,165$ 23,821$ 24,859$ 23,563$ (Gain)/loss on sale of investment securities 500 - - - - Tax effect (105) - - - - Net income excluding (gain)/loss on sale of investment securities 18,623 21,165 23,821 24,859 23,563 Death benefit on bank owned life insurance ("BOLI") - - - (644) - Net income excluding death benefit on BOLI 18,623 21,165 23,821 24,215 23,563 Adjusted net income 18,623$ 21,165$ 23,821$ 24,215$ 23,563$ March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Diluted EPS as reported 0.42$ 0.48$ 0.55$ 0.57$ 0.54$ (Gain)/loss on sale of investment securities 0.01 - - - - Tax effect - - - - - Diluted EPS excluding (gain)/loss on sale of investment securities 0.43 0.48 0.55 0.57 0.54 Death benefit on bank owned life insurance ("BOLI") - - - (0.01) - Diluted EPS excluding death benefit on BOLI 0.43 0.48 0.55 0.56 0.54 Adjusted diluted EPS 0.43$ 0.48$ 0.55$ 0.56$ 0.54$ Three Months Ended Three Months Ended Non-GAAP Reconciliation of Net Income (Dollars in Thousands, Unaudited) Non-GAAP Reconciliation of Diluted Earnings per Share (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 ® 44 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Net interest income as reported 45,237$ 48,782$ 51,861$ 52,044$ 46,831$ Average interest earning assets 7,201,266 7,091,980 7,056,208 6,943,633 6,814,756 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 2.67% 2.85% 3.04% 3.13% 2.90% Net interest income as reported 45,237$ 48,782$ 51,861$ 52,044$ 46,831$ Acquisition-related purchase accounting adjustments ("PAU") (367) (431) (906) (1,223) (916) Adjusted net interest income 44,870$ 48,351$ 50,955$ 50,821$ 45,915$ Adjusted net interest margin 2.65% 2.83% 2.99% 3.06% 2.85% 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 ® 45 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Average common equity 693,472$ 660,188$ 680,376$ 677,299$ 716,341$ Less: Average intangible assets 172,139 173,050 173,546 175,321 176,356 Average tangible equity 521,333$ 487,138$ 506,830$ 501,978$ 539,985$ Return on average tangible equity ("ROATE") as reported 14.18% 17.24% 18.65% 19.86% 17.70% (Gain)/loss on sale of investment securities 0.39 - - - - Tax effect (0.08) - - - - ROATE excluding (gain)/loss on sale of investment securities 14.49 17.24 18.65 19.86 17.70 Death benefit on bank owned life insurance ("BOLI") - - - (0.51) - ROATE excluding death benefit on BOLI 14.49 17.24 18.65 19.35 17.70 Adjusted ROATE 14.49% 17.24% 18.65% 19.35% 17.70% 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 ® 46 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Pre-tax income 20,091$ 23,814$ 25,834$ 28,834$ 27,102$ Provision for credit losses 242 (69) (601) 240 (1,386) Pre-tax, pre-provision net income 20,333$ 23,745$ 25,233$ 29,074$ 25,716$ Pre-tax, pre-provision net income 20,333$ 23,745$ 25,233$ 29,074$ 25,716$ (Gain)/loss on sale of investment securities 500 - - - - Death benefit on bank owned life insurance - - - (644) - Adjusted pre-tax, pre-provision net income 20,833$ 23,745$ 25,233$ 28,430$ 25,716$ Average common equity 693,472$ 660,188$ 680,376$ 677,299$ 716,341$ Unadjusted pre-tax, pre-provision ROACE 11.89% 14.27% 14.71% 17.22% 14.56% Adjusted pre-tax, pre-provision ROACE 12.18% 14.27% 14.71% 16.84% 14.56% 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 ® 47 Footnote Index March 31, December 31, 2023 2022 Total deposit interest expense as reported 14,819$ 10,520$ Average interest bearing deposits 4,502,199 4,555,887 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 1.33% 0.92% Average interest bearing deposits 4,502,199 4,555,887 Average non-interest bearing deposits 1,255,697 1,321,139 Average total deposits 5,757,896$ 5,877,026$ Annualzied deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 1.04% 0.71% Three Months Ended Non-GAAP Reconciliation of Cost of Deposits (Dollars in Thousands, Unaudited)