hbnc-20220427


Contact:			Mark E. Secor
			Chief Financial Officer
Phone:			(219) 873-2611
Fax:			(219) 874-9280
Date:			April 27, 2022

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54 on Record Profitability,

Higher Fees and Pre–Tax, Pre–Provision Net Income, and

Organic Growth in Total, Commercial and Consumer Loans

Michigan City, Indiana, April 27, 2022 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) — Horizon Bancorp, Inc. (“Horizon” or the “Company”) announced its unaudited financial results for the three months ending March 31, 2022.

“The intentional build out of Horizon’s lending teams, technology, durable customer relationships, and low–cost Midwest deposit franchise is reflected in the Company’s first quarter loan growth, higher fees and pre–tax, pre–provision net income, and record earnings,” Chairman and CEO Craig M. Dwight said. “We believe our asset sensitive balance sheet, strong credit quality and scalable business model will continue to provide an excellent foundation for organic growth in commercial and consumer lending, revenue and profits, along with incremental improvement in operating leverage through 2022.”

First Quarter 2022 Highlights

•Net income grew to a record $23.6 million, up 10.0% from the linked quarter and 15.4% from the prior year period. Diluted earnings per share (“EPS”) of $0.54 was up from $0.49 for the fourth quarter of 2021 and $0.46 for the first quarter of 2021.

•Pre–tax, pre–provision net income grew to $25.7 million, up 9.7% from the linked quarter and 6.1% from the prior year period. This non–GAAP financial measure is utilized by banks to provide a greater understanding of pre–tax profitability before giving effect to credit loss expense. (See the “Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Net Income” table below.) Horizon recorded a provision release of $1.4 million in the quarter and $2.1 million in the linked quarter, as well as provision expense of $367,000 in the prior year period.

•Reported net interest margin (“NIM”) was 2.99% and adjusted NIM was 2.93%, with reported NIM increasing by two basis points and adjusted NIM increasing by seven basis points from the fourth quarter of 2021. (See the “Non-GAAP Reconciliation of Net Interest Margin” table below for the definition of this non–GAAP calculation of adjusted NIM.)

•The Company was asset sensitive as of March 31, 2022 but less than the previous quarter as additional cash was deployed to higher yielding assets. Due to the deployment of cash the base case estimate increased over $10.0 million from last quarter and reduced estimates for parallel rate shocks to the balance sheet, at a 100 basis point shock and 200 basis point shock, to net interest income increases of approximately $2.5 million and $3.8 million, respectively.

•The steepening of the yield curve during the first quarter resulted in unrealized losses on available for sale investments of $73.6 million compared to unrealized gains of $7.2 million at December 31, 2021. The impact to the tangible capital ratio was a decrease of 67 basis points from 7.61% at December 31, 2021 to 6.94% at March 31, 2022, an 8.8% decrease.

•The Bank's capital is still robust with leverage and risk based capital ratios of 9.7% and 15.21%, respectively.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54

•Total loans, excluding Federal Paycheck Protection Program (“PPP”) loans and sold commercial participation loans, grew by 2.3%, or 9.5% annualized, during the first quarter to $3.66 billion at period end from $3.57 billion on December 31, 2021.

•Commercial loans, excluding PPP loans and sold commercial participation loans, grew by 3.3%, or 13.5% annualized, during the first quarter to a record $2.20 billion from $2.13 billion on December 31, 2021.

•Consumer loans grew by 3.7%, or 14.9% annualized, during the first quarter to a record $753.9 million at period end.

•The decline in residential mortgage loans slowed during the first quarter with a 0.2% reduction to $593.4 million at period end, as refinancing activity decreased and we experienced movement to adjustable rate products which are held on the balance sheet. Gain on sale of mortgage loans and mortgage warehouse income only constituted 4.7% of total revenue in the first quarter of 2022.

•Non–interest expense was $36.6 million in the quarter, or 2.03% of average assets on an annualized basis, compared to $39.4 million, or 2.09%, in the fourth quarter of 2021 and $32.2 million, or 2.20%, in the first quarter of 2021. As previously disclosed, acquisition–related and non–recurring Department of Labor (“DOL”) Employee Stock Ownership Plan (“ESOP“) settlement expenses totaled $2.8 million in the fourth quarter of 2021.

•The efficiency ratio for the period was 58.74% compared to 62.69% for the fourth quarter of 2021 and 57.03% for the first quarter of 2021. The adjusted efficiency ratio was 58.74% compared to 58.25% for the fourth quarter of 2021 and 57.97% for the first quarter of 2021. (See the “Non-GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio” table below.)

•As part of the Company’s annual branch performance review of Horizon Bank’s (the “Bank”) retail network, Horizon’s Board of Directors approved the permanent closure of seven branch locations in the second half of 2022. We expect to incur a one–time charge of approximately $432,000 with an earn–back period of approximately six months.

•Horizon’s in–market consumer and commercial deposit relationships, including those on–boarded as part of its branch acquisition near the end of the third quarter of 2021, combined with strategic pricing moves to manage deposit growth and runoff of higher–priced time deposits, contributed to continued improvement in the cost of interest bearing liabilities, which declined to 0.30% in the quarter, compared to 0.31% in the fourth quarter of 2021 and 0.50% in the first quarter of 2021.

•Asset quality remains favorable as evidenced by non–performing loans at 0.54% of total loans at period end and net charge–offs to average loans represented 0.00% for the first quarter of 2022.

Summary


	For the Three Months Ended
	March 31,			December 31,			March 31,
Net Interest Income and Net Interest Margin	2022			2021			2021
Net interest income	$	48,171		$	49,976		$	42,538
Net interest margin	2.99		%	2.97		%	3.29		%
Adjusted net interest margin	2.93		%	2.86		%	3.17		%

“Sequential quarter net interest margin expansion begins to illustrate the Company’s asset sensitive balance sheet positioning.” Mr. Dwight said. “We expect to see continued NIM improvement in 2022 driven by both rates and loan volume, along with deposit betas that we believe will remain in line with or better than in–footprint competition, given Horizon’s mix of commercial and retail relationships, strong marketplace positioning and conservative expectations for higher–priced deposit runoff.”

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


	For the Three Months Ended
	March 31,		December 31,		March 31,
Asset Yields and Funding Costs	2022		2021		2021
Interest earning assets	3.22	%	3.20	%	3.66	%
Interest bearing liabilities	0.30	%	0.31	%	0.50	%


	For the Three Months Ended
Non–interest Income and	March 31,		December 31,		March 31,
Mortgage Banking Income	2022		2021		2021
Total non–interest income	$	14,155	$	12,828	$	13,873
Gain on sale of mortgage loans	2,027		4,167		5,296
Mortgage servicing income net of impairment	3,489		300		213


	For the Three Months Ended
	March 31,			December 31,			March 31,
Non–interest Expense	2022			2021			2021
Total non–interest expense	$	36,610		$	39,370		$	32,172
Annualized non–interest expense to average assets	2.03		%	2.09		%	2.20		%


	For the Three Months Ended
	March 31,		December 31,		March 31,
Credit Quality	2022		2021		2021
Allowance for credit losses to total loans	1.41	%	1.51	%	1.56	%
Non–performing loans to total loans	0.54	%	0.53	%	0.68	%
Percent of net charge–offs to average loans outstanding for the period	0.00	%	0.04	%	0.01	%


Allowance for	December 31,			Net Reserve		March 31,
Credit Losses	2021			1Q22			2022
Commercial	$	40,775		$	(2,986)		$	37,789
Retail Mortgage	3,856			495			4,351
Warehouse	1,059			(4)			1,055
Consumer	8,596			717			9,313
Allowance for Credit Losses (“ACL”)	$	54,286		$	(1,778)		$	52,508
ACL / Total Loans	1.51		%				1.41		%
Acquired Loan Discount (“ALD”)	$	9,097		$	(769)		$	8,328

“Our 2.03% annualized non–interest expense to average assets continues to represent an improvement over the prior quarter and the first quarter supports our full–year 2022 target of less than 2% for this performance metric,” Mr. Dwight said. “Even with nationwide wage inflation and the ongoing operating costs associated with our branch acquisition last fall, we believe our scalable and technology–enabled model, along with our disciplined expense management culture and annual branch network review process, will enable us to achieve our target for the full year.”

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54

Income Statement Highlights

Net income for the first quarter of 2022 was $23.6 million, or $0.54 diluted earnings per share, compared to $21.4 million, or $0.49, for the linked quarter and $20.4 million, or $0.46, for the prior year period. This represents the highest quarterly net income in the Company’s history.

Adjusted net income for the first quarter of 2022 was $23.6 million, or $0.54 diluted earnings per share, compared to $23.7 million, or $0.54, for the linked quarter and $19.7 million, or $0.44, for the prior year period. Adjusted net income, which is not calculated according to generally accepted accounting principles (“GAAP”), is a measure that Horizon uses to provide a greater understanding of operating profitability. (See the “Non–GAAP Reconciliation of Net Income” table below.)

The increase in net income for the first quarter of 2022 when compared to the fourth quarter of 2021 reflects an increase in non–interest income of $1.3 million, a decrease in non–interest expense of $2.8 million and a decrease in income tax expense of $541,000. These items were offset by a decrease in net interest income of $1.8 million and a decrease in provision release of $685,000 for the first quarter of 2022 when compared to the fourth quarter of 2021.

Interest income includes the recognition of PPP loan interest and net loan processing fees totaling $457,000 in the first quarter of 2022, compared to $2.1 million in the linked quarter. On March 31, 2022, the Company had $141,000 in net deferred PPP loan processing fees outstanding and $6.7 million in PPP loans outstanding. PPP loan net deferred fees and loans outstanding at December 31, 2021 were $561,000 and $25.8 million, respectively.

First quarter 2022 income from the gain on sale of mortgage loans totaled $2.0 million, down from $4.2 million in the linked quarter and down from $5.3 million in the prior year period.

Non–interest expense of $36.6 million in the first quarter of 2022, including ongoing operating expenses associated with the September 2021 acquisition of 14 branches and low–cost deposits to expand Horizon’s Michigan franchise, reflected a $1.8 million decrease in other losses, a $814,000 decrease in salaries and employee benefits, a decrease of $258,000 in loan expenses and a decrease of $224,000 in professional fees, offset by an increase in occupancy expense of $357,000 and an increase in outside services and consultants of $268,000 from the linked quarter. As previously disclosed, acquisition–related and non–recurring DOL ESOP settlement expenses totaled $2.8 million in the fourth quarter of 2021.

The increase in net income for the first quarter of 2022 when compared to the same prior year period reflects an increase in net interest income of $5.6 million, a decrease in credit loss expense of $1.8 million and an increase in non–interest income of $282,000, offset by an increase in non–interest expense of $4.4 million and an increase in income tax expense of $89,000.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Non–GAAP Reconciliation of Net Income
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2021		2021		2021		2021
Net income as reported	$	23,563	$	21,425	$	23,071	$	22,173	$	20,422
Acquisition expenses	—		884		799		242		—
Tax effect	—		(184)		(166)		(51)		—
Net income excluding acquisition expenses	23,563		22,125		23,704		22,364		20,422
Credit loss expense acquired loans	—		—		2,034		—		—
Tax effect	—		—		(427)		—		—
Net income excluding credit loss expense acquired loans	23,563		22,125		25,311		22,364		20,422
Gain on sale of ESOP trustee accounts	—		—		(2,329)		—		—
Tax effect	—		—		489		—		—
Net income excluding gain on sale of ESOP trustee accounts	23,563		22,125		23,471		22,364		20,422
DOL ESOP settlement expenses	—		1,900		—		—		—
Tax effect	—		(315)		—		—		—
Net income excluding DOL ESOP settlement expenses	23,563		23,710		23,471		22,364		20,422
(Gain) / loss on sale of investment securities	—		—		—		—		(914)
Tax effect	—		—		—		—		192
Net income excluding (gain) / loss on sale of investment securities	23,563		23,710		23,471		22,364		19,700
Death benefit on bank owned life insurance (“BOLI”)	—		—		(517)		(266)		—
Net income excluding death benefit on BOLI	23,563		23,710		22,954		22,098		19,700
Prepayment penalties on borrowings	—		—		—		125		—
Tax effect	—		—		—		(26)		—
Net income excluding prepayment penalties on borrowings	23,563		23,710		22,954		22,197		19,700
Adjusted net income	$	23,563	$	23,710	$	22,954	$	22,197	$	19,700

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022		2021		2021		2021		2021
Diluted earnings per share (“EPS”) as reported	$	0.54	$	0.49	$	0.52	$	0.50	$	0.46
Acquisition expenses	—		0.02		0.02		0.01		—
Tax effect	—		—		—		—		—
Diluted EPS excluding acquisition expenses	0.54		0.51		0.54		0.51		0.46
Credit loss expense acquired loans	—		—		0.05		—		—
Tax effect	—		—		(0.01)		—		—
Diluted EPS excluding credit loss expense acquired loans	0.54		0.51		0.58		0.51		0.46
Gain on sale of ESOP trustee accounts	—		—		(0.05)		—		—
Tax effect	—		—		0.01		—		—
Diluted EPS excluding gain on sale of ESOP trustee accounts	0.54		0.51		0.54		0.51		0.46
DOL ESOP settlement expenses	—		0.04		—		—		—
Tax effect	—		(0.01)		—		—		—
Diluted EPS excluding DOL ESOP settlement expenses	0.54		0.54		0.54		0.51		0.46
(Gain) / loss on sale of investment securities	—		—		—		—		(0.02)
Tax effect	—		—		—		—		—
Diluted EPS excluding (gain) / loss on sale of investment securities	0.54		0.54		0.54		0.51		0.44
Death benefit on bank owned life insurance (“BOLI”)	—		—		(0.02)		(0.01)		—
Diluted EPS excluding death benefit on BOLI	0.54		0.54		0.52		0.50		0.44
Prepayment penalties on borrowings	—		—		—		—		—
Tax effect	—		—		—		—		—
Diluted EPS excluding prepayment penalties on borrowings	0.54		0.54		0.52		0.50		0.44
Adjusted diluted EPS	$	0.54	$	0.54	$	0.52	$	0.50	$	0.44

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022		2021		2021		2021		2021
Pre–tax income	$	27,102	$	25,505	$	27,127	$	25,943	$	23,872
Credit loss expense	(1,386)		(2,071)		1,112		(1,492)		367
Pre–tax, pre–provision net income	$	25,716	$	23,434	$	28,239	$	24,451	$	24,239

Pre–tax, pre–provision net income	$	25,716	$	23,434	$	28,239	$	24,451	$	24,239
Acquisition expenses	—		884		799		242		—
Gain on sale of ESOP trustee accounts	—		—		(2,329)		—		—
DOL ESOP settlement expenses	—		1,900		—		—		—
(Gain) / loss on sale of investment securities	—		—		—		—		(914)
Death benefit on BOLI	—		—		(517)		(266)		—
Prepayment penalties on borrowings	—		—		—		125		—
Adjusted pre–tax, pre–provision net income	$	25,716	$	26,218	$	26,192	$	24,552	$	23,325

Horizon’s net interest margin increased to 2.99% for the first quarter of 2022 compared to 2.97% for the fourth quarter of 2021. The increase in net interest margin reflects an increase in the yield on interest earning assets of two basis points and a decrease in the cost of interest bearing liabilities of one basis point. Interest income from acquisition–related purchase accounting adjustments was $903,000 lower during the first quarter of 2022 when compared to the fourth quarter of 2021.

Horizon’s net interest margin decreased to 2.99% for the first quarter of 2022 compared to 3.29% for the first quarter of 2021. The decrease in net interest margin reflects a decrease in the yield on interest earning assets of 44 basis points offset by a decrease in the cost of interest bearing liabilities of 20 basis points.

The net interest margin was impacted during the first quarter of 2022 and fourth quarter of 2021 by PPP loans that were originated. Horizon estimates that the PPP loans increased the net interest margin by 2 basis points for the first quarter of 2022 and 10 basis points for the fourth quarter of 2021, respectively. This assumes these PPP loans were not included in average interest earning assets or interest income and were primarily funded by the growth in non–interest bearing deposits.

The net interest margin was also impacted during the first quarter of 2022 and fourth quarter of 2021 by excess liquidity carried on the balance sheet through increased deposits. Horizon estimates that the excess liquidity compressed the net interest margin by 11 basis points for the first quarter of 2022 and 32 basis points for the fourth quarter of 2021, respectively. This assumes that the excess liquidity was not included in average interest earning assets or interest income and was excluded from non–interest bearing deposits.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Non–GAAP Reconciliation of Net Interest Margin
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Net interest income as reported	$	48,171		$	49,976		$	46,544		$	42,632		$	42,538
Average interest earning assets	6,800,549			6,938,258			6,033,088			5,659,384			5,439,634
Net interest income as a percentage of average interest earning assets (“Net Interest Margin”)	2.99		%	2.97		%	3.17		%	3.14		%	3.29		%

Net interest income as reported	$	48,171		$	49,976		$	46,544		$	42,632		$	42,538
Acquisition–related purchase accounting adjustments (“PAUs”)	(916)			(1,819)			(875)			(230)			(1,579)
Prepayment penalties on borrowings	—			—			—			125			—
Adjusted net interest income	$	47,255		$	48,157		$	45,669		$	42,527		$	40,959
Adjusted net interest margin	2.93		%	2.86		%	3.12		%	3.13		%	3.17		%

Net interest margin, excluding acquisition–related purchase accounting adjustments (“adjusted net interest margin”), was 2.93% for the first quarter of 2021, compared to 2.86% for the linked quarter and 3.17% for the first quarter of 2020. Interest income from acquisition–related purchase accounting adjustments was $916,000, $1.8 million and $1.6 million for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Lending Activity

Total loan balances were $3.72 billion, or $3.66 billion excluding PPP loans and sold commercial participation loans, on March 31, 2022. Total loans were $3.66 billion, or $3.57 billion excluding PPP loans and sold commercial participation loans, on December 31, 2021. During the three months ended March 31, 2022, commercial loans, excluding PPP loans and sold commercial participation loans, increased $70.9 million and consumer loans increased $26.6 million, offset by decreases in PPP loans of $19.1 million, loans held for sale of $8.8 million, sold commercial participation loans of $6.4 million mortgage warehouse loans of $3.9 million and residential mortgage loans of $1.0 million. PPP loan income was $457,000, $2.1 million and $3.2 million for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Following a recent review of commercial participation loan sold agreements, the Company determined that total loan balance amounts must include all commercial participations sold with a corresponding secured borrowing, as they do not qualify for sales treatment based on accounting guidelines. This resulted in revising December 31, 2021 net loan and borrowing line items on the balance sheet with the March 31, 2022 reporting. Net loan and borrowing line items for December 31, 2021 was $56.5 million of commercial participations sold and for March 31, 2022 was $50.5 million of commercial participations sold.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Loan Growth by Type, Excluding Acquired Loans
(Dollars in Thousands, Unaudited)
	March 31,		December 31,		Amount		QTD	Annualized
	2022		2021		Change		% Change	% Change
Commercial, excluding PPP loans and sold commercial participation loans	$	2,202,568	$	2,131,644	$	70,924	3.3%	13.5%
PPP loans	6,705		25,844		(19,139)		(74.1)%	(300.3)%
Sold commercial participation loans	50,054		56,457		(6,403)		(11.3)%	(46.0)%
Residential mortgage	593,372		594,382		(1,010)		(0.2)%	(0.7)%
Consumer	753,900		727,259		26,641		3.7%	14.9%
Subtotal	3,606,599		3,535,586		71,013		2.0%	8.1%
Loans held for sale	3,781		12,579		(8,798)		(69.9)%	(283.7)%
Mortgage warehouse	105,118		109,031		(3,913)		(3.6)%	(14.6)%
Total loans	$	3,715,498	$	3,657,196	$	58,302	1.6%	6.5%

Total loans, excluding PPP loans and sold commercial participation loans	$	3,658,739	$	3,574,895	$	83,844	2.3%	9.5%

Residential mortgage lending activity for the three months ended March 31, 2022 generated $2.0 million in income from the gain on sale of mortgage loans, decreasing $2.1 million from the fourth quarter of 2021 and $3.3 million from the first quarter of 2021. Total mortgage origination volume for the first quarter of 2022, including loans placed into the portfolio, totaled $118.9 million, representing a decrease of 20.9% from fourth quarter 2021 levels, and a decrease of 23.5% from the first quarter of 2021. As a percentage of total mortgage loan originations, 44% of the volume was from refinancings and 56% was from loans for new home purchases during the first quarter of 2022. Total origination volume of mortgage loans sold to the secondary market totaled $81.3 million, representing a decrease of 15.1% from the fourth quarter of 2021 and a decrease of 35.5% from the first quarter of 2021.

Gain on sale of mortgage loans and mortgage warehousing income was 4.7% of total revenue for the three months ended March 31, 2022, compared to 8.6% for the linked quarter and 13.8% for the three months ended March 31, 2021.

Deposit Activity

Total deposit balances were $5.85 billion on March 31, 2022 compared to $5.80 billion on December 31, 2021, an increase of $48.5 million.


Deposit Growth by Type, Excluding Acquired Deposits
(Dollars in Thousands, Unaudited)
	March 31,		December 31,		Amount		QTD	Annualized
	2022		2022		Change		% Change	% Change
Non–interest bearing	$	1,325,570	$	1,360,338	$	(34,768)	(2.6)%	(10.4)%
Interest bearing	3,782,644		3,711,767		70,877		1.9%	7.7%
Time deposits	743,283		730,886		12,397		1.7%	6.9%
Total deposits	$	5,851,497	$	5,802,991	$	48,506	0.8%	3.4%

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54

Expense Management


	Three Months Ended
	March 31,								December 31,
	2022								2021								Adjusted
Non–interest Expense	Actual			Acquisition & Non–Recurring Expenses		Adjusted			Actual			Acquisition & Non–Recurring Expenses		Adjusted			Amount Change		Percent Change
Salaries and employee benefits	$	19,735		$	—	$	19,735		$	20,549		$	(202)	$	20,347		$	(612)	(3.0)%
Net occupancy expenses	3,561			—		3,561			3,204			—		3,204			357		11.1%
Data processing	2,537			—		2,537			2,672			(1)		2,671			(134)		(5.0)%
Professional fees	314			—		314			562			(45)		517			(203)		(39.3)%
Outside services and consultants	2,525			—		2,525			2,197			(162)		2,035			490		24.1%
Loan expense	2,545			—		2,545			2,803			(83)		2,720			(175)		(6.4)%
FDIC insurance expense	725			—		725			798			(6)		792			(67)		(8.5)%
Other losses	168			—		168			1,925			(1,904)		21			147		700.0%
Other expense	4,500			—		4,500			4,660			(381)		4,279			221		5.2%
Total non–interest expense	$	36,610		$	—	$	36,610		$	39,370		$	(2,784)	$	36,586		$	24	0.1%
Annualized non–interest expense to average assets	2.03		%			2.03		%	2.09		%			1.95		%

Total non–interest expense was $2.8 million lower in the first quarter of 2022 when compared to the fourth quarter of 2021. The decrease was primarily due to a decrease in other losses of $1.8 million as a result of the $1.9 million ESOP settlement expense recorded in the fourth quarter of 2021 and a decrease in salaries and employee benefits expense of $814,000. Excluding acquisition–related expenses and non–recurring DOL ESOP settlement expenses, total non–interest expense increased $24,000 in the first quarter of 2022 when compared to the fourth quarter of 2021. (See the “Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio” table below for these non–GAAP calculations.)


	Three Months Ended
	March 31,			March 31,
	2022			2021
Non–interest Expense	Actual				Actual			Amount Change		Percent Change
Salaries and employee benefits	$	19,735			$	16,871		$	2,864	17.0%
Net occupancy expenses	3,561				3,318			243		7.3%
Data processing	2,537				2,376			161		6.8%
Professional fees	314				544			(230)		(42.3)%
Outside services and consultants	2,525				1,702			823		48.4%
Loan expense	2,545				2,822			(277)		(9.8)%
FDIC insurance expense	725				800			(75)		(9.4)%
Other losses	168				283			(115)		(40.6)%
Other expense	4,500				3,456			1,044		30.2%
Total non–interest expense	$	36,610			$	32,172		$	4,438	13.8%
Annualized non–interest expense to average assets	2.03		%		2.20		%

Total non–interest expense was $4.4 million higher in the first quarter of 2022 when compared to the first quarter of 2021. The increases in expenses was primarily due to an increase in salaries and employee benefits of $2.9 million, an increase in other expense of $1.0 million, an increase in outside services and consultants of $823,000 and an increase in net occupancy expenses of $243,000, offset by a decrease of $277,000 in loan expense and a decrease of $230,000 in professional fees.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54

Annualized non–interest expense as a percent of average assets was 2.03%, 2.09% and 2.20% for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. Annualized non–interest expense, excluding acquisition expenses and non–recurring DOL ESOP settlement expenses, as a percent of average assets was 2.03%, 1.95% and 2.20% for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. (See the “Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio” table below for these non–GAAP calculations.)

Income tax expense totaled $3.5 million for the first quarter of 2022, a decrease of $541,000 when compared to the fourth quarter of 2021 and an increase of $89,000 when compared to the first quarter of 2021.

Capital

The capital resources of the Company and the Bank exceeded regulatory capital ratios for “well capitalized” banks at March 31, 2022. Stockholders’ equity totaled $677.5 million at March 31, 2022 and the ratio of average stockholders’ equity to average assets was 9.79% for the three months ended March 31, 2022.

Tangible book value per common share (“TBVPS”) declined $1.03 in the first quarter of 2022 to $11.55 at period end, as unrealized net losses on securities available for sale (“AFS”) of $1.48 per common share reduced other comprehensive income (“OCI”) by $64.3 million in the first three months of this year. Fluctuations in the fair market value of AFS are widely expected to be recorded by banks in the first quarter of 2022.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and the Bank as of March 31, 2022.


	Actual				Required for Capital Adequacy Purposes				Required for Capital Adequacy Purposes with Capital Buffer				Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk–weighted assets)
Consolidated	$	733,695	15.21	%	$	385,869	8.00	%	$	506,452	10.50	%	N/A		N/A
Bank	685,676		14.22	%	385,665		8.00	%	506,186		10.50	%	$	482,082	10.00	%
Tier 1 capital (to risk–weighted assets)
Consolidated	679,232		14.08	%	289,401		6.00	%	409,985		8.50	%	N/A		N/A
Bank	631,214		13.09	%	289,249		6.00	%	409,769		8.50	%	385,665		8.00	%
Common equity tier 1 capital (to risk–weighted assets)
Consolidated	541,696		11.64	%	217,051		4.50	%	337,635		7.00	%	N/A		N/A
Bank	631,214		13.09	%	216,937		4.50	%	337,457		7.00	%	313,353		6.50	%
Tier 1 capital (to average assets)
Consolidated	679,232		9.70	%	280,233		4.00	%	280,233		4.00	%	N/A		N/A
Bank	631,214		9.03	%	279,627		4.00	%	279,627		4.00	%	349,534		5.00	%

Liquidity

The Bank maintains a stable base of core deposits provided by long–standing 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 repayment, investment security sales and maturities, 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”). At March 31, 2022, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $575.3 million in unused credit lines with various money center banks, including the FHLB and the Federal Reserve Discount Window. The Bank had approximately $2.3 billion of unpledged investment securities at March 31, 2022.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54

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, net interest margin, tangible stockholders’ equity, tangible book value per share, efficiency ratio, the return on average assets, the return on average equity and pre–tax, pre–provision net income. 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 Tangible Stockholders’ Equity and Tangible Book Value per Share
(Dollars in Thousands, Unaudited)

	March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2021		2021		2021		2021
Total stockholders’ equity	$	677,450	$	723,209	$	708,542	$	710,374	$	689,379
Less: Intangible assets	174,588		175,513		183,938		172,398		173,296
Total tangible stockholders’ equity	$	502,862	$	547,696	$	524,604	$	537,976	$	516,083
Common shares outstanding	43,572,796		43,547,942		43,520,694		43,950,720		43,949,189
Book value per common share	$	15.56	$	16.61	$	16.28	$	16.16	$	15.69
Tangible book value per common share	$	11.55	$	12.58	$	12.05	$	12.24	$	11.74

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022			2021			2021			2021			2021
Non–interest expense as reported	$	36,610		$	39,370		$	34,349		$	33,388		$	32,172
Net interest income as reported	48,171			49,976			46,544			42,632			42,538
Non–interest income as reported	$	14,155		$	12,828		$	16,044		$	15,207		$	13,873
Non–interest expense / (Net interest income + Non–interest income) (“Efficiency Ratio”)	58.74		%	62.69		%	54.88		%	57.73		%	57.03		%

Non–interest expense as reported	$	36,610		$	39,370		$	34,349		$	33,388		$	32,172
Acquisition expenses	—			(884)			(799)			(242)			—
DOL ESOP settlement expenses	—			(1,900)			—			—			—
Non–interest expense excluding acquisition and DOL ESOP settlement expenses	36,610			36,586			33,550			33,146			32,172
Net interest income as reported	48,171			49,976			46,544			42,632			42,538
Prepayment penalties on borrowings	—			—			—			125			—
Net interest income excluding prepayment penalties on borrowings	48,171			49,976			46,544			42,757			42,538
Non–interest income as reported	14,155			12,828			16,044			15,207			13,873
Gain on sale of ESOP trustee accounts	—			—			(2,329)			—			—
(Gain) / loss on sale of investment securities	—			—			—			—			(914)
Death benefit on BOLI	—			—			(517)			(266)			—
Non–interest income excluding (gain) / loss on sale of investment securities and death benefit on BOLI	$	14,155		$	12,828		$	13,198		$	14,941		$	12,959
Adjusted efficiency ratio	58.74		%	58.25		%	56.16		%	57.45		%	57.97		%

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022			2021			2021			2021			2021
Average assets	$	7,319,675		$	7,461,343		$	6,507,673		$	6,142,507		$	5,936,149
Return on average assets (“ROAA”) as reported	1.31		%	1.14		%	1.41		%	1.45		%	1.40		%
Acquisition expenses	—			0.05			0.05			0.02			—
Tax effect	—			(0.01)			(0.01)			—			—
ROAA excluding acquisition expenses	1.31			1.18			1.45			1.47			1.40
Credit loss expense acquired loans	—			—			0.12			—			—
Tax effect	—			—			(0.03)			—			—
ROAA excluding credit loss expense on acquired loans	1.31			1.18			1.54			1.47			1.40
Gain on sale of ESOP trustee accounts	—			—			(0.14)			—			—
Tax effect	—			—			0.03			—			—
ROAA excluding gain on sale of ESOP trustee accounts	1.31			1.18			1.43			1.47			1.40
DOL ESOP settlement expenses	—			0.10			—			—			—
Tax effect	—			(0.02)			—			—			—
ROAA excluding DOL ESOP settlement expenses	1.31			1.26			1.43			1.47			1.40
(Gain) / loss on sale of investment securities	—			—			—			—			(0.06)
Tax effect	—			—			—			—			0.01
ROAA excluding (gain) / loss on sale of investment securities	1.31			1.26			1.43			1.47			1.35
Death benefit on BOLI	—			—			(0.03)			(0.02)			—
ROAA excluding death benefit on BOLI	1.31			1.26			1.40			1.45			1.35
Prepayment penalties on borrowings	—			—			—			0.01			—
Tax effect	—			—			—			—			—
ROAA excluding prepayment penalties on borrowings	1.31			1.26			1.40			1.46			1.35
Adjusted ROAA	1.31		%	1.26		%	1.40		%	1.46		%	1.35		%

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022			2021			2021			2021			2021
Average common equity	$	716,341		$	719,643		$	724,412		$	706,652		$	697,401
Return on average common equity (“ROACE”) as reported	13.34		%	11.81		%	12.64		%	12.59		%	11.88		%
Acquisition expenses	—			0.49			0.44			0.14			—
Tax effect	—			(0.10)			(0.09)			(0.03)			—
ROACE excluding acquisition expenses	13.34			12.20			12.99			12.70			11.88
Credit loss expense acquired loans	—			—			1.11			—			—
Tax effect	—			—			(0.23)			—			—
ROACE excluding credit loss expense acquired loans	13.34			12.20			13.87			12.70			11.88
Gain on sale of ESOP trustee accounts	—			—			(1.28)			—			—
Tax effect	—			—			0.27			—			—
ROACE excluding gain on sale of ESOP trustee accounts	13.34			12.20			12.86			12.70			11.88
DOL ESOP settlement expenses	—			1.05			—			—			—
Tax effect	—			(0.17)			—			—			—
ROACE excluding DOL ESOP settlement expenses	13.34			13.08			12.86			12.70			11.88
(Gain) / loss on sale of investment securities	—			—			—			—			(0.53)
Tax effect	—			—			—			—			0.11
ROACE excluding (gain) / loss on sale of investment securities	13.34			13.08			12.86			12.70			11.46
Death benefit on BOLI	—			—			(0.28)			(0.15)			—
ROACE excluding death benefit on BOLI	13.34			13.08			12.58			12.55			11.46
Prepayment penalties on borrowings	—			—			—			0.07			—
Tax effect	—			—			—			(0.01)			—
ROACE excluding prepayment penalties on borrowings	13.34		%	13.08		%	12.58		%	12.61		%	11.46		%
Adjusted ROACE	13.34		%	13.08		%	12.58		%	12.61		%	11.46		%

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022			2021			2021			2021			2021
Average common equity	$	716,341		$	719,643		$	724,412		$	706,652		$	697,401
Less: Average intangible assets	176,356			179,594			174,920			173,905			174,785
Average tangible equity	$	539,985		$	540,049		$	549,492		$	532,747		$	522,616
Return on average tangible equity (“ROATE”) as reported	17.70		%	15.74		%	16.66		%	16.69		%	15.85		%
Acquisition expenses	—			0.65			0.58			0.18			—
Tax effect	—			(0.14)			(0.12)			(0.04)			—
ROATE excluding acquisition expenses	17.70			16.25			17.12			16.83			15.85
Credit loss expense acquired loans	—			—			1.47			—			—
Tax effect	—			—			(0.31)			—			—
ROATE excluding credit loss expense acquired loans	17.70			16.25			18.28			16.83			15.85
Gain on sale of ESOP trustee accounts	—			—			(1.68)			—			—
Tax effect	—			—			0.35			—			—
ROATE excluding gain on sale of ESOP trustee accounts	17.70			16.25			16.95			16.83			15.85
DOL ESOP settlement expenses	—			1.40			—			—			—
Tax effect	—			(0.23)			—			—			—
ROATE excluding DOL ESOP settlement expenses	17.70			17.42			16.95			16.83			15.85
(Gain) / loss on sale of investment securities	—			—			—			—			(0.71)
Tax effect	—			—			—			—			0.15
ROATE excluding (gain) / loss on sale of investment securities	17.70			17.42			16.95			16.83			15.29
Death benefit on BOLI	—			—			(0.37)			(0.20)			—
ROATE excluding death benefit on BOLI	17.70			17.42			16.58			16.63			15.29
Prepayment penalties on borrowings	—			—			—			0.09			—
Tax effect	—			—			—			(0.02)			—
ROATE excluding prepayment penalties on borrowings	17.70		%	17.42		%	16.58		%	16.70		%	15.29		%
Adjusted ROATE	17.70		%	17.42		%	16.58		%	16.70		%	15.29		%

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 28, 2022 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 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 5, 2022. The replay may be accessed by dialing 877–344–7529 from the United States, 855–669–9658 from Canada or 412–317–0088 from other international locations, and entering the access code 7430984.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.4 billion–asset 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’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.

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. 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 risk factors relating to the banking industry and the other factors detailed from time to time in Horizon’s reports filed with the Securities and Exchange Commission, including those described in Horizon’s Annual Report on Form 10–K and its quarterly reports on Form 10–Q. Further, statements about the effects of the COVID–19 pandemic on our business, operations, financial performance, and prospects may constitute forward–looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward–looking statements due to factors and future developments that are uncertain, unpredictable, and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties, and us. 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.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Financial Highlights
(Dollars in Thousands, Unaudited)

	March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2021		2021		2021		2021
Balance sheet:
Total assets	$	7,420,328	$	7,374,903	$	7,534,240	$	6,109,227	$	6,055,528
Interest earning deposits & federal funds sold	20,827		502,364		872,540		209,304		444,239
Interest earning time deposits	4,046		4,782		5,767		6,994		7,983
Investment securities	3,118,641		2,713,255		2,438,874		1,844,470		1,423,825
Commercial loans	2,259,327		2,176,959		2,173,200		2,104,627		2,177,858
Mortgage warehouse loans	105,118		109,031		169,909		205,311		266,246
Residential mortgage loans	593,372		594,382		603,540		559,437		581,929
Consumer loans	753,900		727,259		713,432		650,144		638,403
Earning assets	6,883,254		6,865,051		7,006,513		5,610,538		5,571,304
Non–interest bearing deposit accounts	1,325,570		1,360,338		1,324,757		1,102,950		1,133,412
Interest bearing transaction accounts	3,782,644		3,711,767		3,875,882		3,105,328		2,947,438
Time deposits	743,283		730,886		779,260		573,348		640,966
Borrowings	728,664		675,753		670,753		439,094		481,488
Subordinated notes	58,786		58,750		58,713		58,676		58,640
Junior subordinated debentures issued to capital trusts	56,850		56,785		56,722		56,662		56,604
Total stockholders’ equity	677,450		723,209		708,542		710,374		689,379

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022			2021			2021			2021			2021
Income statement:
Net interest income	$	48,171		$	49,976		$	46,544		$	42,632		$	42,538
Credit loss expense (recovery)	(1,386)			(2,071)			1,112			(1,492)			367
Non–interest income	14,155			12,828			16,044			15,207			13,873
Non–interest expense	36,610			39,370			34,349			33,388			32,172
Income tax expense	3,539			4,080			4,056			3,770			3,450
Net income	$	23,563		$	21,425		$	23,071		$	22,173		$	20,422

Per share data:
Basic earnings per share	$	0.54		$	0.49		$	0.53		$	0.50		$	0.46
Diluted earnings per share	0.54			0.49			0.52			0.50			0.46
Cash dividends declared per common share	0.15			0.15			0.15			0.13			0.13
Book value per common share	15.56			16.61			16.28			16.16			15.69
Tangible book value per common share	11.55			12.58			12.05			12.24			11.74
Market value – high	23.45			21.14			18.47			19.13			19.94
Market value – low	$	18.67		$	18.01		$	15.83		$	16.98		$	15.43
Weighted average shares outstanding – Basis	43,554,713			43,534,298			43,810,729			43,950,501			43,919,549
Weighted average shares outstanding – Diluted	43,734,556			43,733,416			43,958,870			44,111,103			44,072,581

Key ratios:
Return on average assets	1.31		%	1.14		%	1.41		%	1.45		%	1.40		%
Return on average common stockholders’ equity	13.34			11.81			12.64			12.59			11.88
Net interest margin	2.99			2.97			3.17			3.14			3.29
Allowance for credit losses to total loans	1.41			1.51			1.55			1.58			1.56
Average equity to average assets	9.79			9.64			11.13			11.50			11.75
Efficiency ratio	58.74			62.69			54.88			57.73			57.03
Annualized non–interest expense to average assets	2.03			2.09			2.09			2.18			2.20
Bank only capital ratios:
Tier 1 capital to average assets	9.03			8.50			8.38			8.79			8.81
Tier 1 capital to risk weighted assets	13.09			13.69			11.86			12.80			12.71
Total capital to risk weighted assets	14.22			14.72			12.97			14.09			13.86

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Financial Highlights
(Dollars in Thousands Except Ratios, Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Loan data:
Substandard loans	$	57,928		$	56,968		$	91,317		$	82,488		$	86,472
30 to 89 days delinquent	6,358			8,536			3,997			3,336			5,099

Non–performing loans:
90 days and greater delinquent – accruing interest	107			145			200			—			267
Trouble debt restructures – accruing interest	2,372			2,391			2,433			1,853			1,828
Trouble debt restructures – non–accrual	1,501			1,521			1,604			2,294			2,271
Non–accrual loans	16,133			14,962			25,137			18,175			20,700
Total non–performing loans	$	20,113		$	19,019		$	29,374		$	22,322		$	25,066
Non–performing loans to total loans	0.54		%	0.53		%	0.80		%	0.63		%	0.68		%


Allocation of the Allowance for Credit Losses
(Dollars in Thousands, Unaudited)

	March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2021		2021		2021		2021
Commercial	$	37,789	$	40,775	$	43,121	$	41,766	$	42,980
Residential mortgage	4,351		3,856		3,737		4,108		4,229
Mortgage warehouse	1,055		1,059		1,054		1,155		1,163
Consumer	9,313		8,596		8,867		8,620		8,814
Total	$	52,508	$	54,286	$	56,779	$	55,649	$	57,186


Net Charge–offs (Recoveries)
(Dollars in Thousands Except Ratios, Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Commercial	$	38		$	926		$	(25)		$	40		$	158
Residential mortgage	(10)			126			(29)			(23)			(65)
Mortgage warehouse	—			—			—			—			—
Consumer	108			360			36			22			115
Total	$	136		$	1,412		$	(18)		$	39		$	208
Percent of net charge–offs (recoveries) to average loans outstanding for the period	0.00		%	0.04		%	0.00		%	0.00		%	0.01		%

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Total Non–performing Loans
(Dollars in Thousands Except Ratios, Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Commercial	$	7,844		$	7,509		$	16,121		$	10,345		$	12,802
Residential mortgage	8,584			8,005			8,641			7,841			7,916
Mortgage warehouse	—			—			—			—			—
Consumer	3,685			3,505			4,612			4,136			4,348
Total	$	20,113		$	19,019		$	29,374		$	22,322		$	25,066
Non–performing loans to total loans	0.54		%	0.53		%	0.80		%	0.63		%	0.68		%


Other Real Estate Owned and Repossessed Assets
(Dollars in Thousands, Unaudited)

	March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2021		2021		2021		2021
Commercial	$	2,245	$	2,861	$	2,861	$	1,400	$	1,696
Residential mortgage	170		695		117		37		37
Mortgage warehouse	—		—		—		—		—
Consumer	5		5		29		46		—
Total	$	2,420	$	3,561	$	3,007	$	1,483	$	1,733

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Average Balance Sheets
(Dollars in Thousands, Unaudited)
	Three Months Ended						Three Months Ended
	March 31, 2022						March 31, 2021
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets
Interest earning assets
Federal funds sold	$	237,605	$	91	0.16	%	$	267,241	$	66	0.10	%
Interest earning deposits	20,673		24		0.47	%	25,527		31		0.49	%
Investment securities – taxable	1,646,525		7,391		1.82	%	410,063		1,451		1.44	%
Investment securities – non–taxable (1)	1,279,082		6,697		2.69	%	956,464		5,223		2.80	%
Loans receivable (2) (3)	3,616,664		37,879		4.26	%	3,780,339		40,818		4.39	%
Total interest earning assets	6,800,549		52,082		3.22	%	5,439,634		47,589		3.66	%
Non–interest earning assets
Cash and due from banks	104,676						85,269
Allowance for credit losses	(54,307)						(57,779)
Other assets	468,757						469,025
Total average assets	$	7,319,675					$	5,936,149

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits	$	4,478,621	$	1,496	0.14	%	$	3,524,103	$	2,343	0.27	%
Borrowings	503,846		1,043		0.84	%	365,586		1,231		1.37	%
Repurchase agreements	139,742		37		0.11	%	111,692		38		0.14	%
Subordinated notes	58,763		880		6.07	%	58,616		880		6.09	%
Junior subordinated debentures issued to capital trusts	56,807		455		3.25	%	56,571		559		4.01	%
Total interest bearing liabilities	5,237,779		3,911		0.30	%	4,116,568		5,051		0.50	%
Non–interest bearing liabilities
Demand deposits	1,322,781						1,063,268
Accrued interest payable and other liabilities	42,774						58,912
Stockholders’ equity	716,341						697,401
Total average liabilities and stockholders’ equity	$	7,319,675					$	5,936,149

Net interest income / spread			$	48,171	2.92	%			$	42,538	3.16	%
Net interest income as a percent of average interest earning assets (1)					2.99	%					3.29	%

(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.

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


Condensed Consolidated Balance Sheets
(Dollars in Thousands)

	March 31, 2022		December 31, 2021
	(Unaudited)
Assets
Cash and due from banks	$	120,954	$	593,508
Interest earning time deposits	4,046		4,782
Investment securities, available for sale	1,112,512		1,160,812
Investment securities, held to maturity (fair value $1,827,845 and $1,559,991)	2,006,129		1,552,443
Loans held for sale	3,781		12,579
Loans, net of allowance for credit losses of $52,508 and $54,286	3,659,209		3,590,331
Premises and equipment, net	93,075		93,441
Federal Home Loan Bank stock	24,242		24,440
Goodwill	154,572		154,572
Other intangible assets	20,016		20,941
Interest receivable	27,476		26,137
Cash value of life insurance	97,660		97,150
Other assets	96,656		80,753
Total assets	$	7,420,328	$	7,411,889

Liabilities
Deposits
Non–interest bearing	$	1,325,570	$	1,360,338
Interest bearing	4,525,927		4,442,653
Total deposits	5,851,497		5,802,991
Borrowings	728,664		712,739
Subordinated notes	58,786		58,750
Junior subordinated debentures issued to capital trusts	56,850		56,785
Interest payable	1,420		2,235
Other liabilities	45,661		55,180
Total liabilities	6,742,878		6,688,680
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 43,874,763 and 43,766,931 shares, Outstanding 43,572,796 and 43,547,942 shares	—		—
Additional paid–in capital	351,522		352,122
Retained earnings	380,700		363,742
Accumulated other comprehensive income	(54,772)		7,345
Total stockholders’ equity	677,450		723,209
Total liabilities and stockholders’ equity	$	7,420,328	$	7,411,889

Horizon Bancorp, Inc. Reports First Quarter 2022 EPS of $0.54


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,
	2022		2021		2021		2021		2021
Interest income
Loans receivable	$	37,879	$	41,171	$	40,392	$	39,236	$	40,818
Investment securities – taxable	7,506		6,491		4,565		2,528		1,548
Investment securities – non–taxable	6,697		6,456		5,911		5,656		5,223
Total interest income	52,082		54,118		50,868		47,420		47,589
Interest expense
Deposits	1,496		1,663		1,808		2,053		2,343
Borrowed funds	1,080		1,061		1,075		1,296		1,269
Subordinated notes	880		881		880		881		880
Junior subordinated debentures issued to capital trusts	455		537		561		558		559
Total interest expense	3,911		4,142		4,324		4,788		5,051
Net interest income	48,171		49,976		46,544		42,632		42,538
Credit loss expense (recovery)	(1,386)		(2,071)		1,112		(1,492)		367
Net interest income after credit loss expense (recovery)	49,557		52,047		45,432		44,124		42,171
Non–interest Income
Service charges on deposit accounts	2,795		2,510		2,291		2,157		2,234
Wire transfer fees	159		205		210		222		255
Interchange fees	2,780		3,082		2,587		2,892		2,340
Fiduciary activities	1,503		1,591		2,124		1,961		1,743
Gains / (losses) on sale of investment securities	—		—		—		—		914
Gain on sale of mortgage loans	2,027		4,167		4,088		5,612		5,296
Mortgage servicing income net of impairment	3,489		300		336		1,503		213
Increase in cash value of bank owned life insurance	510		547		534		502		511
Death benefit on bank owned life insurance	—		—		517		266		—
Other income	892		426		3,357		92		367
Total non–interest income	14,155		12,828		16,044		15,207		13,873
Non–interest expense
Salaries and employee benefits	19,735		20,549		18,901		17,730		16,871
Net occupancy expenses	3,561		3,204		2,935		3,084		3,318
Data processing	2,537		2,672		2,526		2,388		2,376
Professional fees	314		562		522		588		544
Outside services and consultants	2,525		2,197		2,330		2,220		1,702
Loan expense	2,545		2,803		2,645		3,107		2,822
FDIC insurance expense	725		798		279		500		800
Other losses	168		1,925		69		6		283
Other expenses	4,500		4,660		4,142		3,765		3,456
Total non–interest expense	36,610		39,370		34,349		33,388		32,172
Income before income taxes	27,102		25,505		27,127		25,943		23,872
Income tax expense	3,539		4,080		4,056		3,770		3,450
Net income	$	23,563	$	21,425	$	23,071	$	22,173	$	20,422
Basic earnings per share	$	0.54	$	0.49	$	0.53	$	0.50	$	0.46
Diluted earnings per share	0.54		0.49		0.52		0.50		0.46

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 27, 2022

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 the presentation materials 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. 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 risk factors relating to the banking industry and the other factors detailed from time to time in Horizon’s reports filed with the Securities and Exchange Commission (the “SEC”), including those described in Horizon’s Annual Report on Form 10-K for the year ended December 31, 2021 and other subsequent filings with the SEC. Further, statements about the effects of the COVID-19 pandemic on our business, operations, financial performance, and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable, and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties, and us. 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 41-56. 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 1Q22 Highlights Record Earnings • Record diluted EPS of $0.54, diluted • ROATE of 17.70%* and ROAA of 1.31% • Pre-tax, pre-provision net income* up 9.7% from the linked quarter and 6.1% from the prior year period Organic loan growth • Total loans up 2.3% or 9.5% annualized, ex. PPP and sold participation loans • Commercial loans up 2.9% or 12.0% annualized, ex PPP and sold participation loans • Consumer loans up 3.7% or 14.9% annualized • Residential mortgage down 0.2% or 0.7% annualized Disciplined expense management • Non-interest expense/average assets was 2.03% • Efficiency ratio 58.74% Sequential-quarter NIM expansion • 2.99% reported NIM up 2 bps from linked quarter • 2.93% adjusted NIM up 7 bps from linked quarter* * See Footnote Index and non-GAAP reconciliations in Appendix. ($000s except per share data) 1Q22 Change % vs. 4Q21 1Q21 Income Statement Net interest income $48,171 (3.6)% 13.2% Non-interest income $14,155 10.3% 2.0% Pre-tax, pre-provision net income* $25,716 9.7% 6.1% Reported net income $23,563 10.0% 15.4% Diluted EPS $0.54 10.2% 17.4% Efficiency ratio 58.74% (3.95)% 1.71% Return on Average Assets 1.31% 0.17% (0.09)% Return on Average Tangible Equity* 17.70% 1.96% 1.85% Balance Sheet Total loans (ex PPP & sold participations) $3,658,739 2.3% 7.0% Commercial loans (ex PPP & sold participations) $2,202,568 3.3% 14.4% Consumer loans $753,900 3.7% 18.1% Deposits $5,851,497 0.8% 23.9% Credit Quality Allowance for credit losses to total loans 1.41% (10) bps (15) Bps NPA ratio 0.54% 1 bps (14) Bps Net charge-offs to avg. loans for the period 0.00% (4) 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 Disciplined operating culture Compelling value supported by commitment to dividend Well-established long-term growth goals Very attractive Midwest markets Deliberate mix of businesses delivers very strong operational performance Why Horizon? A High-Performing Operator in Growth Markets 1.31% ROAA, 17.70% ROATE & 2.03% operating expenses/avg. assets YTD Superior return metrics include GAAP ROAA, ROAE and operating expenses/avg. assets Closed 10 branch in 2021 and plan an additional 7 branch closures in 2022 Additional closings contributing to sustained tech/digital investments and consistently low expense/assets, efficiency and compensation/ FTE ratios 162% P/TBV and 9.2x P/E (TTM) with 3.2% dividend yield Recent HBNC share price presents compelling value, while unbroken 30-year record of quarterly cash dividends to shareholders continues in 2022 with an annual dividend amount of 60¢/share, representing a 27.8% payout ratio 17% average asset growth 2017-2021 In line with long-term goals of meaningfully outpacing GDP and industry, ~50/50 growth organic/acquired, and organic growth ≥3x GDP 30 minutes from downtown Chicago and Attractive Midwest Markets Illinois exodus, Indiana’s infrastructure and business-friendly climate, and Indiana and Michigan’s major global employers, entrepreneurs and research universities all contribute to favorable economic trends in Horizon markets >50% of total loans comprise commercial lending Commercial loan portfolio, excluding PPP loans, increased approximately $65 million, or 12% annualized, during Q1 2022 (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation)

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 Craig M. Dwight Chairman & CEO • 43 Years of Banking Experience • 23 Years as President or CEO of Bank Mark E. Secor EVP & Chief Financial Officer • 33 Years of Banking and Public Accounting Experience • 13 Years with Horizon as CFO and EVP of Horizon Kathie A. DeRuiter EVP & Senior Operations Officer • 32 Years of Banking and Operational Experience • 21 Years as Senior Bank Operations Officer Todd A. Etzler EVP & Corporate Secretary & General Counsel • 30 Years of Corporate Legal Experience and 11 years of General Counsel Experience • 4 Years as SVP and General Counsel Seasoned Management Team Lynn M. Kerber EVP & Chief Commercial Banking Officer • 31 Years of Banking Experience • 4 Years with Horizon as Senior Commercial Credit Officer Noe S. Najera EVP, Senior Retail & Mortgage Lending Officer • 20 Years of Banking Experience • 6 Years with Horizon, 3 Years as SVP Retail Lending * As of April 1, 2022

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 History of Profitable Growth Positioned Well for Future Organic Growth $0.72 $0.76 $0.91 $1.13 $1.22 $1.26 $1.31 $1.39 $1.40 $1.55 $1.85 $1.76 $2.08 $2.65 $3.14 $3.96 $4.25 $5.24 $5.89 $7.36 $7.42 $5 $7 $7 $7 $7 $8 $9 $9 $10 $13 $20 $20 $18 $21 $24 $33 $53 $67 $68 $87 $90 - 10 20 30 40 50 60 70 80 90 100 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 March '22 TTM Total Assets ($B) Net Income ($M) CAGRs 2002 through 2021 Total Assets – 13.0% Net Income – 20.0% 7 12 15 Organic Expansions M&A Transactions

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 * U.S. Bureau of Economic Analysis, retrieved from FRED, Federal Reserve Bank of St. Louis, fred.stlouisfed.org, April 18, 2022. Built to Outpace GDP & Industry Over Long-Term Assets Grew 29% ex. PPP During 2021 23% 5% 21% 23% 8% 3% 4% 6% 1% 10% 20% -5% 18% 28% 18% 26% 7% 24% 12% 25% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 HBNC Annual Asset Growth, ex. PPP PPP Contribution to HBNC Annual Asset Growth GDP Annual Growth* All Commercial Bank Annual Asset Growth* Well-Established Long-Term Goals Meaningfully outpace GDP and industry ~50/50 growth organic/acquired Organic growth of ≥3x GDP growth 2012 - 2021 2017 - 2021 20% average asset growth 4.7x GDP 3.3x banks 24% average asset growth 4.9x GDP 3.3x banks

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 Multiple Revenue Streams Diversifies Risk Diversified & Attractive Footprint E X C E P T I O N A L S E R V I C E • Q U A L I T Y A D V I C E ® 9 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 78 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, University of Michigan and Michigan State University Note: Total loan figures for Indiana and Michigan are as of 3/31/22 and do not include Mortgage Warehouse. INDIANA 3/31/22 Loans: $2.0B 56% of Loans MICHIGAN 3/31/22 Loans: $1.6B 44% of Loans OHIO ILLINOIS WISCONSIN KENTUCKY $1.6B IN LOANS $2.0B IN 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 ® 10 Michigan City, IN / La Porte, IN (Legacy) Indianapolis, IN (Growth) Northwest Indiana (Growth) Lafayette, IN (Growth) Southwest Michigan* (Growth) $1.3B Deposits $687M Deposits $609M Deposits $330M Deposits$501M Deposits 8 Branches 8 Branches 11 Branches 6 Branches8 Branches • Similar culture and economic base to legacy markets in Northern Indiana • Grand Rapids one of the most attractive markets in the Midwest • Purdue University collaborates with contiguous cities of Lafayette and West Lafayette • Subaru expanding facilities • Double commuter track addition to the South Shore train lines • High cost of living in Chicago • Population density of Chicago • Greater Indianapolis area exhibits strong growth • Significant manufacturing, healthcare, and education industries • Over $1.5B in public and private investments since 2012 • Double commuter track addition to the South Shore train lines Source: S&P Global Market Intelligence. Note: Core market demographics reflect MSA data. Deposit data as of 6/30/21. *Southwest Michigan defined as the MSAs of Niles, Grand Rapids-Kentwood and Kalamazoo-Portage. Demographic data weighted by HBNC deposits. Attractive & Stable Midwest Markets Top 5 Markets by Deposits Michigan City, IN La Porte, IN Indianapolis, IN Northwest Indiana Southwest Michigan* Lafayette, IN Median HHI $53,255 $65,306 $74,285 $58,856 $59,404 ’20 – ’25 HHI Growth 6.8% 11.2% 11.5% 11.8% 10.9% ’20 – ’25 Pop. Growth 0.12% 3.81% 0.08% 1.02% 3.86%

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 ® Digital Banking Excellence Sophisticated Internal Capabilities Supported by Best-in-Class Third Parties 11 NEW IN 2022 • Online deposit accounting opening platform to include time deposit, IRA and HSA accounts • Encompass® digital mortgage initiative will expand residential mortgage lending to 23 states • Develop real-time API automations through data and system enhancements to anticipate customer needs and expand relationships • Enhance capabilities within the mobile banking app to include account opening, in- branch appointments and more • Use data to expand customer segmentation and profitability models In-house CRM platform allows Horizon to remain nimble • Data Warehouse combined with transaction analysis from Core allows us to better anticipate customers’ needs and develop targeted marketing In-house core and prior tech investments are true competitive advantages • Prior investments to build out internal capabilities ensures that Horizon’s technology budget is focused on enhancing the customer experience and efficiency of its team of Advisors in cost effective manner Shifting Tech Spend to Strategic Customer & Employee Facing Applications 9% 5% 17% 18% 43% 25% 15% 14% 16% 38% 0% 20% 40% 60% 80% 100% 2018 2021 Core Data Communication Remote Delivery Infrastructure Strategic Applications Leveraging third party relationship to surround cost effective in-house Core • Third parties like Nintex, Fox Trot and Nautilus automate workflows for historically manual tasks, reducing cost and waste while sending direct updates to our systems • Automation provides Horizon’s Advisors targeted, current information and more time with customers Growing customer base digitally and efficiently • 20% of accounts opened online in 1Q22, up from 9% in 4Q20

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 ® Community Banking at Scale Efficient Utilization of Talent, Technology & Branch Network 12 50 50 50 60 65 81 32 32 46 56 62 63 74 73 78 665 701 716 839 788 900 0 200 400 600 800 1000 - 50 100 150 200 250 2016 2017 2018 2019 2020 2021 Evolving Multi-Channel Delivery ATMs ITMs Branches Employees $5.4 $5.8 $6.0 $6.5 $7.3 $8.7 $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 - 150,000 300,000 450,000 600,000 750,000 900,000 2016 2017 2018 2019 2020 2021 M ill io n s Technology Meeting Customer Demands & Enhancing Efficiency of Team Digital Transactions Branch Transactions Total Assets / Employee Technology enhances Advisors’ ability to serve customers and enhance bottom-line • Video banking team serves multiple markets through robust network of 46 interactive teller machines (ITMs) • ITMs proved to be valuable and scalable amid the pandemic, with 14 new ITMs rolled out ahead of 2021 branch acquisition • 86% of online chats answered by bots, freeing Advisors to provide more value-added services to customers • Three bank owned and operated Communication Centers supported by branch staff as needed • Investments in technology improve efficiency as measured by growth in assets per employee from $5.4 million in 2016 to $8.7 million in 2021

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 Productive Use of Capital Deploying capital through productive acquisitions and to drive organic growth • Completed acquisition of 14 Michigan branches and associated deposits and loans in 3Q21, adding mass and scale to Horizon’s Midland market and extending its footprint into attractive markets in the northern and central regions of Michigan’s Lower Peninsula • Investing in commercial lenders and consumer platforms to leverage capital through organic loan growth Longstanding dividend • 30+ years of uninterrupted quarterly cash dividend • Horizon increased its quarterly dividend during the first quarter of 2021 by 8.3% to $0.13 per share and by 15.4% to $0.15 per share during the third quarter of 2021, resulting in ninth dividend increase in the last 10 years • Current implied annualized dividend yield of 3.2% as of March 31, 2022 • Strong cash position at the holding company represents approximately 6 quarters of the current dividend plus fixed costs Strong share repurchase authority • 1.45 million shares available for repurchase under current buyback program authorization FUTURE OUTLOOK Targeted dividend payout ratio of 25-35% 50/50 mix of organic and acquired growth Continue to seek opportunities to leverage capital Continue stock repurchases

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 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 ® 15 $ M $24.2 $24.5 $28.2 $23.4 $25.7 $19.7 $22.2 $23.0 $23.7 $23.6 $0.44 $0.50 $0.52 $0.54 $0.54 1Q21 2Q21 3Q21 4Q21 1Q22 Adj. Net Income(1) Pre-tax, Pre-provision Income Adj. Net Income Adj. EPS 13.56% 13.94% 14.34% 14.45% 14.56% 1Q21 2Q21 3Q21 4Q21 1Q22 Adj. PTPP ROACE(1) Adj. PTPP ROACE $41.0 $42.5 $45.7 $48.2 $47.3 3.17% 3.13% 3.12% 2.86% 2.93% 1Q21 2Q21 3Q21 4Q21 1Q22 Adj. Net Interest Income(1) Adj. Net Interest Income Adj. NIM $ M (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) 15.29% 16.70% 16.58% 17.42% 17.70% 1Q21 2Q21 3Q21 4Q21 1Q22 Adj. ROATE(1) Adj. ROATE Strong Core Earnings

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 ® 16 Asset Sensitive Balance Sheet Liquidity Moved to Earning Assets • Of the $1.9 billion of adjustable rate loans, $1.1 billion adjust with a rate change to their index • Deposit BETA’s range from 4.0% for consumer deposits to 45.0% on money market accounts and public funds • Base increased as asset sensitivity decreased when low yielding cash moved to investments and loans * Based on 12-month parallel rate shock as of September 30, 2021 and March 31, 2022. $189 $192 $202 $212 $222 $203 $206 $207 $208 $210 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% $170 $180 $190 $200 $210 $220 $230 Base 100 bp 200 bp 300 bp 400 bp M ill io n s NII Volatility* 9/30/21 NII 3/31/22 NII 9/30/21 % Impact on NII 3/31/22 % 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 ® 3.66% 3.71% 3.63% 3.61% 3.58% 3.60% 3.59% 3.43% 3.46% 3.61% 3.67% 3.49% 3.44% 3.35% 3.27% 3.44% 3.17% 3.13% 3.12% 2.86% 2.93% 0.48% 0.50% 0.55% 0.63% 0.70% 0.82% 0.93% 1.07% 1.19% 1.13% 1.10% 1.04% 0.95% 0.60% 0.53% 0.45% 0.40% 0.35% 0.30% 0.25% 0.24% 0.80% 1.05% 1.25% 1.29% 1.53% 1.80% 2.01% 2.28% 2.50% 2.50% 2.30% 1.83% 1.40% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.29% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Net Interest Margin Adj. NIM (1) Adj. Cost of Core Funds (1) Avg. Fed Funds Rate (2) • Excess liquidity carried on the balance sheet compressed the first quarter margin ~ 11bps • Loan growth, cash deployed to higher yielding assets and increasing interest rates moving net interest margin higher 17 (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) (2) Source: S&P Global Market Intelligence. Considerable Upside to Net Interest Margin

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 ® Federal agency CMO, 3% State and municipal, 50% Federal agency MBS, 16% Private labeled MBS, 4% U.S. Treasury, 19% Corporate, 8% Total Investments at 3/31/22 $3.1B 18 • $3 billion investment portfolio is expected to be maintained during 2022 • Book yield of 2.23%, effective duration of 6.8 years • $400 million of cash flows over the next two years with book yields rolling off lower than the portfolio yield • $3.12 billion beginning 2nd quarter balance, average balance during the fourth quarter was $2.93 billion, increasing higher yielding earning assets Investment Portfolio Significant Contribution to Interest Income Federal agency CMO, 4% State and municipal, 55% Federal agency MBS, 23% Private labeled MBS, 5% U.S. Treasury, 4% Corporate, 9% Total Investments at 12/31/21 $2.7B

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 ® 19 • Other Comprehensive Income (“OCI”) loss reduced Tangible Common Equity (“TCE”) by 67bps in the first quarter • We have the intent and ability to hold the investments to maturity and no plans to sell • Cashflows can be used to fund future loan growth as needed • Retained earnings and investments moving down the curve would earnback capital loss in approximately three quarters • No impact to regulatory capital ratios • The jump in longer term interest rates resulted in an unrealized loss on available for sale (“AFS”) investments that was in line with a rate move of over 100bps • With an additional 100bp shock to the AFS investments over the next quarter, TCE is estimated to be 6.54%, or another 40bp decline from the first quarter • In the fourth quarter, we moved selected AFS investments to held to maturity (“HTM”) investments, at March 31, 2022, 64% of investments were HTM • Bank capital is strong and sufficient to fund growth and will not restrict the ability for merger or share repurchase activities • OCI only considers AFS investments and derivatives, the economic value of equity (“EVE”) increased over the fourth quarter when deposits are included in the valuations Quick Earnback of Other Comprehensive Income

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 23% Interest bearing(1) 64% CDs 13% 20 • In-market relationships, strategic pricing and runoff of higher-priced time deposits, contributed to continued reduction in total deposit cost to 0.10% • Account and deposit retention data very strong to date Average Cost(1) Average Deposits ($000s) 1Q 2022 Average Balances 4Q 2021 Average Balances 1Q 2022 (QTD) 4Q 2021 (QTD) Non-interest bearing $1,322,781 $1,366,621 0.00% 0.00% Interest bearing (excluding CDs) $3,745,244 $3,793,949 0.07% 0.08% Time Deposits (CDs) $733,377 $750,040 0.47% 0.49% Total Deposits $5,801,402 $5,910,610 0.10% 0.11% (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) Strong Low Cost Core Deposits Total Deposits at 3/31/22 $5.9B

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 ® 57.0% 57.7% 54.9% 62.7% 58.7% 58.0% 57.5% 56.2% 58.3% 58.7% 1Q21 2Q21 3Q21 4Q21 1Q22 Efficiency Ratio Adj. Efficiency Ratio • Annualized non-interest expense was 2.03% of average assets, supporting full year 2022 target of less than 2% • Adjusted efficiency ratio steady at 58.74%(1) • Planned 2022 branch rationalization payback in approximately six months after estimated one time charges of approximately $432,000 21 Efficiency Ratio(1) 1Q ’22 Highlights (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) Focus on Expense Control 2.20% 2.16% 2.05% 1.95% 2.03% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 1Q21 2Q21 3Q21 4Q21 1Q22 Other Loan Expense Outside Services & Consultants Professional Fees Data Processing Net Occupancy Expenses Salaries & Employee Benefits Annualized Non-Interest Expense to Average Assets Non-interest Expense Breakout ($M)(1)

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 ® Loan Portfolio Review 22

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 ® Northern Indiana, 19% Central Indiana, 30% Other, 3% Michigan, 48% Geography at 3/31/22 Non-Owner Occupied Real Estate, 49.4% C&I, 23.1% Owner Occ. Real Estate, 23.7% Agriculture, 2.3% Develop./Land, 1.1% Res. Spec. Homes, 0.4% Category at 3/31/22 $2.3 billion in Total Commercial Loans Accelerating Commercial Loan Growth 13.5% Annualized Growth in 1Q22 23 • Commercial loan portfolio, excluding PPP and sold participation loans, increased approximately $70.9 million, or 13.5% annualized, during Q1 2022. • Net funded new commercial loan growth was $132 million for Q1 2022 an increase from $127 million for Q4 2021, continuing recent quarterly growth trends. • Addition of 8 commercial lenders in the last 12 months in growth markets in Southwest and Southeast Michigan and Northwest Indiana. • Commercial pipeline of approximately $156 million entering Q2 2022. Q1 2022 pipeline of $120 million grew to $193 million in new loans closed with $132 million funded.

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 • Excellent Production in 2021 and Q1 2022 • Production – 2021 $397M, Q1 2022 $147M • Consumer loans increased 3.7%, or 14.9% annualized, during Q1 2022 • Leverage 34 new Indirect Dealerships in the Northern Michigan market • Expanded Mortgage Broker program • Increased marketing spend for HELOC loans increase usage of line, balance transfers, etc. • Holding Asset Quality to Historical Norms • 99.6% secured consumer loans • 96.4% prime, with credit scores ≥700 for 86.7% of portfolio and <640 for 3.6% • HELOC combined LTV limited to 89.9% • Low delinquency at 0.45% and YTD net charge-offs less than 1 basis point Indirect Auto, 52.6% Direct Auto, 4.1% Home Equity Term, 4.8% HELOCs, 34.3% RV & Boat, 3.3% Unsecured, 0.4% Other, 0.5% Total Outstanding at 3/31/22 $754M Excellent Consumer Loan Growth 14.9% Annualized Growth in 1Q22

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 Jumbo, 45.8% Rental, 1.0% Conforming, 47.3% Construction, 5.9% Total Outstanding at 3/31/22 $593M • 68% of production sold YTD • Gain on sale of mortgage loans (“GOS”) and mortgage warehousing income constituted 4.7% of total 1Q22 revenue, with GOS income of $2.0 million • Re-positioned for current marketplace opportunities • Expanded geographic footprint to over 20 states for saleable product • Beating MBA 41% and FNMA 39% projected YOY production decreases at only 24% • Hired two experienced originators to cover new Northern Michigan markets • Strong construction loan program to take advantage of fast growing new construction segment of market • Recently installed state of the art end-to-end loan origination system, creating internal efficiencies and providing user friendly mobile and on-line capabilities • Federal Housing Agency increased the conforming loan limit to $647k as of 1/1/2022, providing target market opportunities to refinance Jumbo ARM’s • Portfolio mortgages • Underwriting to Fannie Mae guidelines • Full documentation of employment, income and asset verification • 47.1% of mortgages held in portfolio are ARMs • 91.8% prime with credit score ≥670 Prime Mortgage Loan Portfolio Outperforms MBA 2022 Outlook

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 ® $208 $39 $1,412 $136 0.01% 0.04% 1Q21 2Q21 3Q21 4Q21 1Q22 Net Charge Offs NCOs NCOs/Average Loans $ 0 0 0 s $25,066 $22,322 $29,374 $19,019 $20,113 0.68% 0.63% 0.80% 0.53% 0.54% 1Q21 2Q21 3Q21 4Q21 1Q22 Non-Performing Loans NPLs (period end) NPLs/Loans (period end) $ 0 0 0 s $367 -$1,492 $1,112 -$2,071 -$1,386 1Q21 2Q21 3Q21 4Q21 1Q22 $ 0 0 0 s 26 CECL $57,186 $55,649 $56,779 $54,286 $52,508 1.56% 1.58% 1.55% 1.51% 1.41% 1Q21 2Q21 3Q21 4Q21 1Q22 ACL ACL/Loans Strong Asset Quality Metrics Allowance for Credit Losses (“ACL”) (CECL Implementation 1Q20) $ 0 0 0 s Credit Loss Expense (CECL Implementation 1Q20) 1Q22 ACL/Loans excluding PPP Loans = 1.42% 1Q22 ACL/Loans excluding PPP & Warehouse Loans = 1.46%

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 Key Franchise Highlights Positioned well for growth in 2022 and 2023, expansion of consumer dealer network, 20% increase in CLOs, 14 offices acquired and closed 10 offices in 2021 and plan to close 7 in 2022 Excess liquidity allows for lower deposit betas, and provides competitive edge on loan pricing. Growth oriented Midwest markets with balanced industrial bases and population inflows Low Risk Profile – High quality balance sheet with strong liquidity – approximately $3.2 billion of cash and securities as of 3/31/22 Robust capital position 14.1% Tier 1 and 15.2% Total RBC as of 3/31/22 Building for loan growth, with complementary counter-cyclical revenue streams Historical run rate demonstrates strong core operating earnings 30-year unbroken quarterly cash dividend record, with strong cash position at the holding company and ability to dividend a significant amount of cash from the bank

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 ® 2022 Goals E X C E P T I O N A L S E R V I C E • Q U A L I T Y A D V I C E ® 28 10-14% ANNUAL COMMERCIAL LOAN GROWTH Excluding PPP loans <2.00% ANNUAL EXPENSES TO AVERAGE ASSETS RATIO >1.30% ROAA >12.5% ROAE NET INTEREST INCOME $ GROWTH 10-14% ANNUAL CONSUMER LOAN GROWTH 15-18% MODEST REDUCTION IN MORTGAGE ORIGINATIONS Exceeding industry 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 ® 29 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 (1) Net Reserve Build is equal to the provision for credit losses net of net charge-offs/recoveries. Stable Credit Loss Reserves ($000s, unaudited) 12/31/21 Net Reserve Build(1) 1Q22 3/31/22 Commercial $ 40,775 $ (2,986) $ 37,789 Retail Mortgage 3,856 495 4,351 Warehousing 1,059 (4) 1,055 Consumer 8,596 717 9,313 Allowance for Credit Losses $ 54,286 $ (1,778) $ 52,508 ACL/Total Loans 1.51% 1.41% Acquired Loan Discount $ 9,097 $ (769) $ 8,328

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, $2,259M, 61%Residential Mortgage, $593M, 16% Consumer, $754M, 20% Mortgage Warehouse, $105M, 3% Held For Sale, $4M, 0% 31 Gross Loans at 3/31/22 $3.7B Diversified & Granular Loan Portfolio Commercial Loans by Industry ($M) 3/31/22 Balance % of Commercial Portfolio % of Total Loan Portfolio Lessors – Residential Multi Family $227 10.0% 6.1% Office (except medical) 162 7.2% 4.4% Hotel 161 7.1% 4.3% Individual and Other Services 153 6.8% 4.1% Health Care, Educational & Social 150 6.6% 4.0% Lessors – Student Housing 145 6.4% 3.9% Real Estate Rental & Leasing 138 6.1% 3.7% Retail 137 6.1% 3.7% Manufacturing 100 4.4% 2.7% Warehouse/Industrial 90 4.0% 2.4% Finance & Insurance 88 3.9% 2.4% Construction 87 3.9% 2.3% Retail Trade 75 3.3% 2.0% Medical Office 69 3.1% 1.9% Restaurants 67 3.0% 1.8% Lessors – Residential 1–4 Family 53 2.3% 1.4% Leisure and Hospitality 49 2.2% 1.3% Mini Storage 46 2.0% 1.2% Professional & Technical Services 46 2.0% 1.2% Government 33 1.5% 0.9% Transportation & Warehousing 33 1.5% 0.9% Farm Land 32 1.4% 0.9% Wholesale Trade 25 1.1% 0.7% Agriculture 19 0.8% 0.5% Other 74 3.3% 2.0% Total $2,259 100.0% 60.7%

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% 2% 2% 3% 4% 6% 7% 7% 7% 10% All Others Farm Land Mini Storage Lessors - Residential 1-4 Medical Office Warehouse/ Industrial Retail Lessors Student Housing Motel Office (except medical) Lessors - Residential Multi Note: Data as of 3/31/22 1% 1% 1% 1% 2% 2% 2% 2% 3% 4% 5% Transportation & Warehousing Construction Professional & Technical Services All Others Restaurants Leisure and Hospitality Manufacturing Retail Trade Individuals and Other Services Health Care, Edu. Social Assist. Real Estate Rental & Leasing 1% 1% 1% 1% 1% 1% 1% 2% 2% 3% 3% 4% 4% Transportation & Warehousing Agriculture Professional & Technical Services Retail Trade All Others Restaurants Real Estate Rental & Leasing Government Manufacturing Construction Health Care, Educational Social Assist. Finance & Insurance Individuals and Other Services 32 Non-Owner Occupied CRE – % of Total Commercial Loans Owner Occupied CRE – % of Total Commercial Loans 52% of Total Commercial Loans $1.1 billion 24% of Total Commercial Loans $0.5 billion C&I Loans – % of Total Commercial Loans 24% of Total Commercial Loans $0.5 billion Low Levels of Concentrated Exposure Commercial Portfolio By Industry Type

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 loans: • 63% fixed / 37% variable • 24% of variable rate commercial loans have floors, 55% of which are at their floor • PPP loans increased Q1 2022 loan yield ~ 2bps • PPP loans increased Q4 2021 loan yield ~ 16bps Retained mortgage loans: • 53% fixed / 47% variable • 93% of variable rate mortgage loans have floors, 15% of which are at their floor Consumer loans: • 65% fixed / 35% variable • 65% of variable rate consumer loans have floors, 58% of which are at their floor 33 Stable Loan Yields $3.7 $4.0 $4.0 $4.0 $3.8 $3.6 $3.5 $3.6 $3.6 5.03% 4.54% 4.39% 4.72% 4.39% 4.43% 4.56% 4.52% 4.26% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Yield on Loans (%) / Total Average Loans ($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 ® 11.1% 11.6% 12.0% 11.3% 12.0% 11.6%11.2% 11.8% 12.2% 12.0% 12.1% 12.1% 2017 2018 2019 2020 2021 1Q22 9.9% 10.1% 10.5% 10.7% 9.1% 9.7%9.7% 10.0% 10.2% 9.1% 8.9% 8.9% 2017 2018 2019 2020 2021 1Q22 12.9% 13.4% 14.0% 14.9% 15.7% 15.2% 13.1% 13.5% 13.6% 14.3% 14.2% 14.2% 2017 2018 2019 2020 2021 1Q22 Source: S&P Global Market Intelligence. Note: Company closed the acquisition of Salin Bancshares, Inc. in March 2019. 34 TCE / TA (%) Leverage Ratio (%) Total RBC Ratio (%) 4.0% Adequate + Buffer 7.0% KBW Regional Bank Index Median - MRQ Robust Capital Foundation 10.5% HBNC Ratio 8.5% 8.8% 9.3% 9.1% 7.6% 6.9% 9.1% 9.2% 9.6% 8.6% 8.3% 8.3% 2017 2018 2019 2020 2021 1Q22 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 ® 35 (1) Footnote Index included in Appendix (see slide 54 for non-GAAP reconciliation) (2) As calculated by S&P Global Market Intelligence. Historical Financials ($M except per share data) 2016 2017 2018 2019 2020 2021 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 Balance Sheet: Total Assets $3,141 $3,964 $4,247 $5,247 $5,887 $7,375 $6,056 $6,109 $7,534 $7,375 $7,420 Gross Loans $2,144 $2,838 $3,014 $3,641 $3,881 $3,657 $3,672 $3,527 $3,665 $3,657 $3,715 Deposits $2,471 $2,881 $3,139 $3,931 $4,531 $5,803 $4,722 $4,782 $5,980 $5,803 $5,851 Tangible Common Equity $255 $325 $362 $478 $517 $548 $516 $538 $525 $548 $503 Profitability: Net Income $23.9 $33.1 $53.1 $66.5 $68.5 $87.1 $20.4 $22.2 $23.1 $21.4 $23.6 Return on Average Assets 0.81% 0.97% 1.31% 1.35% 1.22% 1.34% 1.40% 1.45% 1.41% 1.14% 1.31% Return on Average Equity 7.9% 8.7% 11.2% 11.0% 10.3% 12.2% 11.9% 12.6% 12.6% 11.8% 13.3% Net Interest Margin 3.29% 3.75% 3.71% 3.69% 3.44% 3.13% 3.29% 3.14% 3.17% 2.97% 2.99% Efficiency Ratio (1) 71.5% 65.3% 60.7% 59.9% 57.0% 58.1% 57.0% 57.7% 54.9% 62.7% 58.7% Asset Quality (2) : NPAs & 90+ PD / Assets 0.44% 0.44% 0.41% 0.47% 0.49% 0.00% 0.44% 0.39% 0.43% 0.31% 0.30% NPAs & 90+ PD / Loans + OREO 0.65% 0.61% 0.57% 0.68% 0.74% 0.00% 0.47% 0.67% 0.88% 0.62% 0.61% Reserves / Total Loans 0.69% 0.58% 0.59% 0.49% 1.47% 1.51% 1.56% 1.58% 1.55% 1.51% 1.41% NCOs / Avg. Loans 0.08% 0.04% 0.05% 0.06% 0.05% 0.05% 0.02% 0.00% 0.00% 0.04% 0.00% Bancorp Capital Ratios: TCE Ratio 8.3% 8.5% 8.8% 9.4% 9.1% 7.6% 8.8% 9.1% 7.1% 7.6% 6.9% Leverage Ratio 10.4% 9.9% 10.1% 10.5% 10.7% 9.2% 10.8% 10.8% 10.0% 9.2% 9.7% Tier 1 Capital Ratio 13.2% 12.4% 12.8% 13.5% 14.0% 14.1% 15.6% 15.4% 14.3% 14.1% 14.1% Total Capital Ratio 13.9% 12.9% 13.4% 14.0% 14.9% 15.4% 16.9% 16.7% 15.3% 15.4% 15.2% 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 ® 36 Leader In Our Core Markets Source: S&P Global Market Intelligence. Deposit data as of 6/30/21, 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 9 60.0% $1,341 Indianapolis-Carmel-Anderson, IN 17 8 0.9% 687 Chicago-Naperville-Elgin, IL-IN-WI 52 10 0.1% 609 Lafayette-West Lafayette, IN 4 6 7.4% 330 Lansing-East Lansing, MI 12 4 2.9% 288 Niles, MI 4 5 13.1% 272 Midland, MI 2 2 19.1% 246 Cadillac, MI 2 3 31.3% 225 Detroit-Warren-Dearborn, MI 28 1 0.1% 177 Logansport, IN 3 1 18.2% 161 Grand Rapids-Kentwood, MI 20 2 0.5% 135 Auburn, IN 3 2 15.1% 129 Columbus, IN 5 2 6.1% 110 Warsaw, IN 5 3 5.3% 100 Big Rapids, MI 4 1 15.0% 96 Kalamazoo-Portage, MI 9 1 2.1% 93 Fort Wayne, IN 15 3 1.0% 91 Marion, IN 6 1 6.8% 64 Sturgis, MI 5 1 6.4% 63 Kokomo, IN 7 1 3.2% 50 Kendallville, IN 5 1 5.7% 44 South Bend-Mishawaka, IN-MI 13 1 0.7% 38 Saginaw, MI 12 1 0.8% 21 Elkhart-Goshen, IN 14 1 0.3% 15 Total Franchise 80 $5,838

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 Slide 4 • 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.) • Adjusted net interest income and adjusted net interest margin excludes prepayment penalties on borrowings and acquisition-related purchase accounting adjustments. Adjusted cost of core funds includes average balances of non-interest bearing deposits and excludes prepayment penalties on borrowings. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 5 • 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 15 • Adjusted net income and adjusted diluted EPS excludes one-time acquisition expenses, credit loss expense on acquired loans, gain on sale of ESOP trustee accounts, ESOP settlement expenses, (gain)/loss on sale of securities, prepayment penalties on borrowings, 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 and prepayment penalties on borrowings. (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 one-time acquisition expenses, credit loss expense on acquired loans, gain on sale of ESOP trustee accounts, ESOP settlement expenses, (gain)/loss on sale of securities, prepayment penalties on borrowings, 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.) 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 ® 38 Slide 17 • Adjusted net interest income and adjusted net interest margin excludes prepayment penalties on borrowings and acquisition-related purchase accounting adjustments. Adjusted cost of core funds includes average balances of non-interest bearing deposits and excludes prepayment penalties on borrowings. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 20 • 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.) Slide 21 • Adjusted non-interest expense excludes one-time acquisition expenses and ESOP settlement expenses. Adjusted efficiency ratio excludes one-time acquisition expenses, gain on sale of ESOP trustee accounts, ESOP settlement expense, (gain)/loss on sale of securities 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.) Slides 39-57 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 ® 39 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Net income as reported 23,563$ 21,425$ 23,071$ 22,173$ 20,422$ Acquisition expenses - 884 799 242 - Tax effect - (184) (166) (51) - Net income excluding acquisition expenses 23,563 22,125 23,704 22,364 20,422 Credit loss expense acquired loans - - 2,034 - - Tax effect - - (427) - - Net income excluding credit loss expense acquired loans 23,563 22,125 25,311 22,364 20,422 Gain on sale of ESOP trustee accounts - - (2,329) - - Tax effect - - 489 - - Net income excluding gain on sale of ESOP business line 23,563 22,125 23,471 22,364 20,422 ESOP settlement expense - 1,900 - - - Tax effect - (315) - - - Net income excluding ESOP settlement expense 23,563 23,710 23,471 22,364 20,422 (Gain)/loss on sale of investment securities - - - - (914) Tax effect - - - - 192 Net income excluding (gain)/loss on sale of investment securities 23,563 23,710 23,471 22,364 19,700 Death benefit on bank owned life insurance ("BOLI") - - (517) (266) - Net income excluding death benefit on BOLI 23,563 23,710 22,954 22,098 19,700 Prepayment penalties on borrowings - - - 125 - Tax effect - - - (26) - Net income excluding prepayment penalties on borrowings 23,563 23,710 22,954 22,197 19,700 Adjusted net income 23,563$ 23,710$ 22,954$ 22,197$ 19,700$ Three Months Ended Non-GAAP Reconciliation of Net Income (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 ® 40 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Diluted EPS as reported 0.54$ 0.49$ 0.52$ 0.50$ 0.46$ Acquisition expenses - 0.02 0.02 0.01 - Tax effect - - - - - Diluted EPS excluding acquisition expenses 0.54 0.51 0.54 0.51 0.46 Credit loss expense acquired loans - - 0.05 - - Tax effect - - (0.01) - - Diluted EPS excluding credit loss expense acquired loans 0.54 0.51 0.58 0.51 0.46 Gain on sale of ESOP trustee accounts - - (0.05) - - Tax effect - - 0.01 - - Diluted EPS excluding gain on sale of ESOP business line 0.54 0.51 0.54 0.51 0.46 ESOP settlement expense - 0.04 - - - Tax effect - (0.01) - - - Diluted EPS excluding ESOP settlement expense 0.54 0.54 0.54 0.51 0.46 (Gain)/loss on sale of investment securities - - - - (0.02) Tax effect - - - - - Diluted EPS excluding (gain)/loss on sale of investment securities 0.54 0.54 0.54 0.51 0.44 Death benefit on bank owned life insurance ("BOLI") - - (0.02) (0.01) - Diluted EPS excluding death benefit on BOLI 0.54 0.54 0.52 0.50 0.44 Prepayment penalties on borrowings - - - - - Tax effect - - - - - Diluted EPS excluding prepayment penalties on borrowings 0.54 0.54 0.52 0.50 0.44 Adjusted diluted EPS 0.54$ 0.54$ 0.52$ 0.50$ 0.44$ Three Months Ended 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 ® 41 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Average assets 7,319,675$ 7,461,343$ 6,507,673$ 6,142,507$ 5,936,149$ Return on average assets ("ROAA") as reported 1.31% 1.14% 1.41% 1.45% 1.40% Acquisition expenses - 0.05 0.05 0.02 - Tax effect - (0.01) (0.01) - - ROAA excluding acquisition expenses 1.31 1.18 1.45 1.47 1.40 Credit loss expense acquired loans - - 0.12 - - Tax effect - - (0.03) - - ROAA excluding credit loss expense acquired loans 1.31 1.18 1.54 1.47 1.40 Gain on sale of ESOP trustee accounts - - (0.14) - - Tax effect - - 0.03 - - ROAA excluding gain on sale of ESOP business line 1.31 1.18 1.43 1.47 1.40 ESOP settlement expense - 0.10 - - - Tax effect - (0.02) - - - ROAA excluding ESOP settlement expense 1.31 1.26 1.43 1.47 1.40 (Gain)/loss on sale of investment securities - - - - (0.06) Tax effect - - - - 0.01 ROAA excluding (gain)/loss on sale of investment securities 1.31 1.26 1.43 1.47 1.35 Death benefit on bank owned life insurance ("BOLI") - - (0.03) (0.02) - ROAA excluding death benefit on BOLI 1.31 1.26 1.40 1.45 1.35 Prepayment penalty on borrowings - - - 0.01 - Tax effect - - - - - ROAA excluding prepayment penalties on borrowings 1.31 1.26 1.40 1.46 1.35 Adjusted ROAA 1.31% 1.26% 1.40% 1.46% 1.35% Three Months Ended Non-GAAP Reconciliation of Return on Average Assets (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 ® 42 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Average common equity 716,341$ 719,643$ 724,412$ 706,652$ 697,401$ Return on average common equity ("ROACE") as reported 13.34% 11.81% 12.64% 12.59% 11.88% Acquisition expenses - 0.49 0.44 0.14 - Tax effect - (0.10) (0.09) (0.03) - ROACE excluding acquisition expenses 13.34 12.20 12.99 12.70 11.88 Credit loss expense acquired loans - - 1.11 - - Tax effect - - (0.23) - - ROACE excluding credit loss expense acquired loans 13.34 12.20 13.87 12.70 11.88 Gain on sale of ESOP trustee accounts - - (1.28) - - Tax effect - - 0.27 - - ROACE excluding gain on sale of ESOP business line 13.34 12.20 12.86 12.70 11.88 ESOP settlement expense - 1.05 - - - Tax effect - (0.17) - - - ROACE excluding ESOP settlement expense 13.34 13.08 12.86 12.70 11.88 (Gain)/loss on sale of investment securities - - - - (0.53) Tax effect - - - - 0.11 ROACE excluding (gain)/loss on sale of investment securities 13.34 13.08 12.86 12.70 11.46 Death benefit on bank owned life insurance ("BOLI") - - (0.28) (0.15) - ROACE excluding death benefit on BOLI 13.34 13.08 12.58 12.55 11.46 Prepayment penalty on borrowings - - - 0.07 - Tax effect - - - (0.01) - ROACE excluding prepayment penalties on borrowings 13.34 13.08 12.58 12.61 11.46 Adjusted ROACE 13.34% 13.08% 12.58% 12.61% 11.46% Three Months Ended Non-GAAP Reconciliation of Return on Average Common Equity (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 ® 43 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Average common equity 716,341$ 719,643$ 724,412$ 706,652$ 697,401$ Less: Average intangible assets 176,356 179,594 174,920 173,905 174,785 Average tangible equity 539,985$ 540,049$ 549,492$ 532,747$ 522,616$ Return on average tangible equity ("ROATE") as reported 17.70% 15.74% 16.66% 16.69% 15.85% Acquisition expenses - 0.65 0.58 0.18 - Tax effect - (0.14) (0.12) (0.04) - ROATE excluding acquisition expenses 17.70 16.25 17.12 16.83 15.85 Credit loss expense acquired loans - - 1.47 - - Tax effect - - (0.31) - - ROATE excluding credit loss expense acquired loans 17.70 16.25 18.28 16.83 15.85 Gain on sale of ESOP trustee accounts - - (1.68) - - Tax effect - - 0.35 - - ROATE excluding gain on sale of ESOP business line 17.70 16.25 16.95 16.83 15.85 ESOP settlement expense - 1.40 - - - Tax effect - (0.23) - - - ROATE excluding ESOP settlement expense 17.70 17.42 16.95 16.83 15.85 (Gain)/loss on sale of investment securities - - - - (0.71) Tax effect - - - - 0.15 ROATE excluding (gain)/loss on sale of investment securities 17.70 17.42 16.95 16.83 15.29 Death benefit on bank owned life insurance ("BOLI") - - (0.37) (0.20) - ROATE excluding death benefit on BOLI 17.70 17.42 16.58 16.63 15.29 Prepayment penalty on borrowings - - - 0.09 - Tax effect - - - (0.02) - ROATE excluding prepayment penalties on borrowings 17.70 17.42 16.58 16.70 15.29 Adjusted ROATE 17.70% 17.42% 16.58% 16.70% 15.29% 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 ® 44 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Pre-tax income 27,102$ 25,505$ 27,127$ 25,943$ 23,872$ Provision for credit losses (1,386) (2,071) 1,112 (1,492) 367 Pre-tax, pre-provision net income 25,716$ 23,434$ 28,239$ 24,451$ 24,239$ Pre-tax, pre-provision net income 25,716$ 23,434$ 28,239$ 24,451$ 24,239$ Acquisition expenses - 884 799 242 - Gain on sale of ESOP trustee accounts - - (2,329) - - ESOP one-time expense - 1,900 - - - (Gain)/loss on sale of investment securities - - - - (914) Death benefit on bank owned life insurance - - (517) (266) - Prepayment penalties on borrowings - - - 125 - Adjusted pre-tax, pre-provision net income 25,716$ 26,218$ 26,192$ 24,552$ 23,325$ Average common equity 716,341$ 719,643$ 724,412$ 706,652$ 697,401$ Unadjusted pre-tax, pre-provision ROACE 14.56% 12.92% 15.47% 13.88% 14.10% Adjusted pre-tax, pre-provision ROACE 14.56% 14.45% 14.34% 13.94% 13.56% 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 ® 45 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Net interest income as reported 48,171$ 49,976$ 46,544$ 42,632$ 42,538$ Average interest earning assets 6,800,549 6,938,258 6,033,088 5,659,384 5,439,634 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 2.99% 2.97% 3.17% 3.14% 3.29% Net interest income as reported 48,171$ 49,976$ 46,544$ 42,632$ 42,538$ Prepayment penalties on borrowings - - - 125 - Acquisition-related purchase accounting adjustments ("PAU") (916) (1,819) (875) (230) (1,579) Adjusted net interest income 47,255$ 48,157$ 45,669$ 42,527$ 40,959$ Adjusted net interest margin 2.93% 2.86% 3.12% 3.13% 3.17% 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 ® 46 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2020 2020 2020 2020 2019 2019 2019 2019 Net interest income as reported 43,622$ 43,397$ 42,996$ 40,925$ 41,519$ 43,463$ 41,529$ 34,280$ Average interest earning assets 5,365,888 5,251,611 5,112,636 4,746,202 4,748,217 4,623,985 4,566,674 3,929,296 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 3.34% 3.39% 3.47% 3.56% 3.58% 3.82% 3.73% 3.62% Net interest income as reported 43,622$ 43,397$ 42,996$ 40,925$ 41,519$ 43,463$ 41,529$ 34,280$ Prepayment penalties on borrowings 3,804 - - - - - - - Acquisition-related purchase accounting adjustments ("PAU") (2,461) (1,488) (1,553) (1,434) (1,042) (1,739) (1,299) (1,510) Adjusted net interest income 44,965$ 41,909$ 41,443$ 39,491$ 40,477$ 41,724$ 40,230$ 32,770$ Adjusted net interest margin 3.44% 3.27% 3.35% 3.44% 3.49% 3.67% 3.61% 3.46% 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 ® 47 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2018 2018 2018 2018 2017 2017 2017 2017 Net interest income as reported 33,836$ 33,772$ 33,550$ 33,411$ 31,455$ 27,879$ 27,198$ 25,568$ Average interest earning assets 3,808,822 3,717,139 3,638,801 3,580,143 3,471,169 3,078,611 2,943,627 2,797,429 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 3.60% 3.67% 3.78% 3.81% 3.71% 3.71% 3.84% 3.80% Net interest income as reported 33,836$ 33,772$ 33,550$ 33,411$ 31,455$ 27,879$ 27,198$ 25,568$ Prepayment penalties on borrowings - - - - - - - - Acquisition-related purchase accounting adjustments ("PAU") (1,629) (789) (1,634) (2,037) (868) (661) (939) (1,016) Adjusted net interest income 32,207$ 32,983$ 31,916$ 31,374$ 30,587$ 27,218$ 26,259$ 24,552$ Adjusted net interest margin 3.43% 3.59% 3.60% 3.58% 3.61% 3.63% 3.71% 3.66% Three Months EndedThree Months Ended Non-GAAP Reconciliation of Net Interest Margin (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 ® 48 Footnote Index December 31, September 30, June 30, March 31, 2016 2016 2016 2016 Net interest income as reported 20,939$ 24,410$ 20,869$ 19,774$ Average interest earning assets 2,932,145 2,957,944 2,471,354 2,367,250 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 2.92% 3.37% 3.48% 3.45% Net interest income as reported 20,939$ 24,410$ 20,869$ 19,774$ Prepayment penalties on borrowings 4,839 - - - Acquisition-related purchase accounting adjustments ("PAU") (900) (459) (397) (547) Adjusted net interest income 24,878$ 23,951$ 20,472$ 19,227$ Adjusted net interest margin 3.45% 3.31% 3.42% 3.36% Three Months Ended Non-GAAP Reconciliation of Net Interest Margin (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 ® 49 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Total interest expense as reported 3,911$ 4,142$ 4,324$ 4,788$ 5,051$ Average interest bearing liabilities 5,237,779 5,322,968 4,545,332 4,249,932 4,116,568 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 0.30% 0.31% 0.38% 0.45% 0.50% Total interest expense as reported 3,911$ 4,142$ 4,324$ 4,788$ 5,051$ Prepayment penalties on borrowings - - - (125) - Adjusted interest expense 3,911$ 4,142$ 4,324$ 4,663$ 5,051$ Average interest bearing liablities 5,237,779 5,322,968 4,545,332 4,249,932 4,116,568 Average non-interest bearing deposits 1,322,781 1,366,621 1,180,890 1,139,068 1,063,268 Average core funding 6,560,560$ 6,689,589$ 5,726,222$ 5,389,000$ 5,179,836$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 0.24% 0.25% 0.30% 0.35% 0.40% Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (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 ® 50 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2020 2020 2020 2020 2019 2019 2019 2019 Total interest expense as reported 9,612$ 6,749$ 7,348$ 10,729$ 11,879$ 12,248$ 12,321$ 11,093$ Average interest bearing liabilities 4,077,223 4,027,057 3,975,297 3,814,785 3,794,943 3,601,144 3,570,713 3,131,276 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 0.94% 0.67% 0.74% 1.13% 1.24% 1.35% 1.38% 1.44% Total interest expense as reported 9,612$ 6,749$ 7,348$ 10,729$ 11,879$ 12,248$ 12,321$ 11,093$ Prepayment penalties on borrowings (3,804) - - - - - - - Adjusted interest expense 5,808$ 6,749$ 7,348$ 10,729$ 11,879$ 12,248$ 12,321$ 11,093$ Average interest bearing liablities 4,077,223 4,027,057 3,975,297 3,814,785 3,794,943 3,601,144 3,570,713 3,131,276 Average non-interest bearing deposits 1,037,232 996,427 924,890 717,257 747,513 818,164 818,872 643,601 Average core funding 5,114,455$ 5,023,484$ 4,900,187$ 4,532,042$ 4,542,456$ 4,419,308$ 4,389,585$ 3,774,877$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 0.45% 0.53% 0.60% 0.95% 1.04% 1.10% 1.13% 1.19% Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (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 ® 51 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2018 2018 2018 2018 2017 2017 2017 2017 Total interest expense as reported 9,894$ 8,499$ 7,191$ 6,015$ 5,319$ 4,191$ 3,607$ 3,266$ Average interest bearing liabilities 3,021,310 2,971,074 2,929,913 2,869,372 2,766,948 2,459,262 2,375,827 2,246,550 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 1.30% 1.13% 0.98% 0.85% 0.76% 0.68% 0.61% 0.59% Total interest expense as reported 9,894$ 8,499$ 7,191$ 6,015$ 5,319$ 4,191$ 3,607$ 3,266$ Prepayment penalties on borrowings - - - - - - - - Adjusted interest expense 9,894$ 8,499$ 7,191$ 6,015$ 5,319$ 4,191$ 3,607$ 3,266$ Average interest bearing liablities 3,021,310 2,971,074 2,929,913 2,869,372 2,766,948 2,459,262 2,375,827 2,246,550 Average non-interest bearing deposits 656,114 640,983 605,188 595,644 603,733 540,109 499,446 491,154 Average core funding 3,677,424$ 3,612,057$ 3,535,101$ 3,465,016$ 3,370,681$ 2,999,371$ 2,875,273$ 2,737,704$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 1.07% 0.93% 0.82% 0.70% 0.63% 0.55% 0.50% 0.48% Three Months Ended Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (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 ® 52 Footnote Index December 31, September 30, June 30, March 31, 2016 2016 2016 2016 Total interest expense as reported 8,450$ 4,552$ 3,781$ 3,754$ Average interest bearing liabilities 2,369,810 2,443,986 2,058,463 1,974,325 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 1.42% 0.74% 0.74% 0.76% Total interest expense as reported 8,450$ 4,552$ 3,781$ 3,754$ Prepayment penalties on borrowings (4,839) - - - Adjusted interest expense 3,611$ 4,552$ 3,781$ 3,754$ Average interest bearing liablities 2,369,810 2,443,986 2,058,463 1,974,325 Average non-interest bearing deposits 504,274 462,253 364,822 339,141 Average core funding 2,874,084$ 2,906,239$ 2,423,285$ 2,313,466$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 0.50% 0.62% 0.63% 0.66% Three Months Ended Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (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 ® 53 Footnote Index March 31, December 31, 2022 2021 Total deposit interest expense as reported 1,496$ 1,663$ Average interest bearing deposits 4,478,621 4,543,989 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 0.14% 0.15% Average interest bearing deposits 4,478,621 4,543,989 Average non-interest bearing deposits 1,322,781 1,366,621 Average total deposits 5,801,402$ 5,910,610$ Annualzied deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 0.10% 0.11% 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 ® 54 Footnote Index March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Non-GAAP Calculation of Efficiency Ratio Non-interest expense as reported 36,610$ 39,370$ 34,349$ 33,388$ 32,172$ Net interest income as reported 48,171 49,976 46,544 42,632 42,538 Non-interest income as reported 14,155 12,828 16,044 15,207 13,873 Non-interest expense/ (Net interest income + Non-interest income) ("Efficiency Ratio") 58.74% 62.69% 54.88% 57.73% 57.03% Non-GAAP Reconciliation of Adjusted Efficiency Ratio Non-interest expense as reported 36,610$ 39,370$ 34,349$ 33,388$ 32,172$ Acquisition expenses - (884) (799) (242) - ESOP settlement expense - (1,900) - - - Non-interest expense excluding merger expenses 36,610 36,586 33,550 33,146 32,172 Net interest income as reported 48,171 49,976 46,544 42,632 42,538 Prepayment penalties on borrowings - - - 125 - Net interest income excluding prepayment penalties on borrowings 48,171 49,976 46,544 42,757 42,538 Non-interest income as reported 14,155 12,828 16,044 15,207 13,873 Gain on sale of ESOP trustee accounts - - (2,329) - - (Gain)/loss on sale of investment securities - - - - (914) Death benefit on bank owned life insurance ("BOLI") - - (517) (266) - Non-interest income excluding (gain)/loss on sale of investment securities and death benefit on BOLI 14,155$ 12,828$ 13,198$ 14,941$ 12,959$ Adjusted efficiency ratio 58.74% 58.25% 56.16% 57.45% 57.97% Non-GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio (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 ® 55 Footnote Index Actual Acquisition & Non- Recurring Expenses Adjusted Non-interest Expense Salaries and employee benefits 19,735$ -$ 19,735$ Net occupancy expenses 3,561 - 3,561 Data processing 2,537 - 2,537 Professional fees 314 - 314 Outside services and consultants 2,525 - 2,525 Loan expense 2,545 - 2,545 FDIC insurance expense 725 - 725 Other losses 168 - 168 Other expense 4,500 - 4,500 Total non-interest expense 36,610$ -$ 36,610$ Annualized non-interest expense to average assets 2.03% 2.03% 2022 Non-GAAP Reconciliation of Non-Interest Expense (Dollars in Thousands, Unaudited) Three Months Ended March 31,

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 ® 56 Footnote Index Actual Acquisition & Non- Recurring Expenses Adjusted Actual Acquisition & Non- Recurring Expenses Adjusted Non-interest Expense Salaries and employee benefits 20,549$ (202)$ 20,347$ 18,901$ (25)$ 18,876$ Net occupancy expenses 3,204 - 3,204 2,935 (13) 2,922 Data processing 2,672 (1) 2,671 2,526 (17) 2,509 Professional fees 562 (45) 517 522 (53) 469 Outside services and consultants 2,197 (162) 2,035 2,330 (401) 1,929 Loan expense 2,803 (83) 2,720 2,645 - 2,645 FDIC insurance expense 798 (6) 792 279 - 279 Other losses 1,925 (1,904) 21 69 (1) 68 Other expense 4,660 (381) 4,279 4,142 (289) 3,853 Total non-interest expense 39,370$ (2,784)$ 36,586$ 34,349$ (799)$ 33,550$ Annualized non-interest expense to average assets 2.09% 1.95% 2.09% 2.05% Three Months Ended Non-GAAP Reconciliation of Non-Interest Expense (Dollars in Thousands, Unaudited) December 31, September 30, 2021 2021

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 ® 57 Footnote Index Actual Acquisition & Non- Recurring Expenses Adjusted Actual Acquisition & Non- Recurring Expenses Adjusted Non-interest Expense Salaries and employee benefits 17,730$ -$ 17,730$ 16,871$ -$ 16,871$ Net occupancy expenses 3,084 - 3,084 3,318 - 3,318 Data processing 2,388 - 2,388 2,376 - 2,376 Professional fees 588 (51) 537 544 - 544 Outside services and consultants 2,220 (187) 2,033 1,702 - 1,702 Loan expense 3,107 - 3,107 2,822 - 2,822 FDIC insurance expense 500 - 500 800 - 800 Other losses 6 - 6 283 - 283 Other expense 3,765 (4) 3,761 3,456 - 3,456 Total non-interest expense 33,388$ (242)$ 33,146$ 32,172$ -$ 32,172$ Annualized non-interest expense to average assets 2.18% 2.16% 2.20% 2.20% March 31, 2021 Three Months Ended Non-GAAP Reconciliation of Non-Interest Expense (Dollars in Thousands, Unaudited) June 30, 2021


Indiana	000-10792	35-1562417
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	HBNC	The NASDAQ Stock Market, LLC


(d) Exhibits
EXHIBIT INDEX
	Exhibit No.	Description	Location
	99.1	Press release issued on April 27, 2022	Attached
	99.2	Horizon Bancorp, Inc. Investor Presentation dated April 27, 2022	Attached
	104	Cover Page Interactive Data File (Embedded within the Inline XBRL document)	Within the Inline XBRL document


Date:	April 27, 2022	HORIZON BANCORP, INC.


		By:	/s/ Mark E. Secor
			Mark E. Secor,
			Executive Vice President & Chief Financial Officer