hbnc-20230426


Contact:			Mark E. Secor
			Chief Financial Officer
Phone:			(219) 873–2611
Fax:			(219) 874–9280
Date:			April 26, 2023

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

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

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

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

First Quarter 2023 Highlights

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

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

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

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

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

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

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

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

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

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

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

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

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

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

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

Summary


	For the Three Months Ended
	March 31,			December 31,			March 31,
Net Interest Income and Net Interest Margin	2023			2022			2022
Net interest income	$	45,237		$	48,782		$	46,831
Net interest margin	2.67		%	2.85		%	2.90		%
Adjusted net interest margin	2.65		%	2.83		%	2.85		%


	For the Three Months Ended
	March 31,		December 31,		March 31,
Asset Yields and Funding Costs	2023		2022		2022
Interest earning assets	4.17	%	3.88	%	3.13	%
Interest bearing liabilities	1.85	%	1.29	%	0.30	%


	For the Three Months Ended
Non-interest Income and	March 31,		December 31,		March 31,
Mortgage Banking Income	2023		2022		2022
Total non–interest income	$	9,620	$	10,674	$	14,155
Gain on sale of mortgage loans	785		1,196		2,027
Mortgage servicing income net of impairment	713		637		3,489


	For the Three Months Ended
	March 31,			December 31,			March 31,
Non-interest Expense	2023			2022			2022
Total non–interest expense	$	34,524		$	35,711		$	35,270
Annualized non–interest expense to average assets	1.79		%	1.84		%	1.95		%

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


	For the Three Months Ended
	March 31,		December 31,		March 31,
Credit Quality	2023		2022		2022
Allowance for credit losses to total loans	1.17	%	1.21	%	1.41	%
Non–performing loans to total loans	0.47	%	0.52	%	0.54	%
Percent of net charge–offs to average loans outstanding for the period	0.01	%	0.01	%	0.00	%


	March 31,			Net Reserve		December 31,
Allowance for Credit Losses	2023			1Q23		2022
Commercial	$	31,156		$	(1,289)	$	32,445
Retail Mortgage	4,447			(1,130)		5,577
Warehouse	798			(222)		1,020
Consumer	13,125			1,703		11,422
Allowance for Credit Losses (“ACL”)	$	49,526		$	(938)	$	50,464
ACL / Total Loans	1.17		%			1.21		%
Acquired Loan Discount (“ALD”)	$	6,158		$	(121)	$	6,279

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

Income Statement Highlights

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

The change in net income for the first quarter of 2023 when compared to the fourth quarter of 2022 reflects a decrease in non–interest expense of $1.2 million and lower income tax expense of $786,000, offset by a decrease in net interest income of $3.5 million, lower non–interest income of $1.1 million, which included a $500,000 loss on the sale of approximately $64.0 million of investment securities, and an increase in credit loss expense of $311,000.

Non–interest expense of $34.5 million in the first quarter of 2023 reflected a $1.3 million decrease in salaries and employee benefits, a $268,000 decrease in outside services and consultants, a $215,000 decrease in data processing expense and a $163,000 decrease in loan expense, offset by a $369,000 increase in other expense from the linked quarter.

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

Net Interest Margin

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

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

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

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

Lending Activity

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


Loan Growth by Type
(Dollars in Thousands, Unaudited)
	March 31,		December 31,		QTD		QTD	Annualized
	2023		2022		$ Change		% Change	% Change
Commercial	$	2,505,459	$	2,467,422	$	38,037	1.5%	6.3%
Residential mortgage	662,459		653,292		9,167		1.4%	5.7%
Consumer	1,026,076		967,755		58,321		6.0%	24.4%
Subtotal	4,193,994		4,088,469		105,525		2.6%	10.5%
Loans held for sale	2,409		5,807		(3,398)		(58.5)%	(237.3)%
Mortgage warehouse	52,957		69,529		(16,572)		(23.8)%	(96.7)%
Total loans and loans held for sale	$	4,249,360	$	4,163,805	$	85,555	2.1%	8.3%

Deposit Activity

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


Deposit Growth by Type
(Dollars in Thousands, Unaudited)
	March 31,		December 31,		QTD		QTD	Annualized
	2023		2022		$ Change		% Change	% Change
Non–interest bearing	$	1,231,845	$	1,277,768	$	(45,923)	(3.6)%	(14.6)%
Interest bearing	3,402,525		3,582,891		(180,366)		(5.0)%	(20.4)%
Time deposits	1,067,575		997,115		70,460		7.1%	28.7%
Total deposits	$	5,701,945	$	5,857,774	$	(155,829)	(2.7)%	(10.8)%

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

Expense Management


	Three Months Ended
	March 31,			December 31,	QTD				QTD
	2023			2022	$ Change				% Change
Non–interest Expense
Salaries and employee benefits	$	18,712				$	19,978			$	(1,266)	(6.3)%
Net occupancy expenses	3,563					3,279				284		8.7%
Data processing	2,669					2,884				(215)		(7.5)%
Professional fees	533					694				(161)		(23.2)%
Outside services and consultants	2,717					2,985				(268)		(9.0)%
Loan expense	1,118					1,281				(163)		(12.7)%
FDIC insurance expense	540					388				152		39.2%
Core deposit intangible amortization	903					925				(22)		(2.4)%
Other losses	221					118				103		87.3%
Other expense	3,548					3,179				369		11.6%
Total non–interest expense	$	34,524				$	35,711			$	(1,187)	(3.4)%
Annualized non–interest expense to average assets	1.79		%			1.84		%

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


	Three Months Ended
	March 31,			March 31,			QTD		QTD
	2023			2022			$ Change		% Change

Non–interest Expense
Salaries and employee benefits	$	18,712		$	19,735		$	(1,023)	(5.2)%
Net occupancy expenses	3,563			3,561			2		0.1%
Data processing	2,669			2,537			132		5.2%
Professional fees	533			314			219		69.7%
Outside services and consultants	2,717			2,525			192		7.6%
Loan expense	1,118			1,205			(87)		(7.2)%
FDIC insurance expense	540			725			(185)		(25.5)%
Core deposit intangible amortization	903			926			(23)		(2.5)%
Other losses	221			168			53		31.5%
Other expense	3,548			3,574			(26)		(0.7)%
Total non–interest expense	$	34,524		$	35,270		$	(746)	(2.1)%
Annualized non–interest expense to average assets	1.79		%	1.95		%

Total non–interest expense was $746,000 lower in the first quarter of 2023 when compared to the first quarter of 2022 primarily due to an decrease in salaries and incentive compensation expense of $1.0 million and a decrease in FDIC insurance expense of $185,000, offset by an increase in professional fees of $219,000 and outside services and consultants expense of $192,000.

Annualized non–interest expense as a percent of average assets was 1.79%, 1.84% and 1.95% for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

Income tax expense totaled $1.9 million for the first quarter of 2023, a decrease of $786,000 when compared to the fourth quarter of 2022 and a decrease of $1.7 million when compared to the first quarter of 2022.

Capital

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

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

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and the Bank as of March 31, 2023.


	Actual				Required for Capital Adequacy Purposes				Required for Capital Adequacy Purposes with Capital Buffer				Well Capitalized Under Prompt Corrective Action Provisions
	$		Ratio		$		Ratio		$		Ratio		$		Ratio
Total capital (to risk–weighted assets)
Consolidated	$	791,701	13.97	%	$	453,270	8.00	%	$	594,917	10.50	%	N/A		N/A
Bank	736,730		13.15	%	448,323		8.00	%	588,425		10.50	%	$	560,404	10.00	%
Tier 1 capital (to risk–weighted assets)
Consolidated	742,175		13.10	%	339,952		6.00	%	481,599		8.50	%	N/A		N/A
Bank	687,204		12.26	%	336,243		6.00	%	476,344		8.50	%	448,323		8.00	%
Common equity tier 1 capital (to risk–weighted assets)
Consolidated	621,647		10.97	%	254,964		4.50	%	396,611		7.00	%	N/A		N/A
Bank	687,241		12.26	%	252,182		4.50	%	392,283		7.00	%	364,263		6.50	%
Tier 1 capital (to average assets)
Consolidated	742,175		10.06	%	295,058		4.00	%	295,058		4.00	%	N/A		N/A
Bank	687,204		8.86	%	310,127		4.00	%	310,127		4.00	%	387,658		5.00	%

Liquidity

The Bank maintains a stable base of core deposits provided by long–standing and new relationships with individuals and local businesses. These deposits are the principal source of liquidity for Horizon. Other sources of liquidity for Horizon include earnings, loan repayments, investment security cash flows, proceeds from the sale of residential mortgage loans, unpledged investment securities and borrowing relationships with correspondent banks, including the Federal Home Loan Bank of Indianapolis (the “FHLB”). On March 31, 2023, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $1.65 billion in unused credit lines with various money center banks, including the FHLB and the Federal Reserve Bank. The Bank had approximately $666.3 million of unpledged investment securities on March 31, 2023.

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

Forward Looking Statements

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

Although management believes that the expectations reflected in such forward–looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry, including the effects of recent failures of other financial institutions, liquidity levels, and responses by the Federal Reserve, Department of the Treasury, and the Federal Deposit Insurance Corporation to address these issues; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the ability of Horizon to remediate its material weaknesses in its internal control over financial reporting; continuing increases in inflation; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; continuing risks and uncertainties relating to the COVID–19 pandemic and government responses thereto; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; material changes outside the U.S. or in overseas relations, including changes in U.S. trade relations related to imposition of tariffs, Brexit, and the phase out of the London Interbank Offered Rate (“LIBOR”); the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward–looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10–K, Quarterly Reports on Form 10–Q, and Current Reports on Form 8–K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward–looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Financial Highlights
(Dollars in Thousands, Unaudited)

	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Balance sheet:
Total assets	$	7,897,995	$	7,872,518	$	7,718,695	$	7,640,936	$	7,420,328
Interest earning deposits & federal funds sold	30,221		12,233		7,302		5,646		20,827
Interest earning time deposits	3,098		2,812		2,814		3,799		4,046
Investment securities	2,958,978		3,020,306		3,017,191		3,093,792		3,118,641
Commercial loans	2,505,459		2,467,422		2,403,743		2,363,991		2,259,327
Mortgage warehouse loans	52,957		69,529		73,690		116,488		105,118
Residential mortgage loans	662,459		653,292		634,901		608,582		593,372
Consumer loans	1,026,076		967,755		919,198		866,819		768,854
Total loans	4,246,951		4,157,998		4,031,532		3,955,880		3,726,671
Earning assets	7,273,921		7,225,833		7,087,368		7,088,737		6,898,208
Non–interest bearing deposit accounts	1,231,845		1,277,768		1,315,155		1,328,213		1,325,570
Interest bearing transaction accounts	3,402,525		3,582,891		3,736,798		3,760,890		3,782,644
Time deposits	1,067,575		997,115		778,885		756,482		743,283
Total deposits	5,701,945		5,857,774		5,830,838		5,845,585		5,851,497
Borrowings	1,311,927		1,142,949		1,048,091		959,222		728,664
Subordinated notes	58,933		58,896		58,860		58,823		58,786
Junior subordinated debentures issued to capital trusts	57,087		57,027		56,966		56,907		56,850
Total stockholders’ equity	702,559		677,375		644,993		657,865		677,450

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Income statement:
Net interest income	$	45,237		$	48,782		$	53,395		$	53,008		$	48,171
Credit loss expense (recovery)	242			(69)			(601)			240			(1,386)
Non–interest income	9,620			10,674			10,188			12,434			14,155
Non–interest expense	34,524			35,711			38,350			36,368			36,610
Income tax expense	1,863			2,649			2,013			3,975			3,539
Net income	$	18,228		$	21,165		$	23,821		$	24,859		$	23,563

Per share data:
Basic earnings per share	$	0.42		$	0.49		$	0.55		$	0.57		$	0.54
Diluted earnings per share	0.42			0.48			0.55			0.57			0.54
Cash dividends declared per common share	0.16			0.16			0.16			0.16			0.15
Book value per common share	16.11			15.55			14.80			15.10			15.55
Tangible book value per common share	12.17			11.59			10.82			11.11			11.54
Market value – high	16.32			20.00			20.59			19.21			23.54
Market value – low	$	10.31		$	14.51		$	16.74		$	16.72		$	18.67
Weighted average shares outstanding – Basis	43,583,554			43,574,151			43,573,370			43,572,796			43,554,713
Weighted average shares outstanding – Diluted	43,744,721			43,667,953			43,703,793			43,684,691			43,734,556

Key ratios:
Return on average assets	0.94		%	1.09		%	1.24		%	1.33		%	1.31		%
Return on average common stockholders’ equity	10.66			12.72			13.89			14.72			13.34
Net interest margin	2.67			2.85			3.04			3.13			2.90
Allowance for credit losses to total loans	1.17			1.21			1.27			1.32			1.41
Average equity to average assets	8.86			8.55			8.91			9.06			9.79
Efficiency ratio	62.93			60.06			59.33			54.91			57.83
Annualized non–interest expense to average assets	1.74			1.84			1.91			1.90			1.95
Bank only capital ratios:
Tier 1 capital to average assets	8.86			8.89			8.84			8.85			8.83
Tier 1 capital to risk weighted assets	12.26			12.72			12.74			12.87			13.23
Total capital to risk weighted assets	13.15			13.59			13.65			13.83			14.25

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Financial Highlights
(Dollars in Thousands Except Ratios, Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Loan data:
Substandard loans	$	49,804		$	56,194		$	57,932		$	59,377		$	57,928
30 to 89 days delinquent	13,971			10,709			6,970			6,739			6,358

Non–performing loans:
90 days and greater delinquent – accruing interest	137			92			193			210			107
Trouble debt restructures – accruing interest	—			2,570			2,529			2,535			2,372
Trouble debt restructures – non–accrual	—			1,548			1,665			1,345			1,501
Non–accrual loans	19,660			17,630			14,771			16,116			16,133
Total non–performing loans	$	19,797		$	21,840		$	19,158		$	20,206		$	20,113
Non–performing loans to total loans	0.47		%	0.52		%	0.47		%	0.51		%	0.54		%


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

	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Commercial	$	31,156	$	32,445	$	33,806	$	34,802	$	37,789
Residential mortgage	4,447		5,577		5,137		4,422		4,351
Mortgage warehouse	798		1,020		1,024		1,067		1,055
Consumer	13,125		11,422		11,402		12,059		9,313
Total	$	49,526	$	50,464	$	51,369	$	52,350	$	52,508


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

	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Commercial	$	104		$	(94)		$	51		$	(75)		$	38
Residential mortgage	(6)			(8)			(75)			40			(10)
Mortgage warehouse	—			—			—			—			—
Consumer	281			387			162			319			108
Total	$	379		$	285		$	138		$	284		$	136
Percent of net charge–offs (recoveries) to average loans outstanding for the period	0.01		%	0.01		%	0.00		%	0.01		%	0.00		%

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


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

	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Commercial	$	8,523		$	9,330		$	7,199		$	8,008		$	7,844
Residential mortgage	6,926			8,123			8,047			8,469			8,584
Mortgage warehouse	—			—			—			—			—
Consumer	4,348			4,387			3,912			3,729			3,685
Total	$	19,797		$	21,840		$	19,158		$	20,206		$	20,113
Non–performing loans to total loans	0.47		%	0.52		%	0.47		%	0.51		%	0.54		%


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

	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Commercial	$	1,567	$	1,881	$	3,206	$	1,414	$	2,245
Residential mortgage	203		107		22		—		170
Mortgage warehouse	—		—		—		—		—
Consumer	78		152		14		58		5
Total	$	1,848	$	2,140	$	3,242	$	1,472	$	2,420

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Average Balance Sheets
(Dollars in Thousands, Unaudited)
	Three Months Ended						Three Months Ended
	March 31, 2023						March 31, 2022
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets
Interest earning assets
Federal funds sold	$	7,767	$	83	4.33	%	$	237,605	$	91	0.16	%
Interest earning deposits	8,780		70		3.23	%	20,673		24		0.47	%
Investment securities – taxable	1,727,369		8,725		2.05	%	1,646,525		7,391		1.82	%
Investment securities – non–taxable (1)	1,314,129		7,556		2.95	%	1,279,082		6,697		2.69	%
Loans receivable (2) (3)	4,143,221		55,364		5.44	%	3,630,871		36,539		4.10	%
Total interest earning assets	7,201,266		71,798		4.17	%	6,814,756		50,742		3.13	%
Non–interest earning assets
Cash and due from banks	103,563						104,676
Allowance for credit losses	(50,337)						(54,307)
Other assets	576,614						454,550
Total average assets	$	7,831,106					$	7,319,675

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits	$	4,502,199	$	14,819	1.33	%	$	4,478,621	$	1,496	0.14	%
Borrowings	1,053,317		9,268		3.57	%	503,846		1,043		0.84	%
Repurchase agreements	138,749		503		1.47	%	139,742		37		0.11	%
Subordinated notes	58,910		880		6.06	%	58,763		880		6.07	%
Junior subordinated debentures issued to capital trusts	57,048		1,091		7.76	%	56,807		455		3.25	%
Total interest bearing liabilities	5,810,223		26,561		1.85	%	5,237,779		3,911		0.30	%
Non–interest bearing liabilities
Demand deposits	1,255,697						1,322,781
Accrued interest payable and other liabilities	71,714						42,774
Stockholders’ equity	693,472						716,341
Total average liabilities and stockholders’ equity	$	7,831,106					$	7,319,675

Net interest income / spread			$	45,237	2.32	%			$	46,831	2.83	%
Net interest income as a percent of average interest earning assets (1)					2.67	%					2.90	%

(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
(2) Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non–accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. The average rate is presented on a tax equivalent basis.

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Condensed Consolidated Balance Sheets
(Dollars in Thousands)

	March 31, 2023		December 31, 2022
	(Unaudited)
Assets
Cash and due from banks	$	134,722	$	123,505
Interest earning time deposits	3,098		2,812
Investment securities, available for sale	943,441		997,558
Investment securities, held to maturity (fair value $1,709,392 and $1,681,309)	2,015,537		2,022,748
Loans held for sale	2,409		5,807
Loans, net of allowance for credit losses of $49,526 and $50,464	4,197,425		4,107,534
Premises and equipment, net	91,814		92,677
Federal Home Loan Bank stock	32,264		26,677
Goodwill	155,211		155,211
Other intangible assets	16,336		17,239
Interest receivable	36,428		35,294
Cash value of life insurance	147,156		146,175
Other assets	122,154		139,281
Total assets	$	7,897,995	$	7,872,518

Liabilities
Deposits
Non–interest bearing	$	1,231,845	$	1,277,768
Interest bearing	4,470,100		4,580,006
Total deposits	5,701,945		5,857,774
Borrowings	1,311,927		1,142,949
Subordinated notes	58,933		58,896
Junior subordinated debentures issued to capital trusts	57,087		57,027
Interest payable	5,922		5,380
Other liabilities	59,622		73,117
Total liabilities	7,195,436		7,195,143
Commitments and contingent liabilities
Stockholders’ equity
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares	—		—
Common stock, no par value, Authorized 99,000,000 shares Issued and outstanding 44,041,213 and 43,937,889 shares	—		—
Additional paid–in capital	354,035		354,188
Retained earnings	440,556		429,385
Accumulated other comprehensive income (loss)	(92,032)		(106,198)
Total stockholders’ equity	702,559		677,375
Total liabilities and stockholders’ equity	$	7,897,995	$	7,872,518

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Interest income
Loans receivable	$	55,364	$	50,859	$	45,517	$	40,585	$	36,539
Investment securities – taxable	8,725		8,702		8,436		8,673		7,391
Investment securities – non–taxable	7,556		7,543		7,478		7,307		6,697
Other	153		83		65		43		115
Total interest income	71,798		67,187		61,496		56,608		50,742
Interest expense
Deposits	14,819		10,520		4,116		1,677		1,496
Borrowed funds	9,771		6,040		3,895		1,450		1,080
Subordinated notes	880		881		880		881		880
Junior subordinated debentures issued capital trusts	1,091		964		744		556		455
Total interest expense	26,561		18,405		9,635		4,564		3,911
Net interest income	45,237		48,782		51,861		52,044		46,831
Credit loss expense (recovery)	242		(69)		(601)		240		(1,386)
Net interest income after credit loss expense	44,995		48,851		52,462		51,804		48,217
Non–interest Income
Service charges on deposit accounts	3,028		2,947		3,023		2,833		2,795
Wire transfer fees	109		118		148		170		159
Interchange fees	2,867		2,951		3,089		3,582		2,780
Fiduciary activities	1,275		1,270		1,203		1,405		1,503
Losses on sale of investment securities	(500)		—		—		—		—
Gain on sale of mortgage loans	785		1,196		1,441		2,501		2,027
Mortgage servicing income net of impairment	713		637		355		319		3,489
Increase in cash value of bank owned life insurance	981		751		814		519		510
Death benefit on bank owned life insurance	—		—		—		644		—
Other income	362		804		115		461		892
Total non–interest income	9,620		10,674		10,188		12,434		14,155
Non–interest expense
Salaries and employee benefits	18,712		19,978		20,613		19,957		19,735
Net occupancy expenses	3,563		3,279		3,293		3,190		3,561
Data processing	2,669		2,884		2,539		2,607		2,537
Professional fees	533		694		552		283		314
Outside services and consultants	2,717		2,985		2,855		2,485		2,525
Loan expense	1,118		1,281		1,392		1,533		1,205
FDIC insurance expense	540		388		670		775		725
Core deposit intangible amortization	903		925		926		925		926
Other losses	221		118		398		362		168
Other expenses	3,548		3,179		3,578		3,287		3,574
Total non–interest expense	34,524		35,711		36,816		35,404		35,270
Income before income taxes	20,091		23,814		25,834		28,834		27,102
Income tax expense	1,863		2,649		2,013		3,975		3,539
Net income	$	18,228	$	21,165	$	23,821	$	24,859	$	23,563
Basic earnings per share	$	0.42	$	0.49	$	0.55	$	0.57	$	0.54
Diluted earnings per share	0.42		0.48		0.55		0.57		0.54

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

Use of Non–GAAP Financial Measures

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


Non–GAAP Reconciliation of Net Income
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Net income as reported	$	18,228	$	21,165	$	23,821	$	24,859	$	23,563












(Gain) / loss on sale of investment securities	500		—		—		—		—
Tax effect	(105)		—		—		—		—
Net income excluding (gain) / loss on sale of investment securities	18,623		21,165		23,821		24,859		23,563
Death benefit on bank owned life insurance (“BOLI”)	—		—		—		(644)		—
Net income excluding death benefit on BOLI	18,623		21,165		23,821		24,215		23,563



Adjusted net income	$	18,623	$	21,165	$	23,821	$	24,215	$	23,563


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,
	2023		2022		2022		2022		2022
Diluted earnings per share (“EPS”) as reported	$	0.42	$	0.48	$	0.55	$	0.57	$	0.54












(Gain) / loss on sale of investment securities	0.01		—		—		—		—
Tax effect	—		—		—		—		—
Diluted EPS excluding (gain) / loss on sale of investment securities	0.43		0.48		0.55		0.57		0.54
Death benefit on bank owned life insurance (“BOLI”)	—		—		—		(0.01)		—




Adjusted diluted EPS	$	0.43	$	0.48	$	0.55	$	0.56	$	0.54

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Net Income
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Pre–tax income	$	20,091	$	23,814	$	25,834	$	28,834	$	27,102
Credit loss expense (recovery)	242		(69)		(601)		240		(1,386)
Pre–tax, pre–provision net income	$	20,333	$	23,745	$	25,233	$	29,074	$	25,716

Pre–tax, pre–provision net income	$	20,333	$	23,745	$	25,233	$	29,074	$	25,716



(Gain) / loss on sale of investment securities	500		—		—		—		—
Death benefit on BOLI	—		—		—		(644)		—

Adjusted pre–tax, pre–provision net income	$	20,833	$	23,745	$	25,233	$	28,430	$	25,716


Non–GAAP Reconciliation of Net Interest Margin
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Net interest income as reported	$	45,237		$	48,782		$	51,861		$	52,044		$	46,831
Average interest earning assets	7,201,266			7,091,980			7,056,208			6,943,633			6,814,756
Net interest income as a percentage of average interest earning assets (“Net Interest Margin”)	2.67		%	2.85		%	3.04		%	3.13		%	2.90		%

Net interest income as reported	$	45,237		$	48,782		$	51,861		$	52,044		$	46,831
Acquisition–related purchase accounting adjustments (“PAUs”)	(367)			(431)			(906)			(1,223)			(916)

Adjusted net interest income	$	44,870		$	48,351		$	50,955		$	50,821		$	45,915
Adjusted net interest margin	2.65		%	2.83		%	2.99		%	3.06		%	2.85		%


Non–GAAP Reconciliation of Tangible Stockholders’ Equity and Tangible Book Value per Share
(Dollars in Thousands, Unaudited)

	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Total stockholders’ equity	$	702,559	$	677,375	$	644,993	$	657,865	$	677,450
Less: Intangible assets	171,547		172,450		173,375		173,662		174,588
Total tangible stockholders’ equity	$	531,012	$	504,925	$	471,618	$	484,203	$	502,862
Common shares outstanding	43,621,422		43,574,151		43,574,151		43,572,796		43,572,796
Book value per common share	$	16.11	$	15.55	$	14.80	$	15.10	$	15.55
Tangible book value per common share	$	12.17	$	11.59	$	10.82	$	11.11	$	11.54

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Non–interest expense as reported	$	34,524		$	35,711		$	36,816		$	35,404		$	35,270
Net interest income as reported	45,237			48,782			51,861			52,044			46,831
Non–interest income as reported	$	9,620		$	10,674		$	10,188		$	12,434		$	14,155
Non–interest expense / (Net interest income + Non–interest income) (“Efficiency Ratio”)	62.93		%	60.06		%	59.33		%	54.91		%	57.83		%

Non–interest expense as reported	$	34,524		$	35,711		$	36,816		$	35,404		$	35,270




Net interest income as reported	45,237			48,782			51,861			52,044			46,831



Non–interest income as reported	9,620			10,674			10,188			12,434			14,155

(Gain) / loss on sale of investment securities	500			—			—			—			—
Death benefit on BOLI	—			—			—			(644)			—
Non–interest income excluding (gain) / loss on sale of investment securities and death benefit on BOLI	$	10,120		$	10,674		$	10,188		$	11,790		$	14,155
Adjusted efficiency ratio	62.37		%	60.06		%	59.33		%	55.46		%	57.83		%


Non–GAAP Reconciliation of Return on Average Assets
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Average assets	$	7,831,106		$	7,718,366		$	7,635,102		$	7,476,238		$	7,319,675
Return on average assets (“ROAA”) as reported	0.94		%	1.09		%	1.24		%	1.33		%	1.31		%












(Gain) / loss on sale of investment securities	0.03			—			—			—			—
Tax effect	(0.01)			—			—			—			—
ROAA excluding (gain) / loss on sale of investment securities	0.96			1.09			1.24			1.33			1.31
Death benefit on BOLI	—			—			—			(0.03)			—
ROAA excluding death benefit on BOLI	0.96			1.09			1.24			1.30			1.31



Adjusted ROAA	0.96		%	1.09		%	1.24		%	1.30		%	1.31		%

Horizon Bancorp, Inc. Reports First Quarter 2023 Results


Non–GAAP Reconciliation of Return on Average Common Equity
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Average common equity	$	693,472		$	660,188		$	680,376		$	677,299		$	716,341
Return on average common equity (“ROACE”) as reported	10.66		%	12.72		%	13.89		%	14.72		%	13.34		%












(Gain) / loss on sale of investment securities	0.29			—			—			—			—
Tax effect	(0.06)			—			—			—			—
ROACE excluding (gain) / loss on sale of investment securities	10.89			12.72			13.89			14.72			13.34
Death benefit on BOLI	—			—			—			(0.38)			—
ROACE excluding death benefit on BOLI	10.89			12.72			13.89			14.34			13.34



Adjusted ROACE	10.89		%	12.72		%	13.89		%	14.34		%	13.34		%


Non–GAAP Reconciliation of Return on Average Tangible Equity
(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2022			2022			2022			2022
Average common equity	$	693,472		$	660,188		$	680,376		$	677,299		$	716,341
Less: Average intangible assets	172,139			173,050			173,546			175,321			176,356
Average tangible equity	$	521,333		$	487,138		$	506,830		$	501,978		$	539,985
Return on average tangible equity (“ROATE”) as reported	14.18		%	17.24		%	18.65		%	19.86		%	17.70		%












(Gain) / loss on sale of investment securities	0.39			—			—			—			—
Tax effect	(0.08)			—			—			—			—
ROATE excluding (gain) / loss on sale of investment securities	14.49			17.24			18.65			19.86			17.70
Death benefit on BOLI	—			—			—			(0.51)			—
ROATE excluding death benefit on BOLI	14.49			17.24			18.65			19.35			17.70



Adjusted ROATE	14.49		%	17.24		%	18.65		%	19.35		%	17.70		%

Earnings Conference Call

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

Participants may access the live conference call on April 27, 2023 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833–974–2379 from the United States, 866–450–4696 from Canada or 1–412–317–5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through May 4, 2023. The replay may be accessed by dialing 877–344–7529 from the United States, 855–669–9658 from Canada or 1–412–317–0088 from other international locations, and entering the access code 6349380.

Horizon Bancorp, Inc. Reports First Quarter 2023 Results

About Horizon Bancorp, Inc.

Celebrating 150 years, Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion–asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon Bank’s retail offerings include prime residential, indirect auto, and other secured consumer lending to in–market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in–market business banking and treasury management services, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® A NASDAQ Traded Company - Symbol HBNC INVESTOR PRESENTATION APRIL 26, 2023

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Forward-Looking Statements This presentation may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward–looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this presentation should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward–looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward–looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward–looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry, including the effects of recent failures of other financial institutions, liquidity levels, and responses by the Federal Reserve, Department of the Treasury, and the Federal Deposit Insurance Corporation to address these issues; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the ability of Horizon to remediate its material weaknesses in its internal control over financial reporting; continuing increases in inflation; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; continuing risks and uncertainties relating to the COVID-19 pandemic and government responses thereto; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; material changes outside the U.S. or in overseas relations, including changes in U.S. trade relations related to imposition of tariffs, Brexit, and the phase out of the London Interbank Offered Rate (“LIBOR”); the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law. Non-GAAP Measures Certain non-GAAP financial measures are presented herein. Horizon believes they are useful to investors and provide a greater understanding of Horizon’s business without giving effect to non-recurring costs and non-core items. For each non-GAAP financial measure, we have presented comparable GAAP measures and reconciliations of the non-GAAP measures to those GAAP measures in the Appendix to this presentation. Please see slides 43-47. Important Information 2

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Corporate Overview 3

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

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 6 Northern Indiana Central Indiana Michigan $2.3B Deposits $1.5B Deposits $1.8B Deposits 27 Branches 18 Branches 26 Branches • Positive and stable economic base comparable to markets in Northern Indiana • Grand Rapids one of the most attractive markets in the Midwest • Significant local investment in technology and start up innovation • Greater Indianapolis area a high growth segment for the Midwest • Purdue University collaborates with contiguous cities of Lafayette and West Lafayette • Attractive market to outbound Illinois businesses and people • Significant manufacturing expansion • State surplus of $6 billion • Considerable future private and public investments • Double commuter track addition to the South Shore train lines • Attractive market to outbound Illinois businesses and people Source: S&P Global Market Intelligence. Note: Core market demographics reflect MSA data. Deposit data as of 3/31/2023. Multiple High Growth & Stable Markets Northern Indiana Central Indiana Michigan Median HHI $68,745 $98,246 $63,139 ’23 – ’28 HHI Growth 10.36% 11.36% 11.31% ’23 – ’28 Pop. Growth 1.21% 1.86% 0.24%

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 8 Mark E. Secor EVP & Chief Financial Officer • 35 Years of Banking and Public Accounting Experience • 15 Years with Horizon as CFO and EVP of Horizon Kathie A. DeRuiter EVP & Senior Operations Officer • 34 Years of Banking and Operational Experience • 23 Years as Senior Bank Operations Officer Todd A. Etzler EVP & Corporate Secretary & General Counsel • 32 Years of Corporate Legal Experience and 13 years of General Counsel Experience • 6 Years as General Counsel Craig M. Dwight Chairman & CEO • 45 Years of Banking Experience • 25 Years as President or CEO of Bank Seasoned Management Team Lynn M. Kerber EVP & Chief Commercial Banking Officer • 33 Years of Banking Experience • 6 Years with Horizon as Senior Commercial Credit Officer Noe S. Najera EVP, Senior Retail & Mortgage Lending Officer • 22 Years of Banking Experience • 8 Years with Horizon, 4 Years as SVP Retail Lending Thomas M. Prame President • 29 Years of Banking Experience • 21 Years in Executive Leadership Roles

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Q1 Performance 9

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Annual Commercial Loan Growth 6-9% 6.3% Annual Consumer Loan Growth 4-6% 24.4% Net Interest Margin 2.70-2.80% 2.67% Net Interest Income $185-$195 M $45 M Q1 $180 M Ann. Annual Expenses to Average Assets <1.90% 1.79% ROAA >1.10% 0.94% ROAE >11.70% 10.66% 2023 Goal Update Actual 2023 YTD Goal 2023 YTD 10

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® • Commercial loan portfolio increased by ~$38 million, 6.3% annualized • Net funding of $109 million for Q1 compared to $98 million for Q4 • Q1 loan growth distribution • 26% C&I • 24% owner occupied CRE • 50% non-owner occupied CRE - disbursed across major sub-sectors • Commercial pipeline at $130 million compared to $134 million at the end of Q4 • YTD net charge-offs of 1 basis point • New production yield ~ 1.75% higher than payoff/pay down yields Diversified Commercial Loans By Geography & Mix 11 Northern Indiana, 14% Central Indiana, 34% Other, 3% Southwest Michigan, 16% Northern Michigan, 9% East Michigan, 7% West Michigan, 17% Geographic Dispersion Non- Owner Occupied Real Estate, 48% C&I, 25% Owner Occ. Real Estate, 23% Ag Loans, 2% Develop./Land, 1% Res. Spec. Homes, 1% Portfolio Composition Quarter Highlights Note: Data as of 3/31/23

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 1% 2% 3% 3% 3% 5% 6% 6% 6% 7% 10% Farm Land Mini Storage All Others Lessors - Residential 1-4 Medical Office Lessors Student Housing Retail Motel Warehouse/Industrial Office (except medical) Lessors - Residential Multi Note: Data as of 3/31/23. All percentages are of total commercial loans. 1% 1% 1% 1% 2% 2% 2% 2% 3% 3% 5% Wholesale Trade Construction Professional & Technical Services All Others Restaurants Leisure and Hospitality Manufacturing Retail Trade Real Estate Rental & Leasing Individuals and Other Services Health Care, Edu. Social Assist. 1% 1% 1% 1% 1% 1% 2% 2% 2% 2% 3% 3% 5% Agriculture Professional & Technical Services Restaurants Transportation & Warehousing Retail Trade All Others Real Estate Rental & Leasing Construction Government Manufacturing Health Care, Educational Social Assist. Individuals and Other Services Finance & Insurance 12 Non-Owner Occupied CRE – 52% of Total Commercial Loans ~$1.3 Billion Owner Occupied CRE – 23% of Total Commercial Loans ~$0.6 Billion C&I Loans – 25% of Total Commercial Loans ~$0.6 Billion Diversified Commercial Loans By Industry Commercial Loans - $2.505 Billion

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 13 High Value Direct Consumer Loans • Consumer portfolio increased ~$56 million, primarily through addition of high quality HELOC purchase yielding ~ 9.25% • Organic balances down ~ 1% reflective of seasonality of production/amortization • Consistent focus on higher credit quality borrowers • YTD net recovery of 3 basis points • New production yield ~ 1.40% higher than payoff/pay down yields Quarter Highlights Direct Auto, 4.9% Home Equity Term, 10.1% HELOCs, 78.8% RV & Boat, 4.8% Unsecured, 0.7% Other, 0.7% Total Direct Outstanding $523M Consumer Direct Portfolio Weighted Metrics Credit Score 736 Debt-to-Income 34% Loan-to-value 69% 2023 Production Credit Score Distribution 700+ 370 78.7% 670 – 699 79 16.8% 640 – 669 21 4.5% 470 100.0% Note: Data as of 3/31/23

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 15 Prime Mortgage Loans • Mortgage portfolio increased $9MM, consistent with Q4 and 2023 plan • Strategy focused on saleable production • Results aligning with industry Q1: $30MM orig., $785,000 fee income Q4: $62MM orig., $1.2MM fee income • YTD net charge-offs of 0 basis points • Consistent higher quality borrowers, significant capacity to pay and low LTV • New production yield ~ 2.40% higher than payoff/pay down yields 2023 Production Credit Score Distribution 700+ 112 74.7% 670 – 699 11 7.3% 640 – 669 27 18.0% 150 100.0% Mortgage Portfolio Weighted Metrics Credit Score 746 Debt-to-Income 34% Loan-to-value 71% Jumbo, 48.3% Rental, 1.1% Conforming, 44.8% Construction, 5.8% Total Outstanding $662M Quarter Highlights Note: Data as of 3/31/23

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 HBNC U.S. commercial banks¹ Net charge offs as a % of average loans 0.17% 0.48 0.41% 0.03% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 HBNC U.S. commercial banks¹ Nonperforming assets as % of assets 0.22% 0.36% 0.42% 0.30% Source: SNL Financial Note: Financial data as of December 31, 2022; ¹ Based on regulatory financials for all U.S. commercial banks as defined by SNL Financial banking industry aggregates Proven Credit Quality Through Cycles 17

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 18 Note: Data as of 3/31/23 Seasoned, Core Deposit Base • Consumer: $14K avg. account balance 11 year avg. tenure • Commercial: $81K avg. account balance 10 year avg. tenure • Public: $819K avg. account balance 11 year avg. tenure 52% of Balances in Checking Accounts • Daily operating accounts of clients • Long tenured relationships of 11 years 75% of Balances Insured/Collateralized • Significant portion of deposits covered by FDIC, Collateralized or IntraFi • Additional coverage through Indiana Public Deposit Insurance Fund (PDIF) Granular and Tenured Deposits 56% 19% 25% FDIC Insured <$250K, Collateralized and/or Third-Party Insured (e.g., IntraFi and Indiana PDIF) 75% Total Deposits at 3/31/23 $5.7B

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 20 Financial Highlights

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 22 11.6% 12.0% 11.3% 12.0% 11.3% 11.0% 11.6% 12.0% 11.9% 12.1% 11.4% 11.5% 2018 2019 2020 2021 2022 1Q23 10.1% 10.5% 10.7% 9.1% 10.0% 10.1% 9.9% 9.9% 9.0% 8.9% 9.5% 9.4% 2018 2019 2020 2021 2022 1Q23 13.4% 14.0% 14.9% 15.7% 14.4% 14.0% 13.5% 13.5% 14.3% 14.2% 13.6% 13.6% 2018 2019 2020 2021 2022 1Q23 Source: S&P Global Market Intelligence. Note: Company closed the acquisition of Salin Bancshares, Inc. in March 2019. TCE / TA (%) Leverage Ratio (%) Total RBC Ratio (%) 4.0% Adequate + Buffer 7.0% KBW Regional Bank Index Median - MRQ Solid Regulatory Capital 10.5% HBNC Ratio 8.8% 9.3% 9.1% 7.6% 6.6% 6.9% 9.1% 9.3% 8.6% 8.3% 7.2% 7.2% 2018 2019 2020 2021 2022 1Q23 CET1 Ratio (%)

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 24 Increasing Deposit Premiums Core Deposit Premiums Remain Near Historic Lows Natural Balance Sheet Hedge Courtesy of Stifel Financial Corp.

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 25 Productive Use of Capital Deploying Capital • Investing to leverage capital through organic loan growth • Opportunistic acquisitions with focus on lease models • Stock buyback on pause until interest rates stabilize Long-standing Dividend Strong Cash Position • 30+ years of uninterrupted quarterly cash dividend • Quarterly dividend increase of 6.3% to $0.16 per share in second quarter of 2022, resulting in tenth dividend increase in the last 11 years • As of March 31, 2023, implied annualized dividend yield of 5.8% • Targeted dividend payout ratio of 30-40% and aligned with capital retention strategy • Strong cash position at the holding company currently represents approximately 8 quarters of the current dividend plus fixed costs

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 26 $ M $25.7 $29.1 $25.2 $23.7 $20.3 $23.6 $24.2 $23.8 $21.2 $18.6 $0.54 $0.56 $0.55 $0.48 $0.43 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. Net Income(1) Pre-tax, Pre-provision Income Adj. Net Income Adj. EPS 14.56% 16.84% 14.71% 14.27% 12.18% 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. PTPP ROACE(1) Adj. PTPP ROACE $45.9 $50.8 $51.0 $48.4 $44.9 2.85% 3.06% 2.99% 2.83% 2.65% 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. Net Interest Income(1) Adj. Net Interest Income Adj. NIM $ M 17.70% 19.35% 18.65% 17.24% 14.18% 1Q22 2Q22 3Q22 4Q22 1Q23 Adj. ROATE(1) Adj. ROATE Favorable Core Return on Average Tangible Equity (1) See Footnote Index and non-GAAP reconciliations in Appendix.

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Fed Agy CMO, 3% State and Muni, 51% Fed Agy MBS, 18% Private labeled MBS, 1% U.S. Treasury, 19% Corp, 8% Total Investments at 3/31/23 $3.0B 27 Investment portfolio cash flows are helping to fund higher yielding loans • Book yield of 2.22%, effective duration of 6.58 years • Positive spread over total cost of funds • $25 million of cash flows during Q1 • Estimated $100 million of cash flows expected through the end of 2023, not including sales • Run off yield in 2023 is 2.49% • Sold ~ $64 million in securities in the first quarter with a $500,000 loss and a six month payback by paying down short-term debt Investment Portfolio Securities Portfolio Detail Security Type ($000s) 1Q 2023 Amortized Cost 4Q 2022 Amortized Cost QoQ Change 1Q 2023 Duration (yrs) U.S. Treasury and federal agencies $589 $590 $(1) 4.48 Mortgage-backed 667 690 (23) 5.37 Corporate securities 246 248 (2) 5.23 State and municipal 1,578 1,633 (55) 8.30 Total Securities $3,080 $3,161 $(81) 6.58

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 28 Disciplined Loan Pricing $3.8 $3.6 $3.5 $3.6 $3.6 $3.8 $3.9 $4.0 $4.1 4.22% 4.25% 4.38% 4.34% 4.10% 4.33% 4.61% 5.02% 5.44% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Yield on Loans (%) / Total Average Loans ($B) Total Average Loans Yield on Loans (%)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Non-interest bearing 21% Interest bearing(1) 60% CDs 19% 29 • In-market relationships and strategic pricing, contributed to total deposit cost of 1.04%(1) • Total deposit beta’s have accelerated in Q1 to 51% compared to 32% in the linked quarter • Stable and consistent deposit mix • Account and deposit retention data very strong to date Average Cost(1) Actual Deposits ($000s) March 31, 2023 Actual Balances December 31, 2022 Actual Balances 1Q 2023 (QTD) 4Q 2022 (QTD) Non-interest bearing $1,231,845 $1,277,768 0.00% 0.00% Interest bearing (excluding CDs) $3,402,525 $3,582,891 0.93% 0.65% Time Deposits (CDs) $1,067,575 $997,115 2.62% 2.19% Total Deposits $5,701,945 $5,857,774 1.04% 0.71% Stable Core Deposits Total Deposits at 3/31/23 $5.7B (1) See Footnote Index and non-GAAP reconciliations in Appendix.

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 30 Balance Sheet Management Deposit Betas Drive Sensitivity • Actively managing balance sheet for continued elevated rates throughout 2023 • $2.3 billion of assets repricing in the next 12 months. $1.3 billion adjust with a rate change to their index within 90 days • Deposit betas range from 15% for consumer deposits to 80% on public funds • Evaluating opportunities for NII expansion as market stabilizes * Based on 12-month parallel rate shock as of December 31, 2022 and March 31, 2023. $213 $207 $202 $197 $202 $203 $200 $198 -6.00% -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% $185 $190 $195 $200 $205 $210 $215 - 100 bp Base + 100 bp + 200 bp M ill io n s NII Volatility* 12/31/22 NII 3/31/23 NII 12/31/22 % Impact on NII 3/31/23 % Impact on NII 12-Month Parallel Interest Rate Shock

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Closing Comments 32

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 34 Q&A

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 35 Appendix

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 36 $0.1 $0.1 $0.2 $0.2 $0.5 $0.7 $0.6 $0.9 $1.0 $0.5 $0.6 $0.7 $0.8 $0.9 $1.1 $1.2 $1.3 $1.3 $1.4 $1.4 $1.5 $1.8 $1.8 $2.1 $2.7 $3.1 $4.0 $4.2 $5.2 $5.9 $7.4 $7.9 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Horizon has grown assets at a 12% CAGR since 2000 via 15 acquisitions and organic expansion Pre-crisis Post-crisis Recent Expansion Proven History of Organic Growth Supplemented by Strategic Acquisitions Year | Assets Acquired assets Source: SNL Financial Note: Financial data as of December 31, 2022; Pre-crisis represents 2000 – 2005, Post-crisis represents 2010 – 2017; Recent expansion represents 2019 – present Consistent strategy over the last two decades: Complementing organic growth with strategic M&A, expanding our footprint and offering to customers $bn (unless otherwise stated) 2 acquisitions $0.13bn in assets 11 acquisitions $2.27bn in assets 2 acquisitions $1.90bn in assets

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 37 Greater than KRX… 3 years 77% 10 years 44% … of the time Source: SNL Financial; Note: Financial Data as of December 31, 2022; ¹ Represents the average Nasdaq Regional Banking Index; ² Based on HBNC’s ROATCE Beta relative to average KRX return (β = 0.64) since 2012Q4; ³ Based on HBNC’s ROAA Beta relative to average KRX ROAA (β = 0.52) since 2012Q4 18.0% 19.9% Leading returns over the past 10 years 0% 5% 10% 15% 20% 25% 30% 2012Q4 2013Q4 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 2019Q4 2020Q4 2021Q4 2022Q4 Historical Quarterly ROATCE vs. KRX¹ HBNC KRX¹ Historical Quarterly ROAA vs. KRX¹ 1.10% 1.35% HBNC KRX¹ 0.0% 0.5% 1.0% 1.5% 2.0% 2012Q4 2013Q4 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 2019Q4 2020Q4 2021Q4 2022Q4 ~36% less volatile than the KRX² ~48% less volatile than the KRX³ Greater than KRX… 3 years 85% 10 years 68% … of the time Diversified Business Model Produces Consistent, Top Tier Profitability

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Commercial, $2,507M, 59% Residential Mortgage, $662M, 16% Consumer, $1,026M, 24% Mortgage Warehouse, $53M, 1% Held For Sale, $2M, 0% 38 Gross Loans at 3/31/23 $4.2B Commercial Loans by Industry ($M) 3/31/23 Balance % of Commercial Portfolio % of Total Loan Portfolio Lessors – Residential Multi Family $250 10.0% 5.9% Health Care, Educational & Social 194 7.7% 4.6% Office (except medical) 165 6.6% 3.9% Warehouse/Industrial 164 6.5% 3.9% Individual and Other Services 163 6.5% 3.8% Retail 146 5.8% 3.4% Hotel 145 5.8% 3.4% Lessors – Student Housing 135 5.4% 3.2% Finance & Insurance 123 4.9% 2.9% Real Estate Rental & Leasing 122 4.9% 2.9% Manufacturing 112 4.5% 2.6% Retail Trade 85 3.4% 2.0% Construction 82 3.3% 1.9% Medical Office 71 2.8% 1.7% Lessors – Residential 1–4 Family 69 2.8% 1.6% Government 63 2.5% 1.5% Restaurants 62 2.5% 1.5% Mini Storage 53 2.1% 1.2% Leisure and Hospitality 49 2.0% 1.2% Professional & Technical Services 45 1.8% 1.1% Transportation & Warehousing 39 1.5% 0.9% Farm Land 39 1.5% 0.9% Wholesale Trade 33 1.3% 0.8% Land Development 22 0.9% 0.5% Other 76 3.0% 1.8% Total $2,507 100.0% 59.1% Diversified & Granular Loan Portfolio

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 39 Historical Financials ($M except per share data) 2017 2018 2019 2020 2021 2022 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 Balance Sheet: Total Assets $3,964 $4,247 $5,247 $5,887 $7,375 $7,873 $7,420 $7,641 $7,719 $7,873 $7,900 Gross Loans $2,838 $3,014 $3,641 $3,881 $3,671 $4,164 $3,730 $3,959 $4,033 $4,164 $4,251 Deposits $2,881 $3,139 $3,931 $4,531 $5,803 $5,858 $5,851 $5,846 $5,831 $5,858 $5,702 Tangible Common Equity $325 $362 $478 $517 $548 $505 $503 $484 $472 $505 $532 Profitability: Net Income $33.1 $53.1 $66.5 $68.5 $87.1 $93.4 $23.6 $24.9 $23.8 $21.2 $18.2 Return on Average Assets 0.97% 1.31% 1.35% 1.22% 1.34% 1.24% 1.31% 1.33% 1.24% 1.09% 0.94% Return on Average Equity 8.7% 11.2% 11.0% 10.3% 12.2% 13.7% 13.3% 14.7% 13.9% 12.7% 10.7% Net Interest Margin 3.70% 3.63% 3.58% 3.33% 3.03% 2.98% 2.90% 3.13% 3.04% 2.85% 2.67% Efficiency Ratio 65.0% 60.0% 57.0% 56.0% 57.1% 58.0% 57.8% 54.9% 59.3% 60.1% 62.4% Asset Quality: NPAs & 90+ PD / Assets 0.44% 0.41% 0.47% 0.49% 0.31% 0.30% 0.30% 0.28% 0.29% 0.30% 0.27% NPAs & 90+ PD / Loans + OREO 0.61% 0.57% 0.68% 0.74% 0.62% 0.58% 0.61% 0.55% 0.56% 0.58% 0.51% Reserves / Total Loans 0.58% 0.59% 0.49% 1.47% 1.48% 1.21% 1.41% 1.32% 1.27% 1.21% 1.17% NCOs / Avg. Loans 0.04% 0.05% 0.06% 0.05% 0.05% 0.02% 0.00% 0.01% 0.00% 0.01% 0.01% Bancorp Capital Ratios: TCE Ratio 8.5% 8.8% 9.4% 9.1% 7.6% 6.6% 6.9% 6.5% 6.3% 6.6% 6.9% Leverage Ratio 9.9% 10.1% 10.5% 10.7% 9.2% 10.2% 9.7% 9.6% 9.6% 10.0% 10.1% Tier 1 Capital Ratio 12.4% 12.8% 13.5% 14.0% 14.1% 12.5% 14.1% 13.7% 13.5% 13.5% 13.1% Total Capital Ratio 12.9% 13.4% 14.0% 14.9% 15.4% 13.4% 15.2% 14.6% 14.4% 14.4% 14.0% Year Ended December 31, Quarter Ended,

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 40 Leader In Our Core Markets Source: S&P Global Market Intelligence. Deposit data as of 6/30/22, estimated pro forma for recent or pending transactions per S&P Global Market Intelligence MSA HBNC Rank HBNC Branches HBNC Market Share Deposits in Market ($M) Michigan City-La Porte, IN 1 8 55.3% $1,184 Indianapolis-Carmel-Anderson, IN 16 8 1.0% 791 Chicago-Naperville-Elgin, IL-IN-WI 47 10 0.1% 709 Lafayette-West Lafayette, IN 4 5 7.1% 344 Lansing-East Lansing, MI 12 4 2.4% 278 Niles, MI 4 5 12.0% 275 Detroit-Warren-Dearborn, MI 22 1 0.1% 224 Midland, MI 2 2 19.0% 219 Cadillac, MI 2 3 29.0% 219 Grand Rapids-Kentwood, MI 18 2 0.6% 192 Logansport, IN 3 1 17.5% 163 Columbus, IN 6 1 6.4% 118 Fort Wayne, IN 13 3 1.2% 114 Auburn, IN 3 2 11.9% 114 Warsaw, IN 5 2 5.1% 101 Kalamazoo-Portage, MI 9 1 2.0% 94 Big Rapids, MI 4 1 11.5% 80 Marion, IN 6 1 7.0% 68 Sturgis, MI 5 1 5.9% 62 Kokomo, IN 7 1 3.0% 47 Elkhart-Goshen, IN 10 1 0.9% 44 Kendallville, IN 5 1 4.8% 39 Saginaw, MI 12 1 0.8% 21 South Bend-Mishawaka, IN-MI 15 1 0.3% 17 Total Franchise 76 $5,900

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 41 Slide 4 • Return on average tangible equity excludes average intangible assets from average equity. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Pre-tax, pre-provision income excludes income tax expense and credit loss expense. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 26 • Adjusted net income and adjusted diluted EPS excludes loss on sale of investment securities, net of tax and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Pre-tax, pre-provision income excludes income tax expense and credit loss expense. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Adjusted net interest income and adjusted net interest margin exclude acquisition-related purchase accounting adjustments. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Adjusted ROATE and Adjusted pre-tax, pre-provision ROACE exclude loss on sale of investment securities, net of tax and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 29 • Average cost of average total deposits includes average balances of non-interest bearing deposits. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Footnote Index

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 42 Slides 43-47 Use of Non-GAAP Financial Measures • Certain information set forth in the presentation materials refers to financial measures determined by methods other than in accordance with GAAP. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business without giving effect to purchase accounting impacts, one-time acquisition and other non-recurring costs and non-core items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. Footnote Index

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 43 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Net income as reported 18,228$ 21,165$ 23,821$ 24,859$ 23,563$ (Gain)/loss on sale of investment securities 500 - - - - Tax effect (105) - - - - Net income excluding (gain)/loss on sale of investment securities 18,623 21,165 23,821 24,859 23,563 Death benefit on bank owned life insurance ("BOLI") - - - (644) - Net income excluding death benefit on BOLI 18,623 21,165 23,821 24,215 23,563 Adjusted net income 18,623$ 21,165$ 23,821$ 24,215$ 23,563$ March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Diluted EPS as reported 0.42$ 0.48$ 0.55$ 0.57$ 0.54$ (Gain)/loss on sale of investment securities 0.01 - - - - Tax effect - - - - - Diluted EPS excluding (gain)/loss on sale of investment securities 0.43 0.48 0.55 0.57 0.54 Death benefit on bank owned life insurance ("BOLI") - - - (0.01) - Diluted EPS excluding death benefit on BOLI 0.43 0.48 0.55 0.56 0.54 Adjusted diluted EPS 0.43$ 0.48$ 0.55$ 0.56$ 0.54$ Three Months Ended Three Months Ended Non-GAAP Reconciliation of Net Income (Dollars in Thousands, Unaudited) Non-GAAP Reconciliation of Diluted Earnings per Share (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 44 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Net interest income as reported 45,237$ 48,782$ 51,861$ 52,044$ 46,831$ Average interest earning assets 7,201,266 7,091,980 7,056,208 6,943,633 6,814,756 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 2.67% 2.85% 3.04% 3.13% 2.90% Net interest income as reported 45,237$ 48,782$ 51,861$ 52,044$ 46,831$ Acquisition-related purchase accounting adjustments ("PAU") (367) (431) (906) (1,223) (916) Adjusted net interest income 44,870$ 48,351$ 50,955$ 50,821$ 45,915$ Adjusted net interest margin 2.65% 2.83% 2.99% 3.06% 2.85% Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 45 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Average common equity 693,472$ 660,188$ 680,376$ 677,299$ 716,341$ Less: Average intangible assets 172,139 173,050 173,546 175,321 176,356 Average tangible equity 521,333$ 487,138$ 506,830$ 501,978$ 539,985$ Return on average tangible equity ("ROATE") as reported 14.18% 17.24% 18.65% 19.86% 17.70% (Gain)/loss on sale of investment securities 0.39 - - - - Tax effect (0.08) - - - - ROATE excluding (gain)/loss on sale of investment securities 14.49 17.24 18.65 19.86 17.70 Death benefit on bank owned life insurance ("BOLI") - - - (0.51) - ROATE excluding death benefit on BOLI 14.49 17.24 18.65 19.35 17.70 Adjusted ROATE 14.49% 17.24% 18.65% 19.35% 17.70% Non-GAAP Reconciliation of Return on Average Tangible Equity (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 46 Footnote Index March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Pre-tax income 20,091$ 23,814$ 25,834$ 28,834$ 27,102$ Provision for credit losses 242 (69) (601) 240 (1,386) Pre-tax, pre-provision net income 20,333$ 23,745$ 25,233$ 29,074$ 25,716$ Pre-tax, pre-provision net income 20,333$ 23,745$ 25,233$ 29,074$ 25,716$ (Gain)/loss on sale of investment securities 500 - - - - Death benefit on bank owned life insurance - - - (644) - Adjusted pre-tax, pre-provision net income 20,833$ 23,745$ 25,233$ 28,430$ 25,716$ Average common equity 693,472$ 660,188$ 680,376$ 677,299$ 716,341$ Unadjusted pre-tax, pre-provision ROACE 11.89% 14.27% 14.71% 17.22% 14.56% Adjusted pre-tax, pre-provision ROACE 12.18% 14.27% 14.71% 16.84% 14.56% Non-GAAP Reconciliation of Pre-Tax, Pre-Provision Net Income (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 47 Footnote Index March 31, December 31, 2023 2022 Total deposit interest expense as reported 14,819$ 10,520$ Average interest bearing deposits 4,502,199 4,555,887 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 1.33% 0.92% Average interest bearing deposits 4,502,199 4,555,887 Average non-interest bearing deposits 1,255,697 1,321,139 Average total deposits 5,757,896$ 5,877,026$ Annualzied deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 1.04% 0.71% Three Months Ended Non-GAAP Reconciliation of Cost of Deposits (Dollars in Thousands, Unaudited)


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 26, 2023	Attached
	99.2	Horizon Bancorp, Inc. Investor Presentation dated April 26, 2023	Attached
	104	Cover Page Interactive Data File (Embedded within the Inline XBRL document)	Within the Inline XBRL document


Date:	April 26, 2023	HORIZON BANCORP, INC.


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