hbnc-20210127


Contact:			Mark E. Secor
			Chief Financial Officer
Phone:			(219) 873-2611
Fax:			(219) 874-9280
Date:			January 27, 2021

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results

Michigan City, Indiana, January 27, 2021 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) — Horizon Bancorp, Inc. (“Horizon” or the “Company”) announced its unaudited financial results for the three and twelve months ending December 31, 2020.

“Horizon closed 2020 with record quarterly top– and bottom–line results, supported by continued strength in mortgage lending and other fee–generating businesses, the benefits of our work to deleverage and optimize returns on total earning assets, and favorable deferral trends and credit quality metrics,” Chairman and CEO Craig M. Dwight said. “Entering the new year with strong liquidity, capital, and reserves, we see clear opportunities to enhance the bank’s operating efficiency, deepen in–market retail and commercial customer relationships, and help to strengthen our resilient Indiana and Michigan communities in 2021.”

Fourth Quarter 2020 Highlights

•Earned record net income of $21.9 million, or $0.50 diluted earnings per share, compared to $20.3 million, or $0.46 diluted earnings per share, for the third quarter of 2020 and $18.5 million, or $0.41 diluted earnings per share, for the fourth quarter of 2019.

•Grew pre–tax, pre–provision net income to a record $26.9 million for the quarter, compared to $26.7 million for the third quarter of 2020 and $22.8 million for the fourth quarter of 2019. 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.)

•Grew net interest income to a record $43.6 million for the quarter, compared to $43.4 million for the third quarter of 2020 and $41.5 million for the fourth quarter of 2019. Adjusted net interest income for the quarter was $45.0 million compared to $41.9 million for the third quarter of 2020. (See the “Non–GAAP Reconciliation of Return on Average Assets and Return on Average Common Equity” tables below.)

•Reported return on average assets (“ROAA”) of 1.49% and return on average common equity (“ROACE”) of 12.79% in the quarter, as well as adjusted ROAA of 1.56% and adjusted ROACE of 13.33%, excluding the impact of gains on sale of investment securities and prepayment penalties on borrowings, net of tax. (See the “Non–GAAP Reconciliation of Return on Average Assets and Return on Average Common Equity” tables below.)

•Grew mortgage–related non–interest income by 8.5% from the linked quarter and 138.6% from the prior year period, with gain on mortgage loan sales of $7.8 million and net mortgage servicing income of $327,000. The bank originated $186.1 million in mortgage loans during the quarter, down 10.1% from the third quarter of 2020 and up 63.3% from the fourth quarter of 2019.

•Total non–interest income, excluding securities gains, grew to a record $17.1 million, up 9.6% from the linked quarter and 43.5% from the prior year period, supported by increases in mortgage–related gains and servicing income, banking and fiduciary fees.

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results

•Reported net interest margin (“NIM”) of 3.34% and adjusted NIM of 3.44%, with reported NIM declining by 5 basis points and adjusted NIM increasing by 17 basis points from the third quarter of 2020. (See the “Non–GAAP Reconciliation of Net Interest Margin” table for the definition of this non–GAAP calculation). An estimated 18 basis points attributed to PPP lending improved the margin, offset by an estimated 10 and 7 basis point compression, respectively, attributed to the subordinated notes and excess liquidity held during the quarter, for both NIM and adjusted NIM.

•Increased the allowance for credit losses (“ACL”) by 1.3% during the quarter and 222.8% year–to–date to $57.0 million at period end, representing 1.47% of total loans, reflecting January 2020 implementation of the Current Expected Credit Losses (“CECL”) accounting method and prudent increases in the allocation for the Company’s identified stressed portfolios. ACL at period end also represented 1.55% of loans excluding $208.9 million in Federal Paycheck Protection Program (“PPP”) loans, and 212.7% of non–performing loans.

•COVID–19 deferral levels improved to 3.5% of total loans at period end, compared to 4.1% on September 30, 2020 and 14.3% on June 30, 2020 and the bank experienced no material specific loan losses attributed to COVID–19 closures in 2020.

•Maintained solid asset quality metrics, including non–performing and delinquent loans representing 0.69% and 0.19% of total loans, respectively, at December 31, 2020, while net charge–offs were 0.01% of average loans for the period.

•The efficiency ratio for the period was 57.54% compared to 55.59% for the third quarter of 2020. The adjusted efficiency ratio was 56.48% compared to 56.64% for the third quarter of 2020. (See the “Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio” tables below.)

•Horizon’s tangible book value per share increased from $10.63 at December 31, 2019 to $11.78 at December 31, 2020, which includes the accounting adjustment for CECL as of January 1, 2020. This represents the highest tangible book value per share in the Company’s history. (See the “Non–GAAP Reconciliation of Tangible Stockholders’ Equity and Tangible Book Value per Share” tables below.)

•Maintained strong liquidity position including approximately $1.6 billion in cash and investment securities, which is approximately 26.3% of total assets, and approximately $1.0 billion in unused availability on lines of credit, at December 31, 2020.

•Horizon has reported over thirty years of uninterrupted dividends and as of year–end had in excess of $127 million in cash at the holding company, which provides us with considerable future optionality to build shareholder value.

Summary


	For the Three Months Ended
	December 31,			September 30,			December 31,
Net Interest Income and Net Interest Margin	2020			2020			2019
Net interest income	$	43,622		$	43,397		$	41,519
Net interest margin	3.34		%	3.39		%	3.58		%
Adjusted net interest margin	3.44		%	3.27		%	3.49		%


	For the Three Months Ended
	December 31,		September 30,		December 31,
Asset Yields and Funding Costs	2020		2020		2019
Interest earning assets	4.05	%	3.90	%	4.57	%
Interest bearing liabilities	0.94	%	0.67	%	1.24	%

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results

The yield on interest earning assets for the fourth quarter of 2020 was impacted by PPP loans and higher liquidity levels. Horizon estimates PPP loans increased the yield by 15 basis points and higher liquidity levels compressed the yield by 8 basis points. Horizon estimates PPP loans decreased the yield on interest earning assets by 6 basis point for the third quarter of 2020. The funding costs on interest bearing liabilities increased by an estimated 37 basis points for the fourth quarter of 2020 as a result of prepayment penalties on borrowings.


	For the Three Months Ended
Non–interest Income and	December 31,		September 30,		December 31,
Mortgage Banking Income	2020		2020		2019
Total non–interest income	$	19,733	$	16,700	$	11,934
Gain on sale of mortgage loans	7,815		8,813		3,119
Mortgage servicing income net of impairment	327		(1,308)		294


	For the Three Months Ended
	December 31,			September 30,			December 31,
Non–interest Expense	2020			2020			2019
Total non–interest expense	$	36,453		$	33,407		$	30,432
Annualized non–interest expense to average assets	2.47		%	2.30		%	2.32		%


	For the Three Months Ended
	December 31,		September 30,		December 31,
Credit Quality	2020		2020		2019
Allowance for credit losses to total loans	1.47	%	1.39	%	0.49	%
Non–performing loans to total loans	0.69		0.72		0.58
Percent of net charge–offs to average loans outstanding for the period	0.01		0.02		0.02


				CECL Adoption
Allowance for	December 31,					January 1,			Net Reserve Build								December 31,
Credit Losses	2019			Impact		2020			1Q20		2Q20		3Q20		4Q20		2020
Commercial	$	11,996		$	13,618	$	25,614		$	6,936	$	6,597	$	648	$	2,415	$	42,210
Retail Mortgage	923			4,048		4,971			683		178		(368)		(844)		4,620
Warehouse	1,077			—		1,077			(22)		135		60		17		1,267
Consumer	3,671			4,911		8,582			599		(260)		889		(880)		8,930
Allowance for Credit Losses (“ACL”)	$	17,667		$	22,577	$	40,244		$	8,196	$	6,650	$	1,229	$	708	$	57,027
ACL / Total Loans	0.49		%			1.10		%									1.47		%
Acquired Loan Discount (“ALD”)	$	20,228		$	(2,786)	$	17,442		$	(1,436)	$	(1,532)	$	(1,541)	$	(1,439)	$	11,494

Horizon’s asset quality metrics continued to remain favorable through the fourth quarter, with low levels of delinquency and other real estate owned and a decrease in non–performing loans. Horizon’s reserve build reflects adoption of CECL on January 1, 2020 and the increase in the Company’s quarterly allocations to cover potential future loan losses related to economic factors and the nature and characteristics of its loan portfolios, primarily related to the impact on non–essential businesses caused by COVID–19 closures and the slow pace of reopening and economic recovery. Through December 31, 2020, Horizon has not recorded any material specific loan losses attributed to COVID–19 closures. Lower losses are attributable to Horizon working with its customers to provide payment modifications to help assist our customers as they manage through the economic slowdown due to the pandemic and the location of a high percentage of our retail and

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results

restaurant loans have benefited from the influx of Chicago residents into our markets. In addition, during the quarter Horizon made good progress on lowering its non–performing assets as a result of payoffs received on two non–performing credits.

During the fourth quarter, $2.0 million of the ACL related to the January 1, 2020, transfer of acquired loan discounts to the ACL was used in the payoff on two non–performing credits and a portion included with the $2.5 million of acquisition related income recognized during the quarter.

Income Statement Highlights

Net income for the fourth quarter of 2020 was $21.9 million, or $0.50 diluted earnings per share, compared to $20.3 million, or $0.46, for the linked quarter and $18.5 million, or $0.41, for the prior year period.

Adjusted net income for the fourth quarter of 2020 was $22.8 million, or $0.52 diluted earnings per share, compared to $19.4 million, or $0.45, for the linked quarter and $18.5 million, or $0.41, 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.

The increase in net income for the fourth quarter of 2020 when compared to the third quarter of 2020 reflects an increase in non–interest income of $3.0 million, an increase of $225,000 in net interest income and a decrease in income tax expense of $2.4 million, offset by an increase in non–interest expense of $3.0 million and an increase in credit loss expense of $990,000.

Interest income includes the recognition of PPP loan processing fees totaling $4.6 million in the fourth quarter of 2020, compared to $2.2 million in the linked quarter. On December 31, 2020, the Company had $4.0 million in deferred PPP loan processing fees outstanding and $208.9 million in PPP loans outstanding. PPP deferred fees and loans outstanding at September 30, 2020 were $8.0 million and $310.8 million, respectively. The processing fees are deferred and recognized over the contractual life of the loan, or accelerated at forgiveness.

Fourth quarter 2020 income from the gain on sale of mortgage loans, totaled $7.8 million in the fourth quarter of 2020, down from $8.8 million in the linked quarter and up from $3.1 million in the prior year period.

Non–interest expense of $36.5 million in the fourth quarter of 2020 reflected a $1.2 million increase in salaries and employee benefits expense from the linked quarter. The increase in salaries and employee benefits expense reflected higher performance–based compensation accruals due to the record 2020 net interest income, non–interest income revenues and other key performance metrics. The increase in other losses included mostly one–time items including losses on liquidation of bank owned real estate held from previous branch closings.

The increase in net income for the fourth quarter of 2020 when compared to the prior year period reflects an increase in net interest income of $2.1 million, an increase in non–interest income of $7.8 million and a decrease in income tax expense of $2.0 million, offset by an increase in non–interest expense of $5.8 million and an increase in credit loss expense of $2.7 million.

Net income for the year ended December 31, 2020 was $68.5 million, or $1.55 diluted earnings per share, compared to $66.5 million, or $1.53 diluted earnings per share, for the year ended December 31, 2019. Adjusted net income for the year ended December 31, 2020 was $67.8 million, or $1.53 diluted earnings per share, compared to $70.7 million, or $1.63 diluted earnings per share for the year ended December 31, 2019. The increase in net income for the year ended December 31, 2020 when compared to the prior year reflects an increase in net interest income of $10.1 million, an increase in non–interest income of $16.6 million and a decrease in income tax expense of $3.4 million, offset by an increase in the provision for credit loss expense of $18.8 million and an increase in non–interest expense of $9.4 million.

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Non–GAAP Reconciliation of Net Income
(Dollars in Thousands, Unaudited)
	Three Months Ended										Twelve Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
	2020		2020		2020		2020		2019		2020		2019
Net income as reported	$	21,893	$	20,312	$	14,639	$	11,655	$	18,543	$	68,499	$	66,538
Merger expenses	—		—		—		—		—		—		5,650
Tax effect	—		—		—		—		—		—		(987)
Net income excluding merger expenses	21,893		20,312		14,639		11,655		18,543		68,499		71,201
(Gain) / loss on sale of investment securities	(2,622)		(1,088)		(248)		(339)		(10)		(4,297)		75
Tax effect	551		228		52		71		2		902		(16)
Net income excluding (gain) / loss on sale of investment securities	19,822		19,452		14,443		11,387		18,535		65,104		71,260
Death benefit on bank owned life insurance (“BOLI”)	—		(31)		—		(233)		—		(264)		(580)
Net income excluding death benefit on BOLI	19,822		19,421		14,443		11,154		18,535		64,840		70,680
Prepayment penalties on borrowings	3,804		—		—		—		—		3,804		—
Tax effect	(799)		—		—		—		—		(799)		—
Net income excluding prepayment penalties on borrowings	22,827		19,421		14,443		11,154		18,535		67,845		70,680
Adjusted net income	$	22,827	$	19,421	$	14,443	$	11,154	$	18,535	$	67,845	$	70,680

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Non–GAAP Reconciliation of Diluted Earnings per Share
(Dollars in Thousands, Unaudited)
	Three Months Ended										Twelve Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
	2020		2020		2020		2020		2019		2020		2019
Diluted earnings per share (“EPS”) as reported	$	0.50	$	0.46	$	0.33	$	0.26	$	0.41	$	1.55	$	1.53
Merger expenses	—		—		—		—		—		—		0.13
Tax effect	—		—		—		—		—		—		(0.02)
Diluted EPS excluding merger expenses	0.50		0.46		0.33		0.26		0.41		1.55		1.64
(Gain) / loss on sale of investment securities	(0.06)		(0.02)		(0.01)		(0.01)		—		(0.10)		—
Tax effect	0.01		0.01		—		—		—		0.02		—
Diluted EPS excluding (gain) / loss on sale of investment securities	0.45		0.45		0.32		0.25		0.41		1.47		1.64
Death benefit on bank owned life insurance (“BOLI”)	—		—		—		(0.01)		—		(0.01)		(0.01)
Diluted EPS excluding death benefit on BOLI	0.45		0.45		0.32		0.24		0.41		1.46		1.63
Prepayment penalties on borrowings	0.09		—		—		—		—		0.09		—
Tax effect	(0.02)		—		—		—		—		(0.02)		—
Diluted EPS excluding prepayment penalties on borrowings	0.52		0.45		0.32		0.24		0.41		1.53		1.63
Adjusted diluted EPS	$	0.52	$	0.45	$	0.32	$	0.24	$	0.41	$	1.53	$	1.63


Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Income
(Dollars in Thousands, Unaudited)
	Three Months Ended										Twelve Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
	2020		2020		2020		2020		2019		2020		2019
Pre–tax income	$	23,860	$	24,638	$	16,632	$	13,239	$	22,463	$	78,369	$	79,841
Credit loss expense	3,042		2,052		7,057		8,600		340		20,751		1,976
Pre–tax, pre–provision income	$	26,902	$	26,690	$	23,689	$	21,839	$	22,803	$	99,120	$	81,817

Pre–tax, pre–provision income	$	26,902	$	26,690	$	23,689	$	21,839	$	22,803	$	99,120	$	81,817
Merger expenses	—		—		—		—		—		—		5,650
(Gain) / loss on sale of investment securities	(2,622)		(1,088)		(248)		(339)		(10)		(4,297)		75
Death benefit on BOLI	—		(31)		—		(233)		—		(264)		(580)
Prepayment penalties on borrowings	3,804		—		—		—		—		3,804		—
Adjusted pre–tax, pre–provision income	$	28,084	$	25,571	$	23,441	$	21,267	$	22,793	$	98,363	$	86,962

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results

Horizon’s net interest margin decreased to 3.34% for the fourth quarter of 2020 compared to 3.39% for the third quarter of 2020. The decrease in net interest margin reflects an increase in the cost of interest bearing liabilities of 27 basis points, offset by an increase in the yield of interest earning assets of 15 basis points. Interest income from acquisition–related purchase accounting adjustments was $973,000 higher during the fourth quarter of 2020 when compared to the third quarter of 2020.

Horizon’s net interest margin decreased to 3.34% for the fourth quarter of 2020 when compared to 3.58% for the fourth quarter of 2019. The decrease in net interest margin reflects a decrease in the yield on interest earning assets of 52 basis points offset by a decrease in the cost of interest bearing liabilities of 30 basis points.

Horizon’s net interest margin decreased to 3.44% for the year ended December 31, 2020 compared to 3.69% for the prior year. The decrease in net interest margin reflects a decrease in the yield on interest earning assets of 64 basis points offset by a decrease in the cost of interest bearing liabilities of 48 basis points.

The net interest margin was impacted during the third and fourth quarters of 2020 due to the PPP loans that were originated. Horizon estimates that the PPP loans increased the net interest margin by 18 basis points in the fourth quarter and compressed the margin 4 basis points for the third quarter. 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 increase to the net interest margin for the twelve months of 2020 using the same assumptions was estimated to be 3 basis points.

The net interest margin was impacted during the third and fourth quarters of 2020 due to higher liquidity levels impacting the mix of interest earning assets. Horizon estimates the higher liquidity levels compressed the net interest margin by 7 basis points for the fourth quarter and 3 basis points for the third quarter. This assumes the higher liquidity level was not included in average interest earning assets or interest income. The compression to the net interest margin for the twelve months of 2020 using the same assumptions was estimated to be 4 basis points.

The net interest margin was also impacted during the third and fourth quarters of 2020 due to the issuance of $60.0 million in subordinated notes in June 2020. Horizon estimates that the subordinated notes compressed the net interest margin by 10 basis points for both the third and fourth quarters. This assumes the subordinated notes were not included in average interest bearing liabilities or interest expense and were primarily offset by a reduction in cash. The compression to the net interest margin for the twelve months of 2020 using the same assumptions was estimated to be 6 basis points.

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Non–GAAP Reconciliation of Net Interest Margin
(Dollars in Thousands, Unaudited)
	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
	2020			2020			2020			2020			2019			2020			2019
Net interest income as reported	$	43,622		$	43,397		$	42,996		$	40,925		$	41,519		$	170,940		$	160,791
Average interest earning assets	5,365,888			5,251,611			5,112,636			4,746,202			4,748,217			5,120,106			4,470,450
Net interest income as a percentage of average interest earning assets (“Net Interest Margin”)	3.34		%	3.39		%	3.47		%	3.56		%	3.58		%	3.44		%	3.69		%

Net interest income as reported	$	43,622		$	43,397		$	42,996		$	40,925		$	41,519		$	170,940		$	160,791
Acquisition–related purchase accounting adjustments (“PAUs”)	(2,461)			(1,488)			(1,553)			(1,434)			(1,042)			(6,936)			(5,590)
Prepayment penalties on borrowings	3,804			—			—			—			—			3,804			—
Adjusted net interest income	$	44,965		$	41,909		$	41,443		$	39,491		$	40,477		$	167,808		$	155,201
Adjusted net interest margin	3.44		%	3.27		%	3.35		%	3.44		%	3.49		%	3.38		%	3.57		%

Net interest margin, excluding acquisition–related purchase accounting adjustments and prepayment penalties on borrowings (“adjusted net interest margin”), was 3.44% for the fourth quarter of 2020 compared to 3.27% for the prior quarter and 3.49% for the fourth quarter of 2019. Interest income from acquisition–related purchase accounting adjustments was $2.5 million, $1.5 million and $1.0 million for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

Adjusted net interest margin was 3.38% for the year ended December 31, 2020 compared to 3.57% for the prior year. Interest income from acquisition–related purchase accounting adjustments was $6.9 million and $5.6 million for the years ended December 31, 2020 and 2019.

Lending Activity

Total loans were $3.88 billion, or $3.67 billion excluding PPP lending, on December 31, 2020. Total loans were $4.04 billion, or $3.73 billion excluding PPP lending, on September 30, 2020 and $3.64 billion on December 31, 2019. During the year ended December 31, 2020, commercial loans increased $145.6 million, mortgage warehouse loans increased $245.3 million, and loans held for sale increased $9.4 million, offset by a decrease in residential mortgage loans of $146.4 million and a decrease in consumer loans of $14.0 million.

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Loan Growth by Type, Excluding Acquired Loans
(Dollars in Thousands, Unaudited)
	December 31,		December 31,		Amount		Percent
	2020		2019		Change		Change
Commercial	$	2,192,271	$	2,046,651	$	145,620	7.1%
Residential mortgage	624,286		770,717		(146,431)		(19.0)%
Consumer	655,200		669,180		(13,980)		(2.1)%
Subtotal	3,471,757		3,486,548		(14,791)		(0.4)%
Loans held for sale	13,538		4,088		9,450		231.2%
Mortgage warehouse	395,626		150,293		245,333		163.2%
Total loans	$	3,880,921	$	3,640,929	$	239,992	6.6%

Residential mortgage lending activity for the three months ended December 31, 2020 generated $7.8 million in income from the gain on sale of mortgage loans, a decrease of $1.0 million from the third quarter of 2020's record level and an increase of $4.7 million from the fourth quarter of 2019. Total origination volume for the fourth quarter of 2020, including loans placed into the portfolio, totaled $186.1 million, representing a decrease of 10.1% from third quarter 2020 levels, and an increase of 63.3% from the fourth quarter of 2019. As a percentage of total originations, 58% of fourth quarter 2020 volume was related to refinances and 42% was for new purchases. Total origination volume of loans sold to the secondary market totaled $157.7 million, representing a decrease of 5.2% from the third quarter of 2020 and an increase of 88.8% from the fourth quarter of 2019.

Expense Management


	Three Months Ended
	December 31,			September 30,			Amount		Percent
Non–interest Expense	2020			2020			Change		Change
Salaries and employee benefits	$	20,030		$	18,832		$	1,198	6.4%
Net occupancy expenses	3,262			3,107			155		5.0%
Data processing	2,126			2,237			(111)		(5.0)%
Professional fees	691			688			3		0.4%
Outside services and consultants	2,083			1,561			522		33.4%
Loan expense	2,961			2,876			85		3.0%
FDIC insurance expense	900			570			330		57.9%
Other losses	735			114			621		544.7%
Other expense	3,665			3,422			243		7.1%
Total non–interest expense	$	36,453		$	33,407		$	3,046	9.1%
Annualized non–interest expense to average assets	2.47		%	2.30		%

Total non–interest expense was $3.0 million higher in the fourth quarter of 2020 when compared to the third quarter of 2020. Increased salaries and employee benefits reflected higher performance–based compensation accruals following improved financial performance in the second half of this year. Higher FDIC insurance expense reflected significant growth in deposits through the end of the fourth quarter of 2020. Outside services and consultants, other losses and other expenses were partially offset by a decrease in data processing.

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


	Three Months Ended
	December 31,			December 31,			Amount		Percent
Non–interest Expense	2020			2019			Change		Change
Salaries and employee benefits	$	20,030		$	16,841		$	3,189	18.9%
Net occupancy expenses	3,262			3,106			156		5.0%
Data processing	2,126			2,235			(109)		(4.9)%
Professional fees	691			520			171		32.9%
Outside services and consultants	2,083			1,415			668		47.2%
Loan expense	2,961			2,438			523		21.5%
FDIC insurance expense	900			—			900		—%
Other losses	735			377			358		95.0%
Other expense	3,665			3,718			(53)		(1.4)%
Total non–interest expense	$	36,453		$	30,650		$	5,803	18.9%
Annualized non–interest expense to average assets	2.47		%	2.32		%

Total non–interest expense was $5.8 million higher in the fourth quarter of 2020 when compared to the fourth quarter of 2019. Increases in salaries and employee benefits, FDIC insurance expense, outside services and consultants, loan expense and other losses were offset in part by decreases in data processing and other expense.


	Twelve Months Ended
	December 31,								December 31,
	2020								2019								Adjusted
Non–interest Expense	Actual			Merger Expenses		Adjusted			Actual			Merger Expenses		Adjusted			Amount Change		Percent Change
Salaries and employee benefits	$	71,082		$	—	$	71,082		$	65,206		$	(484)	$	64,722		$	6,360	9.8%
Net occupancy expenses	12,811			—		12,811			12,157			(75)		12,082			729		6.0%
Data processing	9,200			—		9,200			8,480			(360)		8,120			1,080		13.3%
Professional fees	2,433			—		2,433			1,946			(392)		1,554			879		56.6%
Outside services and consultants	7,318			—		7,318			8,152			(2,466)		5,686			1,632		28.7%
Loan expense	10,628			—		10,628			8,633			(2)		8,631			1,997		23.1%
FDIC insurance expense	1,855			—		1,855			252			—		252			1,603		636.1%
Other losses	1,162			—		1,162			740			(71)		669			493		73.7%
Other expense	14,952			—		14,952			16,466			(1,800)		14,666			286		2.0%
Total non–interest expense	$	131,441		$	—	$	131,441		$	122,032		$	(5,650)	$	116,382		$	15,059	12.9%
Annualized non–interest expense to average assets	2.34		%			2.34		%	2.47		%			2.36		%

Total non–interest expense was $9.4 million higher for the year ended December 31, 2020 when compared to the prior year. Increases in salaries and employee benefits, loan expenses, data processing, FDIC insurance expense and net occupancy expenses were offset in part by decreases in outside services and consultants expense and other expense.

Annualized non–interest expense as a percent of average assets were 2.47%, 2.30% and 2.32% for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

Annualized non–interest expense as a percent of average assets were 2.34% and 2.47% for the years ended December 31, 2020 and 2019, respectively. Annualized non–interest expense, excluding merger expenses, as a percent of average assets were 2.34% and 2.36% for the years ended December 31, 2020 and 2019, respectively.

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results

Income tax expense totaled $2.0 million for the fourth quarter of 2020, a decrease of $2.4 million when compared to the third quarter of 2020 and a decrease of $2.0 million when compared to the fourth quarter of 2019. The decrease in income tax expense in the fourth quarter of 2020 compared to the third quarter of 2020 and the fourth quarter of 2019 was primarily due to the ability to recognize solar tax credits from completed projects the Company has invested in along with an increase in tax exempt municipal investments.

Income tax expense totaled $9.9 million for the year ended December 31, 2020, a decrease of $3.4 million when compared to the same prior year period. The decrease in income tax expense was primarily due to the solar tax credits, an increase in tax exempt municipal investments and lower taxable income.

Capital

The capital resources of the Company and Horizon Bank (the “Bank”) exceeded regulatory capital ratios for “well capitalized” banks at December 31, 2020. Stockholders’ equity totaled $692.2 million at December 31, 2020 and the ratio of average stockholders’ equity to average assets was 11.82% for the year ended December 31, 2020.

Capital levels benefited from the Company’s previously disclosed public offering of subordinated notes raising $60.0 million in June 2020. Horizon’s fortress balance sheet at December 31, 2020 maintained adequate regulatory capital ratios when stress testing for highly adverse scenarios.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and the Bank as of December 31, 2020.


	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	$	650,206	14.92	%	$	348,617	8.00	%	$	457,560	10.50	%	N/A		N/A
Bank	532,315		12.21	%	348,810		8.00	%	457,813		10.50	%	$	436,013	10.00%
Tier 1 capital (to risk–weighted assets)
Consolidated	606,395		13.92	%	261,462		6.00	%	370,404		8.50	%	N/A		N/A
Bank	492,221		11.29	%	261,606		6.00	%	370,609		8.50	%	348,808		8.00%
Common equity tier 1 capital (to risk–weighted assets)
Consolidated	491,281		11.27	%	196,096		4.50	%	305,038		7.00	%	N/A		N/A
Bank	492,221		11.29	%	196,205		4.50	%	305,207		7.00	%	283,407		6.50%
Tier 1 capital (to average assets)
Consolidated	606,395		10.66	%	227,453		4.00	%	227,453		4.00	%	N/A		N/A
Bank	492,221		8.71	%	226,158		4.00	%	226,158		4.00	%	282,697		5.00	%

“The strength and resilience of Horizon’s business is demonstrated by the Company’s strong operating fundamentals, ability to consistently generate retained earnings and growth in tangible book value per share and the Company’s healthy capital position overall,” said Mr. Dwight. “Accordingly, we will continue to be opportunistic with share repurchases under our current buyback authorization, and we remain committed to maintaining our current quarterly cash dividend.”

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results

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 December 31, 2020, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $1.04 billion in unused credit lines with various money center banks, including the FHLB and the Federal Reserve Discount Window. The Bank had approximately $632.4 million of unpledged investment securities at December 31, 2020.

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, total loans and loan growth, the allowance for credit losses, 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 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 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 figures identified herein and their most comparable GAAP measures.


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

	December 31,		September 30,		June 30,		March 31,		December 31,
	2020		2020		2020		2020		2019
Total stockholders’ equity	$	692,216	$	670,293	$	652,206	$	630,842	$	656,023
Less: Intangible assets	175,140		175,107		176,020		176,961		177,917
Total tangible stockholders’ equity	$	517,076	$	495,186	$	476,186	$	453,881	$	478,106
Common shares outstanding	43,880,562		43,874,353		43,821,878		43,763,623		44,975,771
Book value per common share	$	15.78	$	15.28	$	14.88	$	14.41	$	14.59
Tangible book value per common share	$	11.78	$	11.29	$	10.87	$	10.37	$	10.63

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio
(Dollars in Thousands, Unaudited)
	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
	2020			2020			2020			2020			2019			2020			2019
Non–interest expense as reported	$	36,453		$	33,407		$	30,432		$	31,149		$	30,650		$	131,441		$	122,032
Net interest income as reported	43,622			43,397			42,996			40,925			41,519			170,940			160,791
Non–interest income as reported	$	19,733		$	16,700		$	11,125		$	12,063		$	11,934		$	59,621		$	43,058
Non–interest expense / (Net interest income + Non–interest income) (“Efficiency Ratio”)	57.54		%	55.59		%	56.23		%	58.79		%	57.34		%	57.01		%	59.86		%

Non–interest expense as reported	$	36,453		$	33,407		$	30,432		$	31,149		$	30,650		$	131,441		$	122,032
Merger expenses	—			—			—			—			—			—			(5,650)
Non–interest expense excluding merger expenses	36,453			33,407			30,432			31,149			30,650			131,441			116,382
Net interest income as reported	43,622			43,397			42,996			40,925			41,519			170,940			160,791
Prepayment penalties on borrowings	3,804			—			—			—			—			3,804			—
Net interest income excluding prepayment penalties on borrowings	47,426			43,397			42,996			40,925			41,519			174,744			160,791
Non–interest income as reported	19,733			16,700			11,125			12,063			11,934			59,621			43,058
(Gain) / loss on sale of investment securities	(2,622)			(1,088)			(248)			(339)			(10)			(4,297)			75
Death benefit on BOLI	—			(31)			—			(233)			—			(264)			(580)
Non–interest income excluding (gain) / loss on sale of investment securities and death benefit on BOLI	$	17,111		$	15,581		$	10,877		$	11,491		$	11,924		$	55,060		$	42,553
Adjusted efficiency ratio	56.48		%	56.64		%	56.49		%	59.43		%	57.35		%	57.20		%	57.23		%

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Non–GAAP Reconciliation of Return on Average Assets
(Dollars in Thousands, Unaudited)
	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
	2020			2020			2020			2020			2019			2020			2019
Average assets	$	5,864,086		$	5,768,691		$	5,620,695		$	5,257,332		$	5,250,574		$	5,628,783		$	4,933,058
Return on average assets (“ROAA”) as reported	1.49		%	1.40		%	1.05		%	0.89		%	1.40		%	1.22		%	1.35		%
Merger expenses	—			—			—			—			—			—			0.11
Tax effect	—			—			—			—			—			—			(0.02)
ROAA excluding merger expenses	1.49			1.40			1.05			0.89			1.40			1.22			1.44
(Gain) / loss on sale of investment securities	(0.18)			(0.08)			(0.02)			(0.03)			—			(0.08)			—
Tax effect	0.04			0.02			—			0.01			—			0.02			—
ROAA excluding (gain) / loss on sale of investment securities	1.35			1.34			1.03			0.87			1.40			1.16			1.44
Death benefit on BOLI	—			—			—			(0.02)			—			—			(0.01)
ROAA excluding death benefit on BOLI	1.35			1.34			1.03			0.85			1.40			1.16			1.43
Prepayment penalties on borrowings	0.26			—			—			—			—			0.07			—
Tax effect	(0.05)			—			—			—			—			(0.01)			—
ROAA excluding prepayment penalties on borrowings	1.56		%	1.34		%	1.03		%	0.85		%	1.40		%	1.22		%	1.43		%
Adjusted ROAA	1.56		%	1.34		%	1.03		%	0.85		%	1.40		%	1.22		%	1.43		%

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Non–GAAP Reconciliation of Return on Average Common Equity
(Dollars in Thousands, Unaudited)
	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
	2020			2020			2020			2020			2019			2020			2019
Average common equity	$	680,857		$	668,797		$	649,490		$	667,588		$	653,071		$	665,466		$	605,719
Return on average common equity (“ROACE”) as reported	12.79		%	12.08		%	9.07		%	7.02		%	11.26		%	10.29		%	10.98		%
Merger expenses	—			—			—			—			—			—			0.93
Tax effect	—			—			—			—			—			—			(0.16)
ROACE excluding merger expenses	12.79			12.08			9.07			7.02			11.26			10.29			11.75
(Gain) / loss on sale of investment securities	(1.53)			(0.65)			(0.15)			(0.20)			(0.01)			(0.65)			0.01
Tax effect	0.32			0.14			0.03			0.04			—			0.14			—
ROACE excluding (gain) / loss on sale of investment securities	11.58			11.57			8.95			6.86			11.25			9.78			11.76
Death benefit on BOLI	—			(0.02)			—			(0.14)			—			(0.04)			(0.10)
ROACE excluding death benefit on BOLI	11.58			11.55			8.95			6.72			11.25			9.74			11.66
Prepayment penalties on borrowings	2.22			—			—			—			—			0.57			—
Tax effect	(0.47)			—			—			—			—			(0.12)			—
ROACE excluding prepayment penalties on borrowings	13.33		%	11.55		%	8.95		%	6.72		%	11.25		%	10.19		%	11.66		%
Adjusted ROACE	13.33		%	11.55		%	8.95		%	6.72		%	11.25		%	10.19		%	11.66		%

Conference Call

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

Participants may access the live conference call on January 28, 2021 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 877–317–6789 from the United States, 866–450–4696 from Canada or 412–317–6789 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 February 4, 2021. 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 10150632.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. is an independent, commercial bank holding company serving northern and central Indiana, and southern and central Michigan through its commercial banking subsidiary, Horizon Bank. Horizon may be reached online at www.horizonbank.com. Its common stock is traded on the NASDAQ Global Select Market under the symbol HBNC.

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial 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. 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.


Financial Highlights
(Dollars in Thousands, Unaudited)

	December 31,		September 30,		June 30,		March 31,		December 31,
	2020		2020		2020		2020		2019
Balance sheet:
Total assets	$	5,886,614	$	5,790,143	$	5,739,262	$	5,351,325	$	5,246,829
Investment securities	1,302,701		1,195,613		1,126,075		1,099,943		1,042,675
Commercial loans	2,192,271		2,321,608		2,312,715		2,050,402		2,046,651
Mortgage warehouse loans	395,626		374,653		300,386		223,519		150,293
Residential mortgage loans	624,286		675,220		704,410		757,529		770,717
Consumer loans	655,200		658,884		660,871		675,849		669,180
Earning assets	5,206,645		5,262,054		5,143,978		4,835,934		4,706,051
Non–interest bearing deposit accounts	1,053,242		1,016,646		981,868		709,978		709,760
Interest bearing transaction accounts	2,802,673		2,600,691		2,510,854		2,264,576		2,245,631
Time deposits	675,218		718,952		814,877		907,717		975,611
Borrowings	475,000		587,473		583,073		704,613		549,741
Subordinated notes	58,603		58,566		58,824		—		—
Junior subordinated debentures issued to capital trusts	56,548		56,491		56,437		56,374		56,311
Total stockholders’ equity	692,216		670,293		652,206		630,842		656,023

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2020			2020			2020			2020			2019
Income statement:
Net interest income	$	43,622		$	43,397		$	42,996		$	40,925		$	41,519
Credit loss expense	3,042			2,052			7,057			8,600			340
Non–interest income	19,733			16,700			11,125			12,063			11,934
Non–interest expense	36,453			33,407			30,432			31,149			30,650
Income tax expense	1,967			4,326			1,993			1,584			3,920
Net income	$	21,893		$	20,312		$	14,639		$	11,655		$	18,543

Per share data:
Basic earnings per share	$	0.50		$	0.46		$	0.33		$	0.26		$	0.41
Diluted earnings per share	0.50			0.46			0.33			0.26			0.41
Cash dividends declared per common share	0.12			0.12			0.12			0.12			0.12
Book value per common share	15.78			15.28			14.88			14.41			14.59
Tangible book value per common share	11.78			11.29			10.87			10.37			10.63
Market value – high	15.86			11.48			12.44			18.79			19.42
Market value – low	$	10.16		$	9.05		$	8.40		$	7.97		$	16.60
Weighted average shares outstanding – Basis	43,862,435			43,862,435			43,781,249			44,658,512			44,971,676
Weighted average shares outstanding – Diluted	43,903,881			43,903,881			43,802,794			44,756,716			45,103,065

Key ratios:
Return on average assets	1.49		%	1.40		%	1.05		%	0.89		%	1.40		%
Return on average common stockholders’ equity	12.79			12.08			9.07			7.02			11.26
Net interest margin	3.34			3.39			3.47			3.56			3.58
Allowance for credit losses to total loans	1.47			1.39			1.38			1.30			0.49
Average equity to average assets	11.61			11.59			11.56			12.70			12.44
Bank only capital ratios:
Tier 1 capital to average assets	8.71			8.57			8.48			9.43			9.49
Tier 1 capital to risk weighted assets	11.29			10.67			10.49			11.83			12.20
Total capital to risk weighted assets	12.21			11.56			11.74			12.67			12.65

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
	Twelve Months Ended
	December 31,			December 31,
	2020			2019
Income statement:
Net interest income	$	170,940		$	160,791
Credit loss expense	20,751			1,976
Non–interest income	59,621			43,058
Non–interest expense	131,441			122,032
Income tax expense	9,870			13,303
Net income	$	68,499		$	66,538

Per share data:
Basic earnings per share	$	1.56		$	1.53
Diluted earnings per share	1.55			1.53
Cash dividends declared per common share	0.48			0.46
Book value per common share	15.78			14.59
Tangible book value per common share	11.78			10.63
Market value – high	18.79			19.42
Market value – low	$	7.97		$	15.50
Weighted average shares outstanding – Basis	44,044,737			43,493,316
Weighted average shares outstanding – Diluted	44,123,208			43,598,373

Key ratios:
Return on average assets	1.22		%	1.35		%
Return on average common stockholders’ equity	10.29			10.98
Net interest margin	3.44			3.69
Allowance for credit losses to total loans	1.47			0.49
Average equity to average assets	11.82			12.28
Bank only capital ratios:
Tier 1 capital to average assets	8.71			9.49
Tier 1 capital to risk weighted assets	11.29			12.20
Total capital to risk weighted assets	12.21			12.65

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Financial Highlights
(Dollars in Thousands Except Ratios, Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2020			2020			2020			2020			2019
Loan data:
Substandard loans	$	98,874		$	88,286		$	61,385		$	61,322		$	58,670
30 to 89 days delinquent	6,938			5,513			4,029			12,017			7,729

Non–performing loans:
90 days and greater delinquent – accruing interest	262			331			123			246			146
Trouble debt restructures – accruing interest	1,793			1,825			2,039			2,115			3,354
Trouble debt restructures – non–accrual	2,610			2,704			3,443			3,360			2,006
Non–accrual loans	22,142			24,454			22,451			18,281			15,679
Total non–performing loans	$	26,807		$	29,314		$	28,056		$	24,002		$	21,185
Non–performing loans to total loans	0.69		%	0.72		%	0.70		%	0.65		%	0.58		%


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

	December 31,		September 30,		June 30,		March 31,		December 31,
	2020		2020		2020		2020		2019
Commercial	$	42,210	$	39,795	$	39,147	$	32,550	$	11,996
Residential mortgage	4,620		5,464		5,832		5,654		923
Mortgage warehouse	1,267		1,250		1,190		1,055		1,077
Consumer	8,930		9,810		8,921		9,181		3,671
Total	$	57,027	$	56,319	$	55,090	$	48,440	$	17,667


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

	December 31,			September 30,			June 30,			March 31,			December 31,
	2020			2020			2020			2020			2019
Commercial	$	23		$	488		$	6		$	(20)		$	146
Residential mortgage	(10)			136			24			17			40
Mortgage warehouse	—			—			—			—			—
Consumer	216			199			377			407			443
Total	$	229		$	823		$	407		$	404		$	629
Percent of net charge–offs (recoveries) to average loans outstanding for the period	0.01		%	0.02		%	0.01		%	0.01		%	0.02		%

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


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

	December 31,			September 30,			June 30,			March 31,			December 31,
	2020			2020			2020			2020			2019
Commercial	$	14,348		$	16,169		$	14,238		$	9,579		$	7,347
Residential mortgage	7,994			9,209			9,945			10,411			9,884
Mortgage warehouse	—			—			—			—			—
Consumer	4,465			3,936			3,873			4,012			3,954
Total	$	26,807		$	29,314		$	28,056		$	24,002		$	21,185
Non–performing loans to total loans	0.69		%	0.72		%	0.70		%	0.65		%	0.58		%


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

	December 31,		September 30,		June 30,		March 31,		December 31,
	2020		2020		2020		2020		2019
Commercial	$	1,908	$	2,191	$	2,374	$	2,464	$	3,698
Residential mortgage	—		70		249		336		28
Mortgage warehouse	—		—		—		—		—
Consumer	—		80		20		13		—
Total	$	1,908	$	2,341	$	2,643	$	2,813	$	3,726

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Average Balance Sheets
(Dollars in Thousands, Unaudited)
	Three Months Ended						Three Months Ended
	December 31, 2020						December 31, 2019
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets
Interest earning assets
Federal funds sold	$	112,139	$	29	0.10	%	$	40,657	$	172	1.68	%
Interest earning deposits	28,507		52		0.73	%	12,665		58		1.82	%
Investment securities – taxable	408,412		1,489		1.45	%	491,160		2,824		2.28	%
Investment securities – non–taxable (1)	866,182		4,919		2.86	%	545,832		3,575		3.26	%
Loans receivable (2) (3)	3,950,648		46,745		4.72	%	3,657,903		46,769		5.10	%
Total interest earning assets	5,365,888		53,234		4.05	%	4,748,217		53,398		4.57	%
Non–interest earning assets
Cash and due from banks	79,753						75,248
Allowance for credit losses	(56,657)						(17,916)
Other assets	475,102						445,025
Total average assets	$	5,864,086					$	5,250,574

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits	$	3,450,824	$	2,718	0.31	%	$	3,255,725	$	8,767	1.07	%
Borrowings	511,306		5,456		4.25	%	484,729		2,281		1.87	%
Subordinated notes	58,581		871		5.91	%	—		—		—	%
Junior subordinated debentures issued to capital trusts	56,512		567		3.99	%	54,489		831		6.05	%
Total interest bearing liabilities	4,077,223		9,612		0.94	%	3,794,943		11,879		1.24	%
Non–interest bearing liabilities
Demand deposits	1,037,232						747,513
Accrued interest payable and other liabilities	68,774						55,047
Stockholders’ equity	680,857						653,071
Total average liabilities and stockholders’ equity	$	5,864,086					$	5,250,574

Net interest income / spread			$	43,622	3.11	%			$	41,519	3.33	%
Net interest income as a percent of average interest earning assets (1)					3.34	%					3.58	%

(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. Announces Record Fourth Quarter 2020 Financial Results


Average Balance Sheets
(Dollars in Thousands, Unaudited)
	Twelve Months Ended						Twelve Months Ended
	December 31, 2020						December 31, 2019
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets
Interest earning assets
Federal funds sold	$	61,408	$	154	0.25	%	$	21,301	$	511	2.40	%
Interest earning deposits	25,943		268		1.03	%	19,601		342		1.74	%
Investment securities – taxable	459,551		8,071		1.76	%	474,833		11,753		2.48	%
Investment securities – non–taxable (1)	706,092		17,213		3.09	%	454,066		12,095		3.34	%
Loans receivable (2) (3)	3,867,112		179,672		4.66	%	3,500,649		183,631		5.27	%
Total interest earning assets	5,120,106		205,378		4.11	%	4,470,450		208,332		4.75	%
Non–interest earning assets
Cash and due from banks	84,065						62,920
Allowance for credit losses	(46,329)						(18,019)
Other assets	470,941						417,707
Total average assets	$	5,628,783					$	4,933,058

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits	$	3,327,917	$	18,556	0.56	%	$	3,007,937	$	33,690	1.12	%
Borrowings	559,953		11,430		2.04	%	468,159		10,672		2.28	%
Subordinated notes	30,610		1,824		5.96	%	—		—		—	%
Junior subordinated debentures issued to capital trusts	56,427		2,628		4.66	%	50,134		3,179		6.34	%
Total interest bearing liabilities	3,974,907		34,438		0.87	%	3,526,230		47,541		1.35	%
Non–interest bearing liabilities
Demand deposits	919,449						757,389
Accrued interest payable and other liabilities	68,961						43,720
Stockholders’ equity	665,466						605,719
Total average liabilities and stockholders’ equity	$	5,628,783					$	4,933,058

Net interest income / spread			$	170,940	3.24	%			$	160,791	3.40	%
Net interest income as a percent of average interest earning assets (1)					3.44	%					3.69	%

(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. Announces Record Fourth Quarter 2020 Financial Results


Condensed Consolidated Balance Sheets
(Dollars in Thousands)

	December 31, 2020		December 31, 2019
	(Unaudited)
Assets
Cash and due from banks	$	249,711	$	98,831
Interest earning time deposits	8,965		8,455
Investment securities, available for sale	1,134,025		834,776
Investment securities, held to maturity (fair value $179,990 and $215,147)	168,676		207,899
Loans held for sale	13,538		4,088
Loans, net of allowance for credit losses of $57,027 and $17,667	3,810,356		3,619,174
Premises and equipment, net	92,416		92,209
Federal Home Loan Bank stock	23,023		22,447
Goodwill	151,238		151,238
Other intangible assets	23,902		26,679
Interest receivable	21,396		18,828
Cash value of life insurance	96,751		95,577
Other assets	92,617		66,628
Total assets	$	5,886,614	$	5,246,829

Liabilities
Deposits
Non–interest bearing	$	1,053,242	$	709,760
Interest bearing	3,477,891		3,221,242
Total deposits	4,531,133		3,931,002
Borrowings	475,000		549,741
Subordinated notes	58,603		—
Junior subordinated debentures issued to capital trusts	56,548		56,311
Interest payable	2,712		3,062
Other liabilities	70,402		50,690
Total liabilities	5,194,398		4,590,806
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 43,905,631 and 45,000,840 shares, Outstanding 43,880,562 and 44,975,771 shares	—		—
Additional paid–in capital	362,945		379,853
Retained earnings	301,419		269,738
Accumulated other comprehensive income	27,852		6,432
Total stockholders’ equity	692,216		656,023
Total liabilities and stockholders’ equity	$	5,886,614	$	5,246,829

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2020		2020		2020		2020		2019
Interest income
Loans receivable	$	46,745	$	44,051	$	43,918	$	44,958	$	46,769
Investment securities – taxable	1,570		1,704		2,321		2,898		3,054
Investment securities – non–taxable	4,919		4,391		4,105		3,798		3,575
Total interest income	53,234		50,146		50,344		51,654		53,398
Interest expense
Deposits	2,718		3,616		4,506		7,716		8,767
Borrowed funds	5,456		1,662		2,074		2,238		2,281
Subordinated notes	871		895		58		—		—
Junior subordinated debentures issued to capital trusts	567		576		710		775		831
Total interest expense	9,612		6,749		7,348		10,729		11,879
Net interest income	43,622		43,397		42,996		40,925		41,519
Credit loss expense	3,042		2,052		7,057		8,600		340
Net interest income after credit loss expense	40,580		41,345		35,939		32,325		41,179
Non–interest Income
Service charges on deposit accounts	2,360		2,154		1,888		2,446		2,766
Wire transfer fees	301		298		230		171		179
Interchange fees	2,645		2,438		2,327		1,896		1,996
Fiduciary activities	2,747		2,105		1,765		2,528		2,594
Gains / (losses) on sale of investment securities	2,622		1,088		248		339		10
Gain on sale of mortgage loans	7,815		8,813		6,620		3,473		3,119
Mortgage servicing income net of impairment	327		(1,308)		(2,760)		25		294
Increase in cash value of bank owned life insurance	566		566		557		554		566
Death benefit on bank owned life insurance	—		31		—		233		—
Other income	350		515		250		398		410
Total non–interest income	19,733		16,700		11,125		12,063		11,934
Non–interest expense
Salaries and employee benefits	20,030		18,832		15,629		16,591		16,841
Net occupancy expenses	3,262		3,107		3,190		3,252		3,106
Data processing	2,126		2,237		2,432		2,405		2,235
Professional fees	691		688		518		536		520
Outside services and consultants	2,083		1,561		1,759		1,915		1,415
Loan expense	2,961		2,876		2,692		2,099		2,438
FDIC insurance expense	900		570		235		150		—
Other losses	735		114		193		120		377
Other expenses	3,665		3,422		3,784		4,081		3,718
Total non–interest expense	36,453		33,407		30,432		31,149		30,650
Income before income taxes	23,860		24,638		16,632		13,239		22,463
Income tax expense	1,967		4,326		1,993		1,584		3,920
Net income	$	21,893	$	20,312	$	14,639	$	11,655	$	18,543
Basic earnings per share	$	0.50	$	0.46	$	0.33	$	0.26	$	0.41
Diluted earnings per share	0.50		0.46		0.33		0.26		0.41

Horizon Bancorp, Inc. Announces Record Fourth Quarter 2020 Financial Results


Condensed Consolidated Statements of Income
(Dollars in Thousands, Expect Per Share Data, Unaudited)
	Twelve Months Ended
	December 31,
	2020		2019
Interest income
Loans receivable	$	179,672	$	183,631
Investment securities – taxable	8,493		12,606
Investment securities – non–taxable	17,213		12,095
Total interest income	205,378		208,332
Interest expense
Deposits	18,556		33,690
Borrowed funds	11,430		10,672
Subordinated notes	1,824		—
Junior subordinated debentures issued to capital trusts	2,628		3,179
Total interest expense	34,438		47,541
Net interest income	170,940		160,791
Credit loss expense	20,751		1,976
Net interest income after credit loss expense	150,189		158,815
Non–interest income
Service charges on deposit accounts	8,848		9,959
Wire transfer fees	1,000		653
Interchange fees	9,306		7,655
Fiduciary activities	9,145		8,580
Gains / (losses) on sale of investment securities	4,297		(75)
Gain on sale of mortgage loans	26,721		9,208
Mortgage servicing income net of impairment	(3,716)		1,914
Increase in cash value of bank owned life insurance	2,243		2,190
Death benefit on bank owned life insurance	264		580
Other income	1,513		2,394
Total non–interest income	59,621		43,058
Non-interest expense
Salaries and employee benefits	71,082		65,206
Net occupancy expenses	12,811		12,157
Data processing	9,200		8,480
Professional fees	2,433		1,946
Outside services and consultants	7,318		8,152
Loan expense	10,628		8,633
FDIC insurance expense	1,855		252
Other losses	1,162		740
Other expense	14,952		16,466
Total non–interest expense	131,441		122,032
Income before income taxes	78,369		79,841
Income tax expense	9,870		13,303
Net income	$	68,499	$	66,538
Basic earnings per share	$	1.56	$	1.53
Diluted earnings per share	$	1.55	$	1.53

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 | JANUARY 27, 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 ® 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, 2019, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, 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 38-49. 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 2020 Highlights ($000s except per share data) 2020 Change % vs. 2019 Income Statement Net interest income $170,940 6.3% Non-interest income $59,621 38.5% Reported net income $68,499 3.0% Diluted EPS $1.55 1.3% Efficiency ratio 57.01% (4.8)% Balance Sheet Average earning assets $5,120,106 14.5% Average total loans $3,867,112 10.5% Average total deposits $4,247,366 12.8% Credit Quality Non-performing assets $28,715 15.2% Allowance for credit losses to total loans 1.47% 98 bps NPA ratio 0.49% 2 bps Net charge-offs to avg. loans for the period 0.05% (1) bps Capital Tangible book value per share $11.78 10.8% Book value per share $15.78 8.2% Dividends payout ratio 30.8% Record revenues • Net interest income up >6% • Non-interest income up >28%, ex securities sale gains Record mortgage growth from prior year • Record volume and gains on sale up >190% • All mortgage-related non-interest income up >106% Profitably grew and strengthened balance sheet • Net income increased 3% • Pre-tax pre-provision income increased >21% • Average earning assets up >14% Continued solid asset quality at 12/31/20 • NPAs/total assets of 0.49% • ACL/Loans of 1.55% ex. PPP • NCOs/average 2020 loans of 0.05% Disciplined expense management • Non-interest expense/av. assets improved to 2.34% • Efficiency ratio improved 285 bps to 57.01% Uninterrupted quarterly cash dividend for 30 years • Cash on hand at holding company represents approximately 18 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 ® 5 • 31 Years of Banking & Public Accounting Experience • 11 Years with Horizon as CFO Executive Vice President of Horizon • 35 Years of Banking Experience • 10 Years with Horizon, 2 years as Chief Commercial Banking Officer • 41 Years of Banking Experience • 21 Years as President or CEO of Bank • 42 Years of Banking Experience • 2 Years as President • 19 Years as Senior Mortgage and Retail Credit Officer Craig M. Dwight Chairman & CEO James D. "Jim" Neff President Dennis J. Kuhn EVP & Chief Commercial Banking Officer Mark E. Secor EVP & Chief Financial Officer • 30 Years of Banking and Operational Experience • 19 Years as Senior Bank Operations Officer Kathie A. DeRuiter EVP & Senior Operations Officer • 28 Years of Corporate Legal Experience and 9 years of General Counsel Experience • 3 Years as SVP and General Counsel Todd A. Etzler EVP & Corporate Secretary & General Counsel SEASONED LEADERSHIP • Executive team has collectively >200 total years’ banking experience • Horizon’s middle management team on average has >25 years of banking experience • Horizon’s employees understand the value of work Seasoned Management Team • 25 Years of Banking Experience • 3 Years with Horizon as Senior Commercial Credit Officer Lynn M. Kerber EVP & Commercial Credit Officer

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 2002 - 2007 Organic M&A • St. Joseph, MI • South Bend, IN • Elkhart, IN • Merrillville, IN • Anchor Mortgage • Alliance Financial 2008 - 2013 Organic M&A • Kalamazoo, MI • Indianapolis, IN • American Trust • Heartland Bancshares 2014 - 2020 Organic M&A • Carmel, IN • Ft. Wayne, IN • Grand Rapids, MI • Columbus, OH(1) • Noblesville, IN • Holland, MI • 1st Mtg. • Summit • Peoples • Farmers • LaPorte • CNB • Bargersville • Lafayette • Wolverine • Salin 11 14 Organic Expansions M&A (1) Columbus location closed February 2018. A History of Profitable Growth Extensive and Diligent M&A Expertise Supplements Organic Growth $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 $5 $7 $7 $7 $7 $8 $9 $9 $10 $13 $20 $20 $18 $21 $24 $33 $53 $67 $68 - 10 20 30 40 50 60 70 80 - 1.00 2.00 3.00 4.00 5.00 6.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Assets ($B) Net Income ($M)

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 Well-Established Long-Term Goals Meaningfully outpace GDP and industry ~50/50 growth organic/acquired Organic growth of ≥3x GDP growth 2009 - 2019 2014 - 2019 Source: Federal Reserve Bank of St. Louis and company data. Built to Outpace GDP & Industry Over Long-Term Assets grew 8% ex. PPP during 2020 and are expected to remain stable in 2021 14% average asset growth 4.7x GDP 3.3x banks 20% average asset growth 5.2x GDP 5.2x banks 23% 5% 21% 23% 8% 3% 4% 6% 1% 10% 20% -5% 18% 28% 18% 26% 7% 24% 12% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HBNC Annual Asset Growth, ex. PPP HBNC PPP Asset Growth GDP Annual Growth

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 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 ® 8 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 73 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 12/31/20 and do not include Mortgage Warehouse. INDIANA 12/31/20 Loans: $2.1B 60% of Loans MICHIGAN 12/31/20 Loans: $1.4B 40% of Loans OHIO ILLINOIS WISCONSIN KENTUCKY MICHIGAN $1.4B IN LOANS INDIANA $2.1B 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 ® 9 Michigan City, IN / La Porte, IN (Legacy) Indianapolis, IN (Growth) Northwest Indiana (Growth) Lafayette, IN (Growth) Southwest Michigan* (Growth) $1.1B Deposits $680M Deposits $548M Deposits $322M Deposits$413M Deposits 8 Branches 9 Branches 10 Branches 7 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 • Over $500M in new investment and 4,000 new jobs created in 2019 • 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. *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 ® EMPLOYEES CONSUMERS BUSINESSES COMMUNITIES Safety and well being of employees & families is our first priority Implemented pandemic plan in March after completing test run in February 2020 Installed sneeze guards, customer directional signage, implemented mask requirements, and continuing with sanitizing and social distancing protocols. Steadily reducing percentage of employees working remotely from early second quarter peak Increased PTO / sick time benefits 100% of our branch locations are open by appointment only Installed nine additional Interactive Teller Machines (ITMs) staffed by Remote Video Tellers for a total of 33 ITMs Opened fourth call center location Payment Relief: • Approximately $6 million in consumer & mortgage loans with payment extensions, down from $8 million at September 30, 2020 and $63 million at June 30, 2020 • Continue to provide new loans to qualified applicants • Providing mortgage loan education programs • Providing additional financial assistance in the form of fee waivers, freeze on all debt collection activities Preferred SBA Lender: • Active Participant in all SBA loan programs (PPP, 7a, Express & 504) Payment Relief Programs: • Approximately $121 million in commercial loans with payment extensions, down from $152 million at September 30, 2020 and $470 million at June 30, 2020 • Processed and received approval for 2,438 PPP loans (Rounds One and Two), funding approximately $310.9 million • Began accepting PPP forgiveness applications on September 1, 2020 • As of December 31, 2020, $102.8 million forgiven. • Opened 2021 PPP program applications for current and prospective clients • Continue to provide new loans to qualified applicants Increased volunteerism in support of local not-for-profit entities Contributed over $300,000 to COVID-19 related not-for-profit efforts (local food banks, United Way, housing) Participating in community conference calls related to COVID-19 Partnered with local neighborhood housing partnerships to provide funding for low to moderate income families Partnered with local Certified Development Corporations to provide capital to small businesses Supported flood victims in Midland, Michigan 10 Note: Modification and PPP data as of December 31, 2020 COVID-19 Response Supporting Employees, Customers & Communities

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 ® 73,340 92,498 105,240 65% 66% 75% 60% 64% 68% 72% 76% 80% 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 December 2018 December 2019 December 2020 Active Online Banking Users Active Online Banking Users As a Percentage to Checking Accounts 11 • Approximately 75% of demand deposit account holders were active online banking users at December 31, 2020 • Approximately 73% of transactions in December 2020 were Digital & Virtual • Third quarter upgrade - live online chat support, with over 85% of the responses from bots • Fourth quarter upgrade - online and mobile deposit account opening 27% 48% 44% 57% 73% 0% 10% 20% 30% 40% 50% 60% 70% 80% - 100,000 200,000 300,000 400,000 500,000 600,000 2016 2017 2018 2019 2020 December MTD Transaction Volume Digital Transactions Branch Transactions % Digital Transactions Digital Transformation

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 ® 12 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 ® 13 $ 0 0 0 s $22,803 $21,839 $23,688 $26,690 $26,902 $18,535 $11,154 $14,443 $19,421 $22,827 $0.41 $0.24 $0.32 $0.45 $0.52 4Q19 1Q20 2Q20 3Q20 4Q20 Adj. Net Income(1) Pre-tax, Pre-provision Income Adj. Net Income Adj. EPS 1.74% 1.63% 1.68% 1.76% 1.91% 4Q19 1Q20 2Q20 3Q20 4Q20 Adj. PTPP ROAA(1) Adj. PTPP ROAA $40,477 $39,491 $41,443 $41,909 $44,965 3.49% 3.44% 3.35% 3.27% 3.44% 4Q19 1Q20 2Q20 3Q20 4Q20 Adj. Net Interest Income(1) Adj. Net Interest Income Adj. NIM $ 0 0 0 s (1) Footnote Index included in Appendix (see slides 37-49 for non-GAAP reconciliation) 1.40% 0.85% 1.03% 1.34% 1.56% 4Q19 1Q20 2Q20 3Q20 4Q20 Adj. ROAA(1) Adj. ROAA 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 ® 3.36% 3.42% 3.31% 3.45% 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% 0.66%0.63% 0.62% 0.50% 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% 0.46% 0.50% 0.50%0.50% 0.55% 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% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Stable Net Interest Margin Adj. NIM (1) Adj. Cost of Core Funds (1) Avg. Fed Funds Rate (2) • PPP loans increased the fourth quarter margin an additional ~ 18bps • The cost of the subordinated debt in the third and fourth quarters lowered the margin ~ 10bps 14 (1) Footnote Index included in Appendix (see slides 37, 42-47 for non-GAAP reconciliation) (2) Source: S&P Global Market Intelligence. Stable 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 ® PPP loans: • Increased the fourth quarter 2020 loan yield an additional ~ 15bps • Compressed the third quarter 2020 loan yield ~ 13bps Commercial loans: • 61% fixed / 39% variable • 24% of variable rate commercial loans have floors, 78% of which are at their floor Retained Mortgage loans: • 32% fixed / 68% variable • 98% of variable rate mortgage loans have floors, 6% of which are at their floor Consumer loans: • 65% fixed / 35% variable • 42% of variable rate consumer loans have floors, 69% of which are at their floor 15 Stable Loan Yields Directionally Consistent with Funding Costs $3.0 $3.6 $3.7 $3.7 $3.6 $3.7 $4.0 $4.0 $4.0 5.14% 5.27% 5.29% 5.41% 5.10% 5.03% 4.54% 4.39% 4.72% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Yield on Loans (%) / Total Loans ($B) Total 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 23% Interest bearing(1) 60% CDs 17% 16 • Non-interest bearing balances increased 4% • Quick and decisive action to reprice deposits began immediately after the Fed’s interest rate cuts in March 2020 resulting in interest bearing deposit account costs of 0.11% • CDs maturing in 2021 total $445 million with a weighted average rate of 0.93% • Account and deposit retention data very strong to date Average Cost(1) Average Deposits ($000s) 4Q 2020 Average Balances 3Q 2020 Average Balances 4Q 2020 (QTD) 3Q 2020 (QTD) Non-interest bearing $1,037,232 $996,427 0.00% 0.00% Interest bearing $2,757,275 $ 2,546,823 0.11% 0.13% Time Deposits (CDs) $693,549 $787,613 1.12% 1.42% Total Deposits $ 4,488,056 $ 4,330,863 0.24% 0.33% (1) Footnote Index included in Appendix (see slides 37 and 48 for non-GAAP reconciliation) Strong Core Deposits CD Re-Pricing Opportunities Total Deposits at 12/31/20 $4.5B

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, 12% State and municipal, 76% Federal agency MBS, 10% U.S. Treasury, 1% Corporate, 1% 17 • Improved and strong liquidity position and borrowing capacity as of 12/31/20 • $1.3B securities portfolio consistently managed for liquidity rather than return • Ample sources of liquidity at the holding company including ~$127.0M of unencumbered cash (as of 12/31/20) and increased security portfolio by $100.0M • Expected additional liquidity from forgiveness of PPP loans, warehouse loan balances returning to normal levels when refinance activity decreases and continued deposit growth • Deleverage strategy completed in 4th quarter by prepaying $83.0M in FHLB advances with a weighted average cost of 2.61% via $62.0M in cash and $21.0M in security sales resulting in ~ $1.2M in prepayment penalties, net of gain on sale of securities. Strong Liquidity Position Securities Portfolio at December 31, 2020: $1.3B Bank Level Liquidity ($M) (12/31/20) Available Unused Line Liquidity FHLB Advances $373 Federal Reserve Discount Window 485 Unsecured Fed Funds 180 TOTAL $1,038

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 ® $7,815 $2,747 $2,360 $2,645 $327 $3,839 Mtg. Loan Sales Fiduciary Activities Service Charges - Deposits Interchange Fees Mtg. Servicing Other $ 0 0 0 s 18 $459,840 $361,463 $365,865 $408,972 $756,859 2016 2017 2018 2019 2020 $ 0 0 0 s $1,908 $1,583 $2,120 $1,914 -$3,716 $11,675 $7,906 $6,613 $9,208 $26,721 2016 2017 2018 2019 2020 Servicing, net Gain on Sale $ 0 0 0 s Mortgage Contribution Q4 ‘20 Non-interest Income Breakout Q4 ‘20 Highlights • Diverse sources of non-interest income, representing 31.1% of total revenue • Record fourth-quarter mortgage gain on sale and all mortgage-related non- interest income up 8.5% from linked quarter • Growth in service charges, interchange and fiduciary fees Diverse Sources of Revenue Mortgage Volume

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 ® • Adjusted efficiency ratio (excluding prepayment penalties on borrowings and securities gains) improved to 56.5% • Annualized non-interest expense represented 2.34% of average assets for the twelve months ending 2020 • Salaries and employee benefits reflect higher performance-based compensation accruals with record 2020 net interest income, non-interest income, mortgage revenue and other key performance metrics 19 Efficiency Ratio(1) 4Q ’20 Highlights (1) Footnote Index included in Appendix (see slides 37 and 49 for non-GAAP reconciliation) Focus on Expense Control 57.3% 58.8% 56.2% 55.6% 57.5% 57.4% 59.4% 56.5% 56.6% 56.5% 4Q19 1Q20 2Q20 3Q20 4Q20 Efficiency Ratio Adj. Efficiency Ratio $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 4Q19 1Q20 2Q20 3Q20 4Q20 Non-interest Expense Breakout ($M) Salaries & Employee Benefits Net Occupancy Expenses Data Processing Professional Fees Outside Services & Consultants Loan Expense Other

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 CECL Adoption ($000s, unaudited) 12/31/19 Impact Day One 1/1/20 Net Reserve Build(1) 1Q20 Net Reserve Build(1) 2Q20 Net Reserve Build(1) 3Q20 Net Reserve Build(1) 4Q20 12/31/20 Commercial $ 11,996 $ 13,618 $ 25,614 $ 6,936 $ 6,597 $ 648 $ 2,415 $ 42,210 Retail Mortgage 923 4,048 4,971 683 178 (368) (844) 4,620 Warehousing 1,077 - 1,077 (22) 135 60 17 1,267 Consumer 3,671 4,911 8,582 599 (260) 1,088 (880) 8,930 Allowance for Credit Losses $ 17,667 $ 22,577 $ 40,244 $ 8,196 $ 6,650 $ 1,229 $ 708 $ 57,027 ACL/Total Loans 0.49% 1.10% 1.47% Acquired Loan Discount $ 20,228 $ (2,786) $ 17,442 $ (1,436) $ (1,532) $ (1,541) $ (1,439) $ 11,494 (1) Net Reserve Build is equal to the provision for credit losses net of net charge-offs/recoveries. CECL Implementation Driving Reserve Build

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 ® 10.8% 11.5% 11.1% 11.6% 12.0% 11.3% 11.3% 11.5% 11.5% 11.9% 11.7% 11.5% 2015 2016 2017 2018 2019 2020 9.8% 10.4% 9.9% 10.1% 10.5% 10.7% 9.4% 9.3% 9.7% 9.9% 9.7% 9.0% 2015 2016 2017 2018 2019 2020 14.0% 13.9% 12.9% 13.4% 14.0% 14.9% 13.1% 13.2% 13.5% 13.7% 13.4% 13.8% 2015 2016 2017 2018 2019 2020 Source: S&P Global Market Intelligence. Note: Company closed the acquisition of Salin Bancshares, Inc. in March 2019. 21 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 7.6% 8.3% 8.5% 8.8% 9.3% 9.1% 8.7% 8.7% 9.1% 9.2% 9.3% 8.5% 2015 2016 2017 2018 2019 2020 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 ® 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 ® Commercial, $2,192M, 57% Residential Mortgage, $624M, 16% Consumer, $655M, 17% Mortgage Warehouse, $396M, 10% Held For Sale, $14M, 0% 23 Gross Loans at 12/31/20 $3.8B Diversified & Granular Loan Portfolio Commercial Loans by Industry ($M) 12/31/20 Balance % of Commercial Portfolio % of Total Loan Portfolio Lessors – Residential Multi Family $231 10.5% 6.0% Office (except medical) 165 7.5% 4.3% Health Care, Educational & Social 162 7.4% 4.2% Individuals and Other Services 145 6.6% 3.7% Hotel 143 6.5% 3.7% Real Estate Rental & Leasing 140 6.4% 3.6% Retail 135 6.2% 3.5% Construction 125 5.7% 3.2% Manufacturing 105 4.8% 2.7% Restaurants 84 3.8% 2.2% Lessors – Student Housing 79 3.6% 2.0% Professional & Technical Services 76 3.5% 2.0% Warehouse/Industrial 75 3.4% 1.9% Medical Office 67 3.1% 1.7% Retail Trade 66 3.0% 1.7% Mini Storage 60 2.7% 1.5% Farm Land 46 2.1% 1.2% Transportation & Warehousing 45 2.1% 1.2% Leisure and Hospitality 36 1.6% 0.9% Wholesale Trade 35 1.6% 0.9% Lessors – Residential 1–4 Family 27 1.2% 0.7% Agriculture 27 1.2% 0.7% Government 25 1.1% 0.6% Other 93 4.4% 2.4% Total $2,192 100.0% 56.5%

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 Deferrals Decline to 3.3% of Loans Down from 14.3% of portfolio at June 30, 2020 ($ in millions) Net Type of Loan # Net Balance % of Total % of Portfolio # Net Balance % of Total % of Portfolio Balance % Decrease Commercial 61 $152.0 94.9% 6.5% 55 $120.7 95.3% 5.5% -20.6% Mortgage (Retained Only) 28 6.6 4.1% 1.0% 26 5.2 4.1% 0.8% -21.2% Indirect Auto 17 0.4 0.2% 0.1% 10 0.2 0.3% 0.1% -50.0% Direct 14 0.5 0.3% 0.7% 8 0.3 0.2% 0.4% -40.0% Consumer Revolving 10 0.6 0.3% 0.3% 4 0.3 0.2% 0.1% -50.0% Total 130 $160.1 100.0% 4.1% 103 $126.7 100.0% 3.3% -20.9% Mortgage (Serviced Only) 162 66 Payment Extensions / Modifications By Loan Type September 30, 2020 December 31, 2020 ($ in millions) Type of Loan # Net Balance # Net Balance # Net Balance # Net Balance Commercial 28 $82.2 33 $69.8 2 $5.5 53 $115.2 Mortgage (Retained Only) 24 6.6 0 0.0 26 5.2 0 0.0 Indirect Auto 16 0.4 0 0.0 10 0.2 0 0.0 Direct 14 0.5 0 0.0 8 0.3 0 0.0 Consumer Revolving 6 0.3 4 0.3 1 0.0 3 0.3 Total 88 $90.0 37 $70.1 47 $11.2 56 $115.5 ($ in millions) Type of Loan # Net Balance # Net Balance # Net Balance # Net Balance Commercial 35 $37.9 26 $114.1 20 $31.7 35 $89.0 Mortgage (Retained Only) 24 6.6 0 0.0 21 4.7 5 0.5 Indirect Auto 16 0.4 0 0.0 10 0.2 0 0.0 Direct 14 0.5 0 0.0 5 0.2 3 0.1 Consumer Revolving 10 0.6 0 0.0 4 0.3 0 0.0 Total 99 $46.0 26 $114.1 60 $37.1 43 $89.6 90 Days or Less Over 90 Days 90 Days or Less Over 90 Days Type Type Principal & Interest Interest Only Principal & Interest Interest Only Payment Extensions / Modifications By Term September 30, 2020 December 31, 2020 Type Type Payment Extensions / Modifications By Type September 30, 2020 December 31, 2020

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 ® • Experienced commercial lenders (20+ years on average) • Focus on in-market sponsors in resilient markets • Predominantly a secured lender with recourse to owners • Prudent underwriting standards Northern Indiana, 24% Central Indiana, 33% Other, 1% Michigan, 42% Geography at 12/31/20 Non-Owner Occupied Real Estate, 45.6% C&I, 29.0% Owner Occ. Real Estate, 20.5% Agriculture, 3.3% Develop./Land, 1.2% Res. Spec. Homes, 0.5% Category at 12/31/20 Geography at June 30, 2020 $2.2 billion in Total Commercial Loans Diversified Commercial Lending 25 • 30-89 days past due • 4Q20 – 0.15% • 3Q20 – 0.05% • NPLs • 4Q20 – 0.65% • 3Q20 – 0.69%

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 Hotels • 16 relationships with $142.7M outstanding across 28 projects • Average LTV of 58% and average loan size of ~ $4.0M • 77% select service / 11% full service / 7% independent / 5% economy properties • Modifications of $103.2M; (72%) • 95% of modifications paying interest monthly • Located primarily along major interstates; (85%) • Concentrated in Marriott, Hilton, IHG brands; (88%) • 71% of portfolio with sponsors exhibiting verified liquidity >$10M Restaurants • Over 175 borrowers with $63.7M outstanding (excluding PPP loans) • Average loan size of ~ $365,000 • 36% full-service / 52% limited-service • Modifications of $2.7M; (4%) • Franchise restaurants $40.7M outstanding; (64%) • All loans making payments, modified interest-only Leisure & Hospitality • 58 borrowers with $30.7M outstanding (excluding PPP loans) • Average loan size of ~ $529,000 • Diverse borrowers, i.e. golf courses, entertainment facilities, fitness establishments, zoo • One modified loan (interest-only) for $130,000 • Golf courses largest exposure at $6.8M; (22%) • Golf courses average LTV of 39% Hotel, 3.7% Restaurant, 1.6% Leisure & Hospitality, 0.8% Note: Modification data as of 12/31/20. Outstandings data as of 12/31/20. Sectors with Escalated Monitoring Hotel, Restaurant, and Leisure & Hospitality $3.88B in Total Loans Outstanding at 12/31/20

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 HOTEL SECTOR 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 ® 27 FAVORABLE LOCATIONS Majority are located near major interstate highways or resort communities, which have rebounded faster than hotels located in metropolitan areas 95% of modified Hotel loans making interest payments monthly ALL HOTELS OPEN All hotel loans in Horizon’s portfolio are open for business, with occupancy rates ranging 22% - 55% Strong brands including Marriott, Hilton, IHG, Wyndham, Choice Hotels and independent brands Borrowers are long-time operators that have managed through multiple economic cycles and most have liquid resources available to them . INDIANA MICHIGAN OHIO ILLINOIS WISCONSIN KENTUCKY 16 Relationships 28 Projects $143M Outstanding 3.7% of Total 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 ® $629 $404 $407 $823 $229 0.02% 0.01% 0.01% 0.02% 0.01% 4Q19 1Q20 2Q20 3Q20 4Q20 Net Charge Offs NCOs NCOs/Average Loans $ 0 0 0 s $21,185 $24,002 $28,056 $29,314 $26,807 0.58% 0.65% 0.70% 0.72% 0.69% 4Q19 1Q20 2Q20 3Q20 4Q20 Non-Performing Loans NPLs (period end) NPLs/Loans (period end) $ 0 0 0 s $340 $8,600 $7,057 $2,052 $3,042 4Q19 1Q20 2Q20 3Q20 4Q20 $ 0 0 0 s 28 CECL CECL $17,667 $48,440 $55,090 $56,319 $57,027 0.49% 1.30% 1.38% 1.39% 1.47% 4Q19 1Q20 2Q20 3Q20 4Q20 ACL ACL/Loans CECL Strong Asset Quality Metrics Through the Fourth Quarter Allowance for Credit Losses (“ACL”) (CECL Implementation 1Q20) $ 0 0 0 s Credit Loss Expense (CECL Implementation 1Q20) CECL 4Q20 ACL/Loans excluding PPP Loans = 1.55% 4Q20 ACL/Loans excluding PPP & Warehouse Loans = 1.74% CECL

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 Key Franchise Highlights Seasoned management team – over 200 years combined banking experience Geographic diversification & exposure – strong market share in core footprint Stable Midwest markets with balanced industrial bases and growth opportunities High quality balance sheet with strong liquidity – approximately $1.6 billion of cash and securities as of 12/31/20 Robust capital position 13.9% Tier 1 and 14.9% Total RBC as of 12/31/20 Diversified loan portfolio and 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 that represents approximately 18 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 ® 30 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 ® 31 Leveraging the CARES Act to provide additional support to small businesses and their employees • PPP loans totaled ~ $208.9 million through December 31, 2020 • Average loan size less than $125,000 • Continue to process PPP forgiveness applications • Outstanding deferred fees ~ $4.0 million as of December 31, 2020 > $1M, 39% > $350K - $1M, 20% > $50K - $150K, 17% > $150K - $350K, 16% $50K and under, 8% 1,678 PPP Loans Outstanding Payroll Protection Program Through December 31, 2020

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% 4% 4% 6% 6% 7% 10% Lessors - Residential 1-4 Farm Land Mini Storage Medical Office All Others Warehouse/ Industrial Lessors Student Housing Motel Retail Office (except medical) Lessors - Residential Multi 1% 1% 1% 1% 1% 2% 2% 2% 3% 3% 4% Wholesale Trade Professional & Technical Services Leisure and Hospitality All Others Construction Manufacturing Restaurants Retail Trade Health Care, Edu. Social Assist. Individuals and Other Services Real Estate Rental & Leasing 1% 1% 1% 1% 2% 2% 2% 2% 2% 3% 4% 4% 5% Retail Trade Wholesale Trade Administrative Services Agriculture Transportation & Warehousing All Others Real Estate Rental & Leasing Restaurants Professional & Technical Services Manufacturing Individuals and Other Services Construction Health Care, Educational Social Assist. 32 Non-Owner Occupied CRE – % of Total Commercial Loans Owner Occupied CRE – % of Total Commercial Loans 49% of Total Commercial Loans $1.1 billion 21% of Total Commercial Loans $0.4 billion C&I Loans – % of Total Commercial Loans 30% of Total Commercial Loans $0.7 billion Note: Data as of 12/31/20. 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 ® 33 • 99.3% secured consumer loans • 94.3% prime, with credit scores ≥700 for 82.1% of portfolio and <640 for 5.7% • Rescored annually • HELOC combined LTV limited to 89.9% • Strong asset quality through end of 4Q20 • 30-89 days past due • 4Q20 – 0.41% • 3Q20 – 0.39% • NPLs • 4Q20 – 0.68% • 3Q20 – 0.60% Indirect Auto, 53.9% Direct Auto, 2.7% Home Equity Term, 4.8% HELOCs, 35.1% RV & Boat, 2.6% Unsecured, 0.7% Other, 0.2% Total Outstanding at 12/31/20 $655M Quality Consumer Loan Portfolio as of December 31, 2020

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 Jumbo, 41.3% Rental, 0.9% Conforming, 53.8% Construction, 4.0% Total Outstanding at 12/31/20 $624M • 77% of production sold YTD • Predominantly in-market lender • Portfolio mortgages • Underwriting to Fannie Mae guidelines • Full documentation of employment, income and asset verification • 96.6% prime with credit score ≥670 • Strong asset quality through end of 4Q20 • 30-89 days past due • 4Q20 – 0.29% • 3Q20 – 0.32% • NPLs • 4Q20 – 1.36% • 3Q20 – 1.34% Prime Mortgage Loan Portfolio as of December 31, 2020

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 49 for non-GAAP reconciliation) (2) As calculated by S&P Global Market Intelligence. Historical Financials ($M except per share data) 2015 2016 2017 2018 2019 2020 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 Balance Sheet: Total Assets $2,652 $3,141 $3,964 $4,247 $5,247 $5,887 $5,247 $5,351 $5,739 $5,790 $5,887 Gross Loans $1,757 $2,144 $2,838 $3,014 $3,641 $3,881 $3,641 $3,714 $3,994 $4,043 $3,881 Deposits $1,880 $2,471 $2,881 $3,139 $3,931 $4,531 $3,931 $3,882 $4,308 $4,336 $4,531 Tangible Common Equity $197 $255 $325 $362 $478 $517 $478 $454 $476 $495 $517 Profitability: Net Income $20.5 $23.9 $33.1 $53.1 $66.5 $68.5 $18.5 $11.7 $14.6 $20.3 $21.9 Return on Average Assets 0.87% 0.81% 0.97% 1.31% 1.35% 1.22% 1.40% 0.89% 1.05% 1.40% 1.49% Return on Average Equity 9.9% 7.9% 8.7% 11.2% 11.0% 10.3% 11.3% 7.0% 9.1% 12.1% 12.8% Net Interest Margin 3.56% 3.29% 3.75% 3.71% 3.69% 3.44% 3.58% 3.56% 3.47% 3.29% 3.34% Efficiency Ratio (1) 70.0% 71.5% 65.3% 60.7% 59.9% 57.0% 57.3% 58.8% 56.2% 55.6% 57.5% Asset Quality (2) : NPAs & 90+ PD / Assets 0.75% 0.44% 0.44% 0.41% 0.47% 0.49% 0.47% 0.50% 0.53% 0.55% 0.49% NPAs & 90+ PD / Loans + OREO 1.13% 0.65% 0.61% 0.57% 0.68% 0.74% 0.68% 0.72% 0.77% 0.78% 0.74% Reserves / Total Loans 0.83% 0.69% 0.58% 0.59% 0.49% 1.47% 0.49% 1.30% 1.38% 1.39% 1.47% NCOs / Avg. Loans 0.32% 0.08% 0.04% 0.05% 0.06% 0.05% 0.07% 0.04% 0.04% 0.08% 0.02% Bancorp Capital Ratios: TCE Ratio 7.6% 8.3% 8.5% 8.8% 9.4% 9.1% 9.4% 8.8% 8.6% 8.8% 9.1% Leverage Ratio 9.8% 10.4% 9.9% 10.1% 10.5% 10.7% 10.5% 10.1% 10.8% 10.6% 10.7% Tier 1 Capital Ratio 13.2% 13.2% 12.4% 12.8% 13.5% 13.9% 13.5% 12.8% 13.4% 13.2% 13.9% Total Capital Ratio 14.0% 13.9% 12.9% 13.4% 14.0% 14.9% 14.0% 13.7% 14.4% 14.2% 14.9% 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 Source: S&P Global Market Intelligence. Deposit data as of 6/30/20, estimated pro forma for recent or pending transactions per S&P Global Market Intelligence. Leader In Our Core Markets MSA HBNC Rank HBNC Branches HBNC Market Share Deposits in Market ($M) 2020 Median HHI '20-'25 Est. Pop. Change '20-'25 Est. HHI Change Michigan City-La Porte, IN 1 8 57.7% $1,150 $53,255 0.1% 6.8% Indianapolis-Carmel-Anderson, IN 16 9 1.0% 680 65,306 3.8% 11.2% Chicago-Naperville-Elgin, IL-IN-WI 67 10 0.1% 548 74,285 0.1% 11.5% Lafayette-West Lafayette, IN 4 7 8.4% 322 59,404 3.9% 10.9% Midland, MI 2 1 12.6% 255 69,009 0.0% 16.9% Niles, MI 4 5 9.9% 232 53,488 -0.5% 10.8% Lansing-East Lansing, MI 14 2 1.7% 150 61,675 1.6% 11.5% Logansport, IN 3 2 18.5% 148 50,939 -0.2% 9.9% Auburn, IN 3 3 16.1% 129 58,507 2.3% 9.4% Warsaw, IN 5 4 5.7% 101 65,982 2.0% 11.4% Grand Rapids-Kentwood, MI 21 2 0.4% 99 67,365 3.2% 11.9% Columbus, IN 6 2 6.1% 96 67,372 3.3% 12.8% Kalamazoo-Portage, MI 10 1 2.0% 82 63,546 2.6% 15.4% Fort Wayne, IN 14 4 1.0% 79 58,865 3.0% 10.6% Sturgis, MI 5 1 7.8% 68 55,036 0.4% 11.5% Marion, IN 6 1 7.4% 61 47,353 -1.9% 11.1% Kokomo, IN 7 2 3.4% 46 52,734 0.6% 7.5% Kendallville, IN 5 2 6.6% 44 59,362 1.0% 9.6% South Bend-Mishawaka, IN-MI 13 2 0.7% 35 58,213 1.4% 15.4% Saginaw, MI 13 1 0.7% 18 48,941 -1.8% 9.2% Elkhart-Goshen, IN 14 1 0.3% 12 65,928 2.5% 16.4% Total Franchise 73 $4,433 $60,882 1.3% 10.4%

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 13 • Adjusted net income and adjusted diluted EPS excludes one-time merger expenses, (gain)/loss on sale of securities and death benefit on bank owned life insurance, net of tax. (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 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 ROAA and Adjusted pre-tax, pre-provision ROAA excludes one-time merger expenses, (gain)/loss on sale of securities and death benefit on bank owned life insurance, net of tax. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 14 • 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 16 • Average cost of average total deposits includes average balances of non-interest bearing deposits. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 19 • Adjusted efficiency ratio excludes one-time merger expenses, (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 38-49 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 ® 38 Footnote Index December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 Pre-tax income 23,860$ 24,638$ 16,632$ 13,239$ 22,463$ Provision for credit losses 3,042 2,052 7,057 8,600 340 Pre-tax, pre-provision net income 26,902$ 26,690$ 23,689$ 21,839$ 22,803$ Pre-tax, pre-provision net income 26,902$ 26,690$ 23,689$ 21,839$ 22,803$ Merger expenses - - - - - (Gain)/loss on sale of investment securities (2,622) (1,088) (248) (339) (10) Death benefit on bank owned life insurance - (31) - (233) - Prepayment penalties on borrowings 3,804 - - - - Adjusted pre-tax, pre-provision net income 28,084$ 25,571$ 23,441$ 21,267$ 22,793$ Average Assets 5,864,086$ 5,768,691$ 5,620,695$ 5,257,332$ 5,250,574$ Unadjusted pre-tax, pre-provision ROAA 1.83% 1.84% 1.70% 1.67% 1.72% Adjusted pre-tax, pre-provision ROAA 1.91% 1.76% 1.68% 1.63% 1.72% Three Months Ended Non-GAAP Reconciliation of Pre-Tax, Pre-Provision 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 ® 39 Footnote Index December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 Net income as reported 21,893$ 20,312$ 14,639$ 11,655$ 18,543$ Merger expenses - - - - - Tax effect - - - - - Net income excluding merger expenses 21,893 20,312 14,639 11,655 18,543 (Gain)/loss on sale of investment securities (2,622) (1,088) (248) (339) (10) Tax effect 551 228 52 71 2 Net income excluding (gain)/loss on sale of investment securities 19,822 19,452 14,443 11,387 18,535 Death benefit on bank owned life insurance ("BOLI") - (31) - (233) - Net income excluding death benefit on BOLI 19,822 19,421 14,443 11,154 18,535 Prepayment penalties on borrowings 3,804 - - - - Tax effect (799) - - - - Net income excluding prepayment penalties on borrowings 22,827 19,421 14,443 11,154 18,535 Adjusted net income 22,827$ 19,421$ 14,443$ 11,154$ 18,535$ Non-GAAP Reconciliation of 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 ® 40 Footnote Index December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 Diluted earnings per share ("EPS") as reported 0.50$ 0.46$ 0.33$ 0.26$ 0.41$ Merger expenses - - - - - Tax effect - - - - - Diluted EPS excluding merger expenses 0.50 0.46 0.33 0.26 0.41 (Gain)/loss on sale of investment securities (0.06) (0.02) (0.01) (0.01) - Tax effect 0.01 0.01 - - - Diluted EPS excluding (gain)/loss on investment securities 0.45 0.45 0.32 0.25 0.41 Death benefit on BOLI - - - (0.01) - Diluted EPS excluding death benefit on BOLI 0.45 0.45 0.32 0.24 0.41 Prepayment penalties on borrowings 0.09 - - - - Tax effect (0.02) - - - - Diluted EPS excluding prepayment penalties on borrowings 0.52 0.45 0.32 0.24 0.41 Adjusted Diluted EPS 0.52$ 0.45$ 0.32$ 0.24$ 0.41$ 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 December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 Average assets 5,864,086$ 5,768,691$ 5,620,695$ 5,257,332$ 5,250,574$ Return on average assets ("ROAA") as reported 1.49% 1.40% 1.05% 0.89% 1.40% Merger expenses - - - - - Tax effect - - - - - ROAA excluding merger expenses 1.49 1.40 1.05 0.89 1.40 (Gain)/loss on sale of investment securities (0.18) (0.08) (0.02) (0.03) - Tax effect 0.04 0.02 - 0.01 - ROAA excluding (gain)/loss on sale of investment securities 1.35 1.34 1.03 0.87 1.40 Death benefit on bank owned life insurance ("BOLI") - - - (0.02) - ROAA excluding death benefit on BOLI 1.35 1.34 1.03 0.85 1.40 Prepayment penalty on borrowings 0.26 - - - - Tax effect (0.05) - - - - ROAA excluding prepayment penalties on borrowings 1.56 1.34 1.03 0.85 1.40 Adjusted ROAA 1.56% 1.34% 1.03% 0.85% 1.40% Non-GAAP Reconciliation of Return on Average Assets (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 ® 42 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% 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 ® 43 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$ 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 ® 44 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 ® 45 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") 0.46% 0.53% 0.60% 0.95% 1.04% 1.10% 1.13% 1.19% Three Months EndedThree 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 ® 46 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$ Interest expense from 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% Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (Dollars in Thousands, Unaudited) Three Months Ended 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, 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$ Interest expense from 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 ® 48 Footnote Index December 31, September 30, 2020 2020 Total deposit interest expense as reported 2,718$ 3,616$ Average interest bearing deposits 3,450,824 3,334,436 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 0.31% 0.43% Average interest bearing deposits 3,450,824 3,334,436 Average non-interest bearing deposits 1,037,232 996,427 Average total deposits 4,488,056$ 4,330,863$ Annualzied deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 0.24% 0.33% 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 ® 49 Footnote Index December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 Non-GAAP Calculation of Efficiency Ratio Non-interest expense as reported 36,453$ 33,407$ 30,432$ 31,149$ 30,650$ Net interest income as reported 43,622 43,397 42,996 40,925 41,519 Non-interest income as reported 19,733 16,700 11,125 12,063 11,934 Non-interest expense/ (Net interest income + Non-interest income) ("Efficiency Ratio") 57.54% 55.59% 56.23% 58.79% 57.34% Non-GAAP Reconciliation of Adjusted Efficiency Ratio Non-interest expense as reported 36,453$ 33,407$ 30,432$ 31,149$ 30,650$ Merger expenses - - - - - Non-interest expense excluding merger expenses 36,453 33,407 30,432 31,149 30,650 Net interest income as reported 43,622 43,397 42,996 40,925 41,519 Prepayment penalties on borrowings 3,804 - - - - Net interest income excluding prepayment penalties on borrowings 47,426 43,397 42,996 40,925 41,519 Non-interest income as reported 19,733 16,700 11,125 12,063 11,934 (Gain)/loss on sale of investment securities (2,622) (1,088) (248) (339) (10) Death benefit on bank owned life insurance ("BOLI") - (31) - (233) - Non-interest income excluding (gain)/loss on sale of investment securities and death benefit on BOLI 17,111$ 15,581$ 10,877$ 11,491$ 11,924$ Adjusted efficiency ratio 56.48% 56.64% 56.49% 59.43% 57.35% Non-GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio (Dollars in Thousands, Unaudited) Three Months Ended


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 January 27, 2021	Attached
	99.2	Horizon Bancorp, Inc. Investor Presentation dated January 27, 2021	Attached
	104	Cover Page Interactive Data File (Embedded within the Inline XBRL document)	Within the Inline XBRL document


Date:	January 27, 2021	HORIZON BANCORP, INC.


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