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8-K

Horizon Bancorp Inc /In/ (HBNC)

8-K 2022-07-27 For: 2022-07-27
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): July 27, 2022

HORIZON BANCORP, INC.

(Exact name of registrant as specified in its charter)

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

515 Franklin Street

Michigan City, IN 46360

(Address of principal executive offices, including zip code)

(219) 879-0211

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

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

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition

On July 27, 2022, Horizon Bancorp, Inc. (the “Company”) issued a press release announcing earnings and other financial results for the three month period ended June 30, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference.

Item 7.01 Regulation FD Disclosure

Investor Presentation

The Company has prepared presentation materials (the “Investor Presentation”) that management intends to use during its previously announced Earnings Conference Call on Thursday, July 28, 2022 at 7:30 a.m. Central Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Investor Presentation also contains information relating to the Company’s COVID–19 response and planning efforts to date. The Company may use the Investor Presentation, possibly with modifications, in presentations to current and potential investors, analysts, lenders, business partners, acquisition candidates, customers, employees and others with an interest in the Company and its business.

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

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

Item 9.01 Financial Statements and Exhibits

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 27, 2022 HORIZON BANCORP, INC.
By: /s/ Mark E. Secor
Mark E. Secor,
Executive Vice President & Chief Financial Officer

3

Document

horizonbancorpinc876_sm-10.jpg

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

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Michigan City, Indiana, July 27, 2022 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) — Horizon Bancorp, Inc. (“Horizon” or the “Company”) announced its unaudited financial results for the three– and six–months ending June 30, 2022.

“We are extremely pleased with our performance during the second quarter of fiscal 2022. Record earnings and profitability can be attributed to strong loan growth and the higher interest rate environment which led to a meaningful increase in pre–tax, pre–provision net income,” Chairman and CEO Craig M. Dwight said. “This level of organic growth would not have been possible without the hard work and dedication from our team to meet the evolving needs of our customers. We remain committed to driving organic growth through our investments in commercial and consumer loan production, finding strategic opportunities to deploy capital, and leveraging our asset sensitive balance sheet and strong credit quality to achieve long–term shareholder value.”

Second Quarter 2022 Highlights

•Net income grew to a record $24.9 million, up 5.5% from the linked quarter and 12.1% from the prior year period. Diluted earnings per share (“EPS”) of $0.57 was up from $0.54 for the first quarter of 2022 and $0.50 for the second quarter of 2021.

•Pre–tax, pre–provision net income grew to $29.1 million, up 13.1% from the linked quarter and 18.9% from the prior year period. This non–GAAP financial measure is utilized by banks to provide a greater understanding of pre–tax profitability before giving effect to credit loss expense. (See the “Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Net Income” table below.) Horizon recorded a provision expense of $240,000 in the quarter compared to a provision release of $1.4 million in the linked quarter, and a provision release of $1.5 million in the prior year period.

•Reported net interest margin (“NIM”) was 3.19% and adjusted NIM was 3.12%, with reported NIM increasing by 20 basis points and adjusted NIM increasing by 19 basis points from the first quarter of 2022. (See the “Non-GAAP Reconciliation of Net Interest Margin” table below for the definition of this non–GAAP calculation of adjusted NIM.)

•Total loans, excluding Federal Paycheck Protection Program (“PPP”) loans and sold commercial participation loans, grew by 6.2%, or 25.1% annualized, during the second quarter to $3.89 billion at period end compared to $3.66 billion on March 31, 2022.

•Commercial loans, excluding PPP loans and sold commercial participation loans, grew by 4.9%, or 19.7% annualized, during the second quarter to a record $2.31 billion from $2.20 billion on March 31, 2022.

•Consumer loans grew by 12.6%, or 50.5% annualized, during the second quarter to a record $848.7 million at period end.

•Non–interest expense was $36.4 million in the quarter, or 1.95% of average assets on an annualized basis, compared to $36.6 million, or 2.03%, in the first quarter of 2022 and $33.4 million, or 2.18%, in the second quarter of 2021. Non–interest expense was $73.0 million, or 1.99% of average assets on an annualized basis for the six

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

months ended June 30, 2022 compared to $65.6 million, or 2.19% of average assets on an annualized basis for the six months ended June 30, 2021.

•The efficiency ratio for the period was 55.57% compared to 58.74% for the first quarter of 2022 and 57.73% for the second quarter of 2021. The adjusted efficiency ratio was 56.13% compared to 58.74% for the first quarter of 2022 and 57.45% for the second quarter of 2021. (See the “Non-GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio” table below.)

•As part of the Company’s annual branch performance review of Horizon Bank’s (the “Bank”) retail network, Horizon’s Board of Directors approved the permanent closure of seven branch locations in the second half of 2022. A one–time charge of approximately $380,000 was recorded during the second quarter to record these branch locations’ fixed assets at fair value.

•Asset quality remains favorable as evidenced by non–performing loans at 0.51% of total loans at period end and net charge–offs to average loans represented 0.01% for the second quarter of 2022.

•The Company was more asset sensitive as of June 30, 2022 compared to the previous quarter end, as deposit BETA’s have lagged rising rates and an increase in adjustable rate assets. Current estimates for parallel rate shocks to the balance sheet, at a 100 basis point shock and 200 basis point shock, increase net interest income by approximately $7.0 million and $12.8 million, respectively.

•Since March 31, 2022, deposit betas have significantly lagged our modeled betas at a 3% beta on total deposits over the last three months compared to our model using a beta of 35% for total deposits.

•During the second quarter of 2022, the continued steepening of the yield curve resulted in unrealized losses on available for sale investments of $122.0 million compared to unrealized losses of $73.6 million at March 31, 2022. The impact to the tangible capital ratio was a decrease of 46 basis points from 6.94% at March 31, 2022 to 6.48% at June 30, 2022, a 6.63% decrease.

•The Bank's capital is still robust with leverage and risk based capital ratios of 9.17% and 14.81%, respectively.

Summary

For the Three Months Ended
June 30, March 31, June 30,
Net Interest Income and Net Interest Margin 2022 2022 2021
Net interest income $ 53,008 $ 48,171 $ 42,632
Net interest margin 3.19 % 2.99 % 3.14 %
Adjusted net interest margin 3.12 % 2.93 % 3.13 %

Mr. Dwight continued, “Net interest margin continues to expand, illustrating the Company’s highly asset sensitive balance sheet position. Both the expected additional rate increases, and loan volume will continue to positively impact net interest income and NIM through 2022. Pressure on deposit pricing so far has been limited and we believe will remain in line with or better than our competitors. This expectation reflects our confidence in the strength of our commercial and retail relationships.”

For the Three Months Ended
June 30, March 31, June 30,
Asset Yields and Funding Costs 2022 2022 2021
Interest earning assets 3.46 % 3.22 % 3.48 %
Interest bearing liabilities 0.34 % 0.30 % 0.45 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

For the Three Months Ended
Non–interest Income and June 30, March 31, June 30,
Mortgage Banking Income 2022 2022 2021
Total non–interest income $ 12,434 $ 14,155 $ 15,207
Gain on sale of mortgage loans 2,501 2,027 5,612
Mortgage servicing income net of impairment 319 3,489 1,503 For the Three Months Ended
--- --- --- --- --- --- --- --- --- ---
June 30, March 31, June 30,
Non–interest Expense 2022 2022 2021
Total non–interest expense $ 36,368 $ 36,610 $ 33,388
Annualized non–interest expense to average assets 1.95 % 2.03 % 2.18 % For the Three Months Ended
--- --- --- --- --- --- ---
June 30, March 31, June 30,
Credit Quality 2022 2022 2021
Allowance for credit losses to total loans 1.33 % 1.41 % 1.58 %
Non–performing loans to total loans 0.51 % 0.54 % 0.63 %
Percent of net charge–offs to average loans outstanding for the period 0.01 % 0.00 % 0.00 % Allowance for June 30, Net Reserve December 31,
--- --- --- --- --- --- --- --- ---
Credit Losses 2022 2Q22 1Q22 2021
Commercial $ 34,802 $ (2,987) $ (2,986) $ 40,775
Retail Mortgage 4,422 71 495 3,856
Warehouse 1,067 12 (4) 1,059
Consumer 12,059 2,746 717 8,596
Allowance for Credit Losses (“ACL”) $ 52,350 $ (158) $ (1,778) $ 54,286
ACL / Total Loans 1.33 % 1.51 %
Acquired Loan Discount (“ALD”) $ 7,206 $ (1,122) $ (769) $ 9,097

“Our results this quarter were positively impacted by the significant progress towards achieving our goal of an annualized non–interest expense to average assets ratio of less than 2.00%. For the period ended June 30, 2022, our annualized non–interest expense to average assets ratio was 1.95%,” Mr. Dwight continued. “We remain disciplined with a focus on expense management which is critical given the economic uncertainty and rise in inflation, however; we are confident in our ability to continue to reduce our annualized target to less than 2.00%.”

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Income Statement Highlights

Net income for the second quarter of 2022 was $24.9 million, or $0.57 diluted earnings per share, compared to $23.6 million, or $0.54, for the linked quarter and $22.2 million, or $0.50, for the prior year period. This represents the highest quarterly net income in the Company’s history.

Adjusted net income for the second quarter of 2022 was $24.2 million, or $0.56 diluted earnings per share, compared to $23.6 million, or $0.54, for the linked quarter and $22.2 million, or $0.50, for the prior year period. Adjusted net income, which is not calculated according to generally accepted accounting principles (“GAAP”), is a measure that Horizon uses to provide a greater understanding of operating profitability. (See the “Non–GAAP Reconciliation of Net Income” table below.)

The increase in net income for the second quarter of 2022 when compared to the first quarter of 2022 reflects an increase in net interest income of $4.8 million and a decrease in non–interest expense of $242,000. These items were offset by an increase in credit loss expense of $1.6 million and a decrease in non–interest income of $1.7 million and an increase in income tax expense of $436,000 for the second quarter of 2022 when compared to the first quarter of 2022.

Interest income includes the recognition of PPP loan interest and net loan processing fees totaling $198,000 in the second quarter of 2022, compared to $457,000 in the linked quarter. On June 30, 2022, the Company had $32,000 in net deferred PPP loan processing fees outstanding and $2.3 million in PPP loans outstanding. PPP loan net deferred fees and loans outstanding at March 31, 2021 were $141,000 and $6.7 million, respectively.

Second quarter 2022 income from the gain on sale of mortgage loans totaled $2.5 million, up from $2.0 million in the linked quarter and down from $5.6 million in the prior year period.

Certain revenue streams that generated higher income in the quarter ended June 30, 2021, were replaced in the most recent quarter with earning assets that had higher income margins and the increasing margin generated higher net interest income. For the quarter ending June 30, 2021, income from PPP lending, gain on sale of mortgage loans and mortgage servicing income net of impairment totaled $9.8 million. For the quarter ending June 30, 2022, the income from those same revenue streams totaled $3.0 million. The ability to replace this income and increase overall net income in the second quarter was attributed to the strategies management implemented to focus on higher earning assets.

Non–interest expense of $36.4 million in the second quarter of 2022 reflected a $371,000 decrease in net occupancy expenses and a $288,000 decrease in other expenses, offset by an increase in salaries and employee benefit expense of $222,000 and an increase in other losses of $194,000 from the linked quarter.

The increase in net income for the second quarter of 2022 when compared to the same prior year period reflects an increase in net interest income of $10.4 million, offset by an increase in credit loss expense of $1.7 million, a decrease in non–interest income of $2.8 million, an increase in non–interest expense of $3.0 million and an increase in income tax expense of $205,000.

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Non–GAAP Reconciliation of Net Income
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Net income as reported $ 24,859 $ 23,563 $ 21,425 $ 23,071 $ 22,173 $ 48,422 $ 42,595
Acquisition expenses — — 884 799 242 — 242
Tax effect — — (184) (166) (51) — (51)
Net income excluding acquisition expenses 24,859 23,563 22,125 23,704 22,364 48,422 42,786
Credit loss expense acquired loans — — — 2,034 — — —
Tax effect — — — (427) — — —
Net income excluding credit loss expense acquired loans 24,859 23,563 22,125 25,311 22,364 48,422 42,786
Gain on sale of ESOP trustee accounts — — — (2,329) — — —
Tax effect — — — 489 — — —
Net income excluding gain on sale of ESOP trustee accounts 24,859 23,563 22,125 23,471 22,364 48,422 42,786
DOL ESOP settlement expenses — — 1,900 — — — —
Tax effect — — (315) — — — —
Net income excluding DOL ESOP settlement expenses 24,859 23,563 23,710 23,471 22,364 48,422 42,786
(Gain) / loss on sale of investment securities — — — — — — (914)
Tax effect — — — — — — 192
Net income excluding (gain) / loss on sale of investment securities 24,859 23,563 23,710 23,471 22,364 48,422 42,064
Death benefit on bank owned life insurance (“BOLI”) (644) — — (517) (266) (644) (266)
Net income excluding death benefit on BOLI 24,215 23,563 23,710 22,954 22,098 47,778 41,798
Prepayment penalties on borrowings — — — — 125 — 125
Tax effect — — — — (26) — (26)
Net income excluding prepayment penalties on borrowings 24,215 23,563 23,710 22,954 22,197 47,778 41,897
Adjusted net income $ 24,215 $ 23,563 $ 23,710 $ 22,954 $ 22,197 $ 47,778 $ 41,897

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Non–GAAP Reconciliation of Diluted Earnings per Share
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Diluted earnings per share (“EPS”) as reported $ 0.57 $ 0.54 $ 0.49 $ 0.52 $ 0.50 $ 1.11 $ 0.97
Acquisition expenses — — 0.02 0.02 0.01 — 0.01
Tax effect — — — — — — —
Diluted EPS excluding acquisition expenses 0.57 0.54 0.51 0.54 0.51 1.11 0.98
Credit loss expense acquired loans — — — 0.05 — — —
Tax effect — — — (0.01) — — —
Diluted EPS excluding credit loss expense acquired loans 0.57 0.54 0.51 0.58 0.51 1.11 0.98
Gain on sale of ESOP trustee accounts — — — (0.05) — — —
Tax effect — — — 0.01 — — —
Diluted EPS excluding gain on sale of ESOP trustee accounts 0.57 0.54 0.51 0.54 0.51 1.11 0.98
DOL ESOP settlement expenses — — 0.04 — — — —
Tax effect — — (0.01) — — — —
Diluted EPS excluding DOL ESOP settlement expenses 0.57 0.54 0.54 0.54 0.51 1.11 0.98
(Gain) / loss on sale of investment securities — — — — — — (0.02)
Tax effect — — — — — — —
Diluted EPS excluding (gain) / loss on sale of investment securities 0.57 0.54 0.54 0.54 0.51 1.11 0.96
Death benefit on bank owned life insurance (“BOLI”) (0.01) — — (0.02) (0.01) (0.01) (0.01)
Diluted EPS excluding death benefit on BOLI 0.56 0.54 0.54 0.52 0.50 1.10 0.95
Prepayment penalties on borrowings — — — — — — —
Tax effect — — — — — — —
Diluted EPS excluding prepayment penalties on borrowings 0.56 0.54 0.54 0.52 0.50 1.10 0.95
Adjusted diluted EPS $ 0.56 $ 0.54 $ 0.54 $ 0.52 $ 0.50 $ 1.10 $ 0.95

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Net Income
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Pre–tax income $ 28,834 $ 27,102 $ 25,505 $ 27,127 $ 25,943 $ 55,936 $ 49,815
Credit loss expense 240 (1,386) (2,071) 1,112 (1,492) (1,146) (1,125)
Pre–tax, pre–provision net income $ 29,074 $ 25,716 $ 23,434 $ 28,239 $ 24,451 $ 54,790 $ 48,690
Pre–tax, pre–provision net income $ 29,074 $ 25,716 $ 23,434 $ 28,239 $ 24,451 $ 54,790 $ 48,690
Acquisition expenses — — 884 799 242 — 242
Gain on sale of ESOP trustee accounts — — — (2,329) — — —
DOL ESOP settlement expenses — — 1,900 — — — —
(Gain) / loss on sale of investment securities — — — — — — (914)
Death benefit on BOLI (644) — — (517) (266) (644) (266)
Prepayment penalties on borrowings — — — — 125 — 125
Adjusted pre–tax, pre–provision net income $ 28,430 $ 25,716 $ 26,218 $ 26,192 $ 24,552 $ 54,146 $ 47,752

Pre–tax, pre–provision net income grew to $29.1 million, up 13.1% from the linked quarter and 18.9% from the prior year period. This non–GAAP financial measure is utilized by banks to provide a greater understanding of pre–tax profitability before giving effect to credit loss expense. Horizon recorded a provision expense of $240,000 in the quarter and provision release of $1.4 million in the linked quarter, and a provision release of $1.5 million in the prior year period.

Non–GAAP Reconciliation of Net Interest Margin
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Net interest income as reported $ 53,008 $ 48,171 $ 49,976 $ 46,544 $ 42,632 $ 101,179 $ 85,170
Average interest earning assets 6,927,310 6,800,549 6,938,258 6,033,088 5,659,384 6,864,280 5,550,116
Net interest income as a percentage of average interest earning assets (“Net Interest Margin”) 3.19 % 2.99 % 2.97 % 3.17 % 3.14 % 3.03 % 3.21 %
Net interest income as reported $ 53,008 $ 48,171 $ 49,976 $ 46,544 $ 42,632 $ 101,179 $ 85,170
Acquisition–related purchase accounting adjustments (“PAUs”) (1,223) (916) (1,819) (875) (230) (2,139) (1,809)
Prepayment penalties on borrowings — — — — 125 — 125
Adjusted net interest income $ 51,785 $ 47,255 $ 48,157 $ 45,669 $ 42,527 $ 99,040 $ 83,361
Adjusted net interest margin 3.12 % 2.93 % 2.86 % 3.12 % 3.13 % 2.97 % 3.15 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Horizon’s net interest margin increased to 3.19% for the second quarter of 2022 compared to 2.99% for the first quarter of 2022. The increase in net interest margin reflects an increase in the yield on interest earning assets of 24 basis points offset by an increase in the cost of interest bearing liabilities of four basis points. Interest income from acquisition–related purchase accounting adjustments was $307,000 higher during the second quarter of 2022 when compared to the first quarter of 2022.

Horizon’s net interest margin increased to 3.19% for the second quarter of 2022 compared to 3.14% for the second quarter of 2021. The increase in net interest margin reflects a decrease in the cost of interest bearing liabilities of 11 basis points offset by a decrease in the yield on interest earning assets of two basis points.

Net interest margin, excluding acquisition–related purchase accounting adjustments (“adjusted net interest margin”), was 3.12% for the second quarter of 2021, compared to 2.93% for the linked quarter and 3.13% for the second quarter of 2021. Interest income from acquisition–related purchase accounting adjustments was $1.2 million, $916,000 and $230,000 for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

Lending Activity

Total loan balances were $3.94 billion, or $3.89 billion excluding PPP loans and sold commercial participation loans, on June 30, 2022. Total loans were $3.72 billion, or $3.66 billion excluding PPP loans and sold commercial participation loans, on March 31, 2022. During the three months ended June 30, 2022, commercial loans, excluding PPP loans and sold commercial participation loans, increased $108.0 million, consumer loans increased $94.8 million, mortgage warehouse loans increased $11.4 million, residential mortgage loans increased $15.2 million and sold commercial participation loans increased $1.0 million, offset by decreases in PPP loans of $4.4 million and loans held for sale of $838,000. PPP loan income was $198,000, $457,000 and $2.7 million for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

Loan Growth by Type, Excluding Acquired Loans
(Dollars in Thousands, Unaudited)
June 30, March 31, Amount QTD Annualized
2022 2022 Change % Change % Change
Commercial, excluding PPP loans and <br>sold commercial participation loans $ 2,310,605 $ 2,202,568 $ 108,037 4.9% 19.9%
PPP loans 2,343 6,705 (4,362) (65.1)% (263.8)%
Sold commercial participation loans 51,043 50,054 989 2.0% 8.0%
Residential mortgage 608,582 593,372 15,210 2.6% 10.4%
Consumer 848,749 753,900 94,849 12.6% 51.0%
Subtotal 3,821,322 3,606,599 214,723 6.0% 24.1%
Loans held for sale 2,943 3,781 (838) (22.2)% (89.9)%
Mortgage warehouse 116,488 105,118 11,370 10.8% 43.9%
Total loans $ 3,940,753 $ 3,715,498 $ 225,255 6.1% 24.6%
Total loans, excluding PPP loans and<br>sold commercial participation loans $ 3,887,367 $ 3,658,739 $ 228,628 6.2% 25.3%

Residential mortgage lending activity for the three months ended June 30, 2022 generated $2.5 million in income from the gain on sale of mortgage loans, increasing $474,000 from the first quarter of 2022 and decreasing $3.1 million from the second quarter of 2021. Total mortgage origination volume for the second quarter of 2022, including loans placed into the portfolio, totaled $115.1 million, representing a decrease of 3.2% from first quarter 2022 levels, and a decrease of 33.5% from the second quarter of 2021. As a percentage of total mortgage loan originations, 17% of the volume was from refinancings and 83% was from loans for new home purchases during the second quarter of 2022. Total origination volume of mortgage loans sold to the secondary market totaled $67.3 million, representing a decrease of 17.2% from the first quarter of 2022 and a decrease of 40.5% from the second quarter of 2021.

Gain on sale of mortgage loans and mortgage warehousing income was 5.6% of total revenue for the three months ended June 30, 2022, compared to 4.7% for the linked quarter and 12.3% for the three months ended June 30, 2021.

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Deposit Activity

Total deposit balances were $5.85 billion on June 30, 2022 compared to $5.85 billion on March 31, 2022, a decrease of $5.9 million.

Deposit Growth by Type, Excluding Acquired Deposits
(Dollars in Thousands, Unaudited)
June 30, March 31, Amount QTD Annualized
2022 2022 Change % Change % Change
Non–interest bearing $ 1,328,213 $ 1,325,570 $ 2,643 0.2% 0.8%
Interest bearing 3,760,890 3,782,644 (21,754) (0.6)% (2.3)%
Time deposits 756,482 743,283 13,199 1.8% 7.2%
Total deposits $ 5,845,585 $ 5,851,497 $ (5,912) (0.1)% (0.4)%

Expense Management

Three Months Ended
June 30, March 31,
2022 2022
Non–interest Expense Actual Actual Amount<br>Change Percent<br>Change
Salaries and employee benefits $ 19,957 $ 19,735 $ 222 1.1%
Net occupancy expenses 3,190 3,561 (371) (10.4)%
Data processing 2,607 2,537 70 2.8%
Professional fees 283 314 (31) (9.9)%
Outside services and consultants 2,485 2,525 (40) (1.6)%
Loan expense 2,497 2,545 (48) (1.9)%
FDIC insurance expense 775 725 50 6.9%
Other losses 362 168 194 115.5%
Other expense 4,212 4,500 (288) (6.4)%
Total non–interest expense $ 36,368 $ 36,610 $ (242) (0.7)%
Annualized non–interest expense to average assets 1.95 % 2.03 %

Total non–interest expense was $242,000 lower in the second quarter of 2022 when compared to the first quarter of 2022. The decrease was primarily due to a decrease in net occupancy expenses of $371,000 and a decrease in other expense $288,000, offset by an increase in salaries and employee benefits expense of $222,000.

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Three Months Ended
June 30, June 30,
2022 2021 Adjusted
Non–interest Expense Actual Acquisition<br>Expenses Adjusted Actual Acquisition<br>Expenses Adjusted Amount<br>Change Percent<br>Change
Salaries and employee benefits $ 19,957 $ — $ 19,957 $ 17,730 $ — $ 17,730 $ 2,227 12.6%
Net occupancy expenses 3,190 — 3,190 3,084 — 3,084 106 3.4%
Data processing 2,607 — 2,607 2,388 — 2,388 219 9.2%
Professional fees 283 — 283 588 (51) 537 (254) (47.3)%
Outside services and consultants 2,485 — 2,485 2,220 (187) 2,033 452 22.2%
Loan expense 2,497 — 2,497 3,107 — 3,107 (610) (19.6)%
FDIC insurance expense 775 — 775 500 — 500 275 55.0%
Other losses 362 — 362 6 — 6 356 5933.3%
Other expense 4,212 — 4,212 3,765 (4) 3,761 451 12.0%
Total non–interest expense $ 36,368 $ — $ 36,368 $ 33,388 $ (242) $ 33,146 $ 3,222 9.7%
Annualized non–interest expense to average assets 1.95 % 1.95 % 2.18 % 2.16 %

Total non–interest expense was $3.0 million higher in the second quarter of 2022 when compared to the second quarter of 2021. The increases in expenses was primarily due to an increase in salaries and employee benefits of $2.2 million due to additional employees hired as a result of the 2021 branch acquisition, an increase in other expense of $447,000, an increase in other losses of $356,000, an increase in FDIC insurance expense of $275,000 and an increase in outside services and consultants expense of $265,000, offset by a decrease of $610,000 in loan expense and a decrease of $305,000 in professional fees.

Annualized non–interest expense as a percent of average assets was 1.95%, 2.03% and 2.18% for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively. Annualized non–interest expense, excluding acquisition expenses, as a percent of average assets was 1.95%, 2.03% and 2.16% for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively. (See the “Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio” table below for these non–GAAP calculations.)

Six Months Ended
June 30, June 30,
2022 2021 Adjusted
Non–interest Expense Actual Acquisition<br>Expenses Adjusted Actual Acquisition<br>Expenses Adjusted Amount<br>Change Percent<br>Change
Salaries and employee benefits $ 39,692 $ — $ 39,692 $ 34,601 $ — $ 34,601 $ 5,091 14.7%
Net occupancy expenses 6,751 — 6,751 6,402 — 6,402 349 5.5%
Data processing 5,144 — 5,144 4,764 — 4,764 380 8.0%
Professional fees 597 — 597 1,132 (51) 1,081 (484) (44.8)%
Outside services and consultants 5,010 — 5,010 3,922 (187) 3,735 1,275 34.1%
Loan expense 5,042 — 5,042 5,929 — 5,929 (887) (15.0)%
FDIC insurance expense 1,500 — 1,500 1,300 — 1,300 200 15.4%
Other losses 530 — 530 289 — 289 241 83.4%
Other expense 8,712 — 8,712 7,221 (4) 7,217 1,495 20.7%
Total non–interest expense $ 72,978 $ — $ 72,978 $ 65,560 $ (242) $ 65,318 $ 7,660 11.7%
Annualized non–interest expense to average assets 1.99 % 1.99 % 2.19 % 2.18 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Total non–interest expense was $7.4 million higher in the first six months of 2022 when compared to the first six months of 2021. The increases in expenses was primarily due to an increase in salaries and employee benefits of $5.1 million primarily due to additional employees hired as a result of the 2021 branch acquisition, an increase in other expense of $1.5 million, an increase in outside services and consultants expense of $1.1 million, offset by a decrease of $887,000 in loan expense and a decrease of $535,000 in professional fees.

Annualized non–interest expense as a percent of average assets was 1.99% for the first six months of 2022 compared to 2.19% for the first six months of 2021. Annualized non–interest expense, excluding acquisition expenses, as a percent of average assets was 1.99% and 2.18% for the six months ended June 30, 2022 and June 30, 2021, respectively. (See the “Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio” table below for these non–GAAP calculations.)

Income tax expense totaled $4.0 million for the second quarter of 2022, an increase of $436,000 when compared to the first quarter of 2022 and an increase of $205,000 when compared to the second quarter of 2021.

Income tax expense totaled $7.5 million for the six months ended June 30, 2022, an increase of $294,000 when compared to the six months ended June 30, 2021.

Capital

The capital resources of the Company and the Bank exceeded regulatory capital ratios for “well capitalized” banks at June 30, 2022. Stockholders’ equity totaled $657.9 million at June 30, 2022 and the ratio of average stockholders’ equity to average assets was 9.43% for the six months ended June 30, 2022.

Tangible book value per common share (“TBVPS”) declined $0.43 in the first quarter of 2022 to $11.11 at period end, as unrealized net losses on securities available for sale (“AFS”) of $2.37 per common share reduced other comprehensive income (“OCI”) by $103.4 million in the first six months of this year. Fluctuations in the fair market value of AFS are widely expected to be recorded by banks in the first six months of 2022.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and the Bank as of June 30, 2022.

Actual Required for Capital Adequacy Purposes Required for Capital Adequacy Purposes with Capital Buffer Well Capitalized <br>Under Prompt Corrective Action Provisions
Amount Ratio Amount Ratio Amount Ratio Amount Ratio
Total capital (to risk–weighted assets)
Consolidated $ 749,948 15.83 % $ 379,022 8.00 % $ 497,467 10.50 % N/A N/A
Bank 701,422 14.81 % 378,939 8.00 % 497,358 10.50 % $ 473,674 10.00 %
Tier 1 capital (to risk–weighted assets)
Consolidated 699,552 14.77 % 284,267 6.00 % 402,711 8.50 % N/A N/A
Bank 651,026 13.74 % 284,204 6.00 % 402,623 8.50 % 378,939 8.00 %
Common equity tier 1 capital (to risk–weighted assets)
Consolidated 583,199 12.31 % 213,200 4.50 % 331,645 7.00 % N/A N/A
Bank 651,026 13.74 % 213,153 4.50 % 331,572 7.00 % 307,888 6.50 %
Tier 1 capital (to average assets)
Consolidated 699,552 9.83 % 284,722 4.00 % 284,722 4.00 % N/A N/A
Bank 651,026 9.17 % 284,117 4.00 % 284,117 4.00 % 355,146 5.00 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

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 June 30, 2022, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $917.6 million in unused credit lines with various money center banks, including the FHLB and the Federal Reserve Discount Window. The Bank had approximately $2.2 billion of unpledged investment securities at June 30, 2022.

Use of Non–GAAP Financial Measures

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

Non–GAAP Reconciliation of Tangible Stockholders’ Equity and Tangible Book Value per Share
(Dollars in Thousands, Unaudited)
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Total stockholders’ equity $ 657,865 $ 677,450 $ 723,209 $ 708,542 $ 710,374
Less: Intangible assets 173,662 174,588 175,513 183,938 172,398
Total tangible stockholders’ equity $ 484,203 $ 502,862 $ 547,696 $ 524,604 $ 537,976
Common shares outstanding 43,572,796 43,572,796 43,547,942 43,520,694 43,950,720
Book value per common share $ 15.10 $ 15.55 $ 16.61 $ 16.28 $ 16.16
Tangible book value per common share $ 11.11 $ 11.54 $ 12.58 $ 12.05 $ 12.24

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Non–interest expense as reported $ 36,368 $ 36,610 $ 39,370 $ 34,349 $ 33,388 $ 72,978 $ 65,560
Net interest income as reported 53,008 48,171 49,976 46,544 42,632 101,179 85,170
Non–interest income as reported $ 12,434 $ 14,155 $ 12,828 $ 16,044 $ 15,207 $ 26,589 $ 29,080
Non–interest expense / (Net interest income + Non–interest income)<br>(“Efficiency Ratio”) 55.57 % 58.74 % 62.69 % 54.88 % 57.73 % 57.12 % 57.38 %
Non–interest expense as reported $ 36,368 $ 36,610 $ 39,370 $ 34,349 $ 33,388 $ 72,978 $ 65,560
Acquisition expenses — — (884) (799) (242) — (242)
DOL ESOP settlement expenses — — (1,900) — — — —
Non–interest expense excluding acquisition and DOL ESOP settlement expenses 36,368 36,610 36,586 33,550 33,146 72,978 65,318
Net interest income as reported 53,008 48,171 49,976 46,544 42,632 101,179 85,170
Prepayment penalties on borrowings — — — — 125 — 125
Net interest income excluding prepayment penalties on borrowings 53,008 48,171 49,976 46,544 42,757 101,179 85,295
Non–interest income as reported 12,434 14,155 12,828 16,044 15,207 26,589 29,080
Gain on sale of ESOP trustee accounts — — — (2,329) — — —
(Gain) / loss on sale of investment securities — — — — — — (914)
Death benefit on BOLI (644) — — (517) (266) (644) (266)
Non–interest income excluding (gain) / loss on sale of investment securities and death benefit on BOLI $ 11,790 $ 14,155 $ 12,828 $ 13,198 $ 14,941 $ 25,945 $ 27,900
Adjusted efficiency ratio 56.13 % 58.74 % 58.25 % 56.16 % 57.45 % 57.41 % 57.70 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Non–GAAP Reconciliation of Return on Average Assets
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Average assets $ 7,476,238 $ 7,319,675 $ 7,461,343 $ 6,507,673 $ 6,142,507 $ 7,391,348 $ 6,039,897
Return on average assets (“ROAA”) as reported 1.33 % 1.31 % 1.14 % 1.41 % 1.45 % 1.32 % 1.42 %
Acquisition expenses — — 0.05 0.05 0.02 — 0.01
Tax effect — — (0.01) (0.01) — — —
ROAA excluding acquisition expenses 1.33 1.31 1.18 1.45 1.47 1.32 1.43
Credit loss expense acquired loans — — — 0.12 — — —
Tax effect — — — (0.03) — — —
ROAA excluding credit loss expense on acquired loans 1.33 1.31 1.18 1.54 1.47 1.32 1.43
Gain on sale of ESOP trustee accounts — — — (0.14) — — —
Tax effect — — — 0.03 — — —
ROAA excluding gain on sale of ESOP trustee accounts 1.33 1.31 1.18 1.43 1.47 1.32 1.43
DOL ESOP settlement expenses — — 0.10 — — — —
Tax effect — — (0.02) — — — —
ROAA excluding DOL ESOP settlement expenses 1.33 1.31 1.26 1.43 1.47 1.32 1.43
(Gain) / loss on sale of investment securities — — — — — — (0.03)
Tax effect — — — — — — 0.01
ROAA excluding (gain) / loss on sale of investment securities 1.33 1.31 1.26 1.43 1.47 1.32 1.41
Death benefit on BOLI (0.03) — — (0.03) (0.02) (0.02) (0.01)
ROAA excluding death benefit on BOLI 1.30 1.31 1.26 1.40 1.45 1.30 1.40
Prepayment penalties on borrowings — — — — 0.01 — —
Tax effect — — — — — — —
ROAA excluding prepayment penalties on borrowings 1.30 1.31 1.26 1.40 1.46 1.30 1.40
Adjusted ROAA 1.30 % 1.31 % 1.26 % 1.40 % 1.46 % 1.30 % 1.40 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Non–GAAP Reconciliation of Return on Average Common Equity
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Average common equity $ 677,299 $ 716,341 $ 719,643 $ 724,412 $ 706,652 $ 697,004 $ 702,052
Return on average common equity (“ROACE”) as reported 14.72 % 13.34 % 11.81 % 12.64 % 12.59 % 14.01 % 12.23 %
Acquisition expenses — — 0.49 0.44 0.14 — 0.07
Tax effect — — (0.10) (0.09) (0.03) — (0.01)
ROACE excluding acquisition expenses 14.72 13.34 12.20 12.99 12.70 14.01 12.29
Credit loss expense acquired loans — — — 1.11 — — —
Tax effect — — — (0.23) — — —
ROACE excluding credit loss expense acquired loans 14.72 13.34 12.20 13.87 12.70 14.01 12.29
Gain on sale of ESOP trustee accounts — — — (1.28) — — —
Tax effect — — — 0.27 — — —
ROACE excluding gain on sale of ESOP trustee accounts 14.72 13.34 12.20 12.86 12.70 14.01 12.29
DOL ESOP settlement expenses — — 1.05 — — — —
Tax effect — — (0.17) — — — —
ROACE excluding DOL ESOP settlement expenses 14.72 13.34 13.08 12.86 12.70 14.01 12.29
(Gain) / loss on sale of investment securities — — — — — — (0.26)
Tax effect — — — — — — 0.06
ROACE excluding (gain) / loss on sale of investment securities 14.72 13.34 13.08 12.86 12.70 14.01 12.09
Death benefit on BOLI (0.38) — — (0.28) (0.15) (0.19) (0.08)
ROACE excluding death benefit on BOLI 14.34 13.34 13.08 12.58 12.55 13.82 12.01
Prepayment penalties on borrowings — — — — 0.07 — 0.04
Tax effect — — — — (0.01) — (0.01)
ROACE excluding prepayment penalties on borrowings 14.34 % 13.34 % 13.08 % 12.58 % 12.61 % 13.82 % 12.04 %
Adjusted ROACE 14.34 % 13.34 % 13.08 % 12.58 % 12.61 % 13.82 % 12.04 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Non–GAAP Reconciliation of Return on Average Tangible Equity
(Dollars in Thousands, Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2022 2022 2021 2021 2021 2022 2021
Average common equity $ 677,299 $ 716,341 $ 719,643 $ 724,412 $ 706,652 $ 697,004 $ 702,052
Less: Average intangible assets 175,321 176,356 179,594 174,920 173,905 175,836 174,343
Average tangible equity $ 501,978 $ 539,985 $ 540,049 $ 549,492 $ 532,747 $ 521,168 $ 527,709
Return on average tangible equity (“ROATE”) as reported 19.86 % 17.70 % 15.74 % 16.66 % 16.69 % 18.74 % 16.28 %
Acquisition expenses — — 0.65 0.58 0.18 — 0.09
Tax effect — — (0.14) (0.12) (0.04) — (0.02)
ROATE excluding acquisition expenses 19.86 17.70 16.25 17.12 16.83 18.74 16.35
Credit loss expense acquired loans — — — 1.47 — — —
Tax effect — — — (0.31) — — —
ROATE excluding credit loss expense acquired loans 19.86 17.70 16.25 18.28 16.83 18.74 16.35
Gain on sale of ESOP trustee accounts — — — (1.68) — — —
Tax effect — — — 0.35 — — —
ROATE excluding gain on sale of ESOP trustee accounts 19.86 17.70 16.25 16.95 16.83 18.74 16.35
DOL ESOP settlement expenses — — 1.40 — — — —
Tax effect — — (0.23) — — — —
ROATE excluding DOL ESOP settlement expenses 19.86 17.70 17.42 16.95 16.83 18.74 16.35
(Gain) / loss on sale of investment securities — — — — — — (0.35)
Tax effect — — — — — — 0.07
ROATE excluding (gain) / loss on sale of investment securities 19.86 17.70 17.42 16.95 16.83 18.74 16.07
Death benefit on BOLI (0.51) — — (0.37) (0.20) (0.25) (0.10)
ROATE excluding death benefit on BOLI 19.35 17.70 17.42 16.58 16.63 18.49 15.97
Prepayment penalties on borrowings — — — — 0.09 — 0.05
Tax effect — — — — (0.02) — (0.01)
ROATE excluding prepayment penalties on borrowings 19.35 % 17.70 % 17.42 % 16.58 % 16.70 % 18.49 % 16.01 %
Adjusted ROATE 19.35 % 17.70 % 17.42 % 16.58 % 16.70 % 18.49 % 16.01 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Earnings Conference Call

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

Participants may access the live conference call on July 28, 2022 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833–974–2379 from the United States, 866–450–4696 from Canada or 412–317–5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through August 4, 2022. The replay may be accessed by dialing 877–344–7529 from the United States, 855–669–9658 from Canada or 412–317–0088 from other international locations, and entering the access code 7261627.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.6 billion–asset bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential, indirect auto, and other secured consumer lending to in–market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in–market business banking and treasury management services, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Forward Looking Statements

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

Although management believes that the expectations reflected in such forward–looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Horizon’s reports filed with the Securities and Exchange Commission, including those described in Horizon’s Annual Report on Form 10–K and its quarterly reports on Form 10–Q. Further, statements about the effects of the COVID–19 pandemic on our business, operations, financial performance, and prospects may constitute forward–looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward–looking statements due to factors and future developments that are uncertain, unpredictable, and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties, and us. Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward–looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Financial Highlights
(Dollars in Thousands, Unaudited)
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Balance sheet:
Total assets $ 7,640,936 $ 7,420,328 $ 7,374,903 $ 7,534,240 $ 6,109,227
Interest earning deposits & federal funds sold 5,646 20,827 502,364 872,540 209,304
Interest earning time deposits 3,799 4,046 4,782 5,767 6,994
Investment securities 3,093,792 3,118,641 2,713,255 2,438,874 1,844,470
Commercial loans 2,363,991 2,259,327 2,213,945 2,173,200 2,104,627
Mortgage warehouse loans 116,488 105,118 109,031 169,909 205,311
Residential mortgage loans 608,582 593,372 594,382 603,540 559,437
Consumer loans 848,749 753,900 727,259 713,432 650,144
Total loans 3,937,810 3,711,717 3,644,617 3,660,081 3,519,519
Earning assets 7,070,667 6,883,254 6,865,051 7,006,513 5,610,538
Non–interest bearing deposit accounts 1,328,213 1,325,570 1,360,338 1,324,757 1,102,950
Interest bearing transaction accounts 3,760,890 3,782,644 3,711,767 3,875,882 3,105,328
Time deposits 756,482 743,283 730,886 779,260 573,348
Total deposits 5,845,585 5,851,497 5,802,991 5,979,899 4,781,626
Borrowings 959,222 728,664 712,739 670,753 439,094
Subordinated notes 58,823 58,786 58,750 58,713 58,676
Junior subordinated debentures issued to capital trusts 56,907 56,850 56,785 56,722 56,662
Total stockholders’ equity 657,865 677,450 723,209 708,542 710,374

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Income statement:
Net interest income $ 53,008 $ 48,171 $ 49,976 $ 46,544 $ 42,632
Credit loss expense (recovery) 240 (1,386) (2,071) 1,112 (1,492)
Non–interest income 12,434 14,155 12,828 16,044 15,207
Non–interest expense 36,368 36,610 39,370 34,349 33,388
Income tax expense 3,975 3,539 4,080 4,056 3,770
Net income $ 24,859 $ 23,563 $ 21,425 $ 23,071 $ 22,173
Per share data:
Basic earnings per share $ 0.57 $ 0.54 $ 0.49 $ 0.53 $ 0.50
Diluted earnings per share 0.57 0.54 0.49 0.52 0.50
Cash dividends declared per common share 0.16 0.15 0.15 0.15 0.13
Book value per common share 15.10 15.55 16.61 16.28 16.16
Tangible book value per common share 11.11 11.54 12.58 12.05 12.24
Market value – high 19.21 23.45 21.14 18.47 19.13
Market value – low $ 16.72 $ 18.67 $ 18.01 $ 15.83 $ 16.98
Weighted average shares outstanding – Basis 43,572,796 43,554,713 43,534,298 43,810,729 43,950,501
Weighted average shares outstanding – Diluted 43,684,691 43,734,556 43,733,416 43,958,870 44,111,103
Key ratios:
Return on average assets 1.33 % 1.31 % 1.14 % 1.41 % 1.45 %
Return on average common stockholders’ equity 14.72 13.34 11.81 12.64 12.59
Net interest margin 3.19 2.99 2.97 3.17 3.14
Allowance for credit losses to total loans 1.33 1.41 1.51 1.55 1.58
Average equity to average assets 9.06 9.79 9.64 11.13 11.50
Efficiency ratio 55.57 58.74 62.69 54.88 57.73
Annualized non–interest expense to average assets 1.95 2.03 2.09 2.09 2.18
Bank only capital ratios:
Tier 1 capital to average assets 9.17 8.83 8.50 8.38 8.79
Tier 1 capital to risk weighted assets 13.74 13.23 13.69 11.86 12.80
Total capital to risk weighted assets 14.81 14.25 14.72 12.97 14.09

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
Six Months Ended
June 30, June 30,
2022 2021
Income statement:
Net interest income $ 101,179 $ 85,170
Credit loss expense (recovery) (1,146) (1,125)
Non–interest income 26,589 29,080
Non–interest expense 72,978 65,560
Income tax expense 7,514 7,220
Net income $ 48,422 $ 42,595
Per share data:
Basic earnings per share $ 1.11 $ 0.97
Diluted earnings per share 1.11 0.97
Cash dividends declared per common share 0.31 0.26
Book value per common share 15.10 16.16
Tangible book value per common share 11.11 12.24
Market value – high 23.45 19.94
Market value – low $ 16.72 $ 16.98
Weighted average shares outstanding – Basis 43,563,804 43,935,111
Weighted average shares outstanding – Diluted 43,711,822 44,092,577
Key ratios:
Return on average assets 1.32 % 1.42 %
Return on average common stockholders’ equity 14.01 12.23
Net interest margin 3.03 3.21
Allowance for credit losses to total loans 1.33 1.58
Average equity to average assets 9.43 11.62
Efficiency ratio 57.12 57.38
Annualized non–interest expense to average assets 1.99 2.19
Bank only capital ratios:
Tier 1 capital to average assets 9.17 8.79
Tier 1 capital to risk weighted assets 13.74 12.80
Total capital to risk weighted assets 14.81 14.09

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Financial Highlights
(Dollars in Thousands Except Ratios, Unaudited)
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Loan data:
Substandard loans $ 59,377 $ 57,928 $ 56,968 $ 91,317 $ 82,488
30 to 89 days delinquent 6,739 6,358 8,536 3,997 3,336
Non–performing loans:
90 days and greater delinquent – accruing interest 210 107 145 200 —
Trouble debt restructures – accruing interest 2,535 2,372 2,391 2,433 1,853
Trouble debt restructures – non–accrual 1,345 1,501 1,521 1,604 2,294
Non–accrual loans 16,116 16,133 14,962 25,137 18,175
Total non–performing loans $ 20,206 $ 20,113 $ 19,019 $ 29,374 $ 22,322
Non–performing loans to total loans 0.51 % 0.54 % 0.53 % 0.80 % 0.63 %
Allocation of the Allowance for Credit Losses
--- --- --- --- --- --- --- --- --- --- ---
(Dollars in Thousands, Unaudited)
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Commercial $ 34,802 $ 37,789 $ 40,775 $ 43,121 $ 41,766
Residential mortgage 4,422 4,351 3,856 3,737 4,108
Mortgage warehouse 1,067 1,055 1,059 1,054 1,155
Consumer 12,059 9,313 8,596 8,867 8,620
Total $ 52,350 $ 52,508 $ 54,286 $ 56,779 $ 55,649 Net Charge–offs (Recoveries)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in Thousands Except Ratios, Unaudited)
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Commercial $ (75) $ 38 $ 926 $ (25) $ 40
Residential mortgage 40 (10) 126 (29) (23)
Mortgage warehouse — — — — —
Consumer 319 108 360 36 22
Total $ 284 $ 136 $ 1,412 $ (18) $ 39
Percent of net charge–offs (recoveries) to average loans outstanding for the period 0.01 % 0.00 % 0.04 % 0.00 % 0.00 %

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Total Non–performing Loans
(Dollars in Thousands Except Ratios, Unaudited)
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Commercial $ 8,008 $ 7,844 $ 7,509 $ 16,121 $ 10,345
Residential mortgage 8,469 8,584 8,005 8,641 7,841
Mortgage warehouse — — — — —
Consumer 3,729 3,685 3,505 4,612 4,136
Total $ 20,206 $ 20,113 $ 19,019 $ 29,374 $ 22,322
Non–performing loans to total loans 0.51 % 0.54 % 0.53 % 0.80 % 0.63 % Other Real Estate Owned and Repossessed Assets
--- --- --- --- --- --- --- --- --- --- ---
(Dollars in Thousands, Unaudited)
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Commercial $ 1,414 $ 2,245 $ 2,861 $ 2,861 $ 1,400
Residential mortgage — 170 695 117 37
Mortgage warehouse — — — — —
Consumer 58 5 5 29 46
Total $ 1,472 $ 2,420 $ 3,561 $ 3,007 $ 1,483

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Average Balance Sheets
(Dollars in Thousands, Unaudited)
Three Months Ended Three Months Ended
June 30, 2022 June 30, 2021
Average<br>Balance Interest Average<br>Rate Average<br>Balance Interest Average<br>Rate
Assets
Interest earning assets
Federal funds sold $ 7,083 $ 17 0.96 % $ 359,184 $ 98 0.11 %
Interest earning deposits 15,661 26 0.67 % 29,584 44 0.60 %
Investment securities – taxable 1,770,816 8,673 1.96 % 645,139 2,386 1.48 %
Investment securities – non–taxable (1) 1,374,032 7,307 2.70 % 1,054,703 5,656 2.72 %
Loans receivable (2) (3) 3,759,718 41,549 4.45 % 3,570,774 39,236 4.43 %
Total interest earning assets 6,927,310 57,572 3.46 % 5,659,384 47,420 3.48 %
Non–interest earning assets
Cash and due from banks 98,040 84,469
Allowance for credit losses (52,525) (57,196)
Other assets 503,413 455,850
Total average assets $ 7,476,238 $ 6,142,507
Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits $ 4,540,959 $ 1,677 0.15 % $ 3,680,796 $ 2,053 0.22 %
Borrowings 613,282 1,409 0.92 % 334,804 1,256 1.50 %
Repurchase agreements 141,470 41 0.12 % 119,052 40 0.13 %
Subordinated notes 58,800 881 6.01 % 58,653 881 6.02 %
Junior subordinated debentures issued to capital trusts 56,870 556 3.92 % 56,627 558 3.95 %
Total interest bearing liabilities 5,411,381 4,564 0.34 % 4,249,932 4,788 0.45 %
Non–interest bearing liabilities
Demand deposits 1,335,779 1,139,068
Accrued interest payable and other liabilities 51,779 46,855
Stockholders’ equity 677,299 706,652
Total average liabilities and stockholders’ equity $ 7,476,238 $ 6,142,507
Net interest income / spread $ 53,008 3.12 % $ 42,632 3.03 %
Net interest income as a percent of average interest earning assets (1) 3.19 % 3.14 %
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
(2) Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non–accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. The average rate is presented on a tax equivalent basis.

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Average Balance Sheets
(Dollars in Thousands, Unaudited)
Six Months Ended Six Months Ended
June 30, 2022 June 30, 2021
Average<br>Balance Interest Average<br>Rate Average<br>Balance Interest Average<br>Rate
Assets
Interest earning assets
Federal funds sold $ 121,707 $ 108 0.18 % $ 313,467 $ 164 0.11 %
Interest earning deposits 18,154 50 0.56 % 27,567 90 0.66 %
Investment securities – taxable 1,709,014 16,064 1.90 % 528,250 3,822 1.46 %
Investment securities – non–taxable (1) 1,326,819 14,004 2.69 % 1,005,855 10,879 2.76 %
Loans receivable (2) (3) 3,688,586 79,428 4.36 % 3,674,977 80,054 4.41 %
Total interest earning assets 6,864,280 109,654 3.34 % 5,550,116 95,009 3.57 %
Non–interest earning assets
Cash and due from banks 101,340 84,866
Allowance for credit losses (53,411) (57,486)
Other assets 479,139 462,401
Total average assets $ 7,391,348 $ 6,039,897
Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits $ 4,509,962 $ 3,173 0.14 % $ 3,602,882 $ 4,396 0.25 %
Borrowings 558,867 2,453 0.89 % 350,110 2,487 1.43 %
Repurchase agreements 140,610 77 0.11 % 115,392 78 0.14 %
Subordinated notes 58,782 1,761 6.04 % 58,635 1,761 6.06 %
Junior subordinated debentures issued to capital trusts 56,839 1,011 3.59 % 56,599 1,117 3.98 %
Total interest bearing liabilities 5,325,060 8,475 0.32 % 4,183,618 9,839 0.47 %
Non–interest bearing liabilities
Demand deposits 1,329,316 1,101,377
Accrued interest payable and other liabilities 39,968 52,850
Stockholders’ equity 697,004 702,052
Total average liabilities and stockholders’ equity $ 7,391,348 $ 6,039,897
Net interest income / spread $ 101,179 3.02 % $ 85,170 3.10 %
Net interest income as a percent of average interest earning assets (1) 3.03 % 3.21 %
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
(2) Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non–accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. The average rate is presented on a tax equivalent basis.

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Condensed Consolidated Balance Sheets
(Dollars in Thousands)
June 30,<br>2022 December 31,<br>2021
(Unaudited)
Assets
Cash and due from banks $ 108,848 $ 593,508
Interest earning time deposits 3,799 4,782
Investment securities, available for sale 1,041,020 1,160,812
Investment securities, held to maturity (fair value $1,754,214 and $1,559,991) 2,052,772 1,552,443
Loans held for sale 2,943 12,579
Loans, net of allowance for credit losses of $52,350 and $54,286 3,885,460 3,590,331
Premises and equipment, net 93,778 93,441
Federal Home Loan Bank stock 26,677 24,440
Goodwill 154,572 154,572
Other intangible assets 19,090 20,941
Interest receivable 28,996 26,137
Cash value of life insurance 94,625 97,150
Other assets 128,356 80,753
Total assets $ 7,640,936 $ 7,411,889
Liabilities
Deposits
Non–interest bearing $ 1,328,213 $ 1,360,338
Interest bearing 4,517,372 4,442,653
Total deposits 5,845,585 5,802,991
Borrowings 959,222 712,739
Subordinated notes 58,823 58,750
Junior subordinated debentures issued to capital trusts 56,907 56,785
Interest payable 2,402 2,235
Other liabilities 60,132 55,180
Total liabilities 6,983,071 6,688,680
Commitments and contingent liabilities
Stockholders’ equity
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares — —
Common stock, no par value, Authorized 99,000,000 shares<br><br>Issued 43,883,415 and 43,766,931 shares,<br><br>Outstanding 43,572,796 and 43,547,942 shares — —
Additional paid–in capital 352,412 352,122
Retained earnings 398,517 363,742
Accumulated other comprehensive income (93,064) 7,345
Total stockholders’ equity 657,865 723,209
Total liabilities and stockholders’ equity $ 7,640,936 $ 7,411,889

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2022 2022 2021 2021 2021
Interest income
Loans receivable $ 41,549 $ 37,879 $ 41,171 $ 40,392 $ 39,236
Investment securities – taxable 8,716 7,506 6,491 4,565 2,528
Investment securities – non–taxable 7,307 6,697 6,456 5,911 5,656
Total interest income 57,572 52,082 54,118 50,868 47,420
Interest expense
Deposits 1,677 1,496 1,663 1,808 2,053
Borrowed funds 1,450 1,080 1,061 1,075 1,296
Subordinated notes 881 880 881 880 881
Junior subordinated debentures issued to capital trusts 556 455 537 561 558
Total interest expense 4,564 3,911 4,142 4,324 4,788
Net interest income 53,008 48,171 49,976 46,544 42,632
Credit loss expense (recovery) 240 (1,386) (2,071) 1,112 (1,492)
Net interest income after credit loss expense (recovery) 52,768 49,557 52,047 45,432 44,124
Non–interest Income
Service charges on deposit accounts 2,833 2,795 2,510 2,291 2,157
Wire transfer fees 170 159 205 210 222
Interchange fees 3,582 2,780 3,082 2,587 2,892
Fiduciary activities 1,405 1,503 1,591 2,124 1,961
Gains / (losses) on sale of investment securities — — — — —
Gain on sale of mortgage loans 2,501 2,027 4,167 4,088 5,612
Mortgage servicing income net of impairment 319 3,489 300 336 1,503
Increase in cash value of bank owned life insurance 519 510 547 534 502
Death benefit on bank owned life insurance 644 — — 517 266
Other income 461 892 426 3,357 92
Total non–interest income 12,434 14,155 12,828 16,044 15,207
Non–interest expense
Salaries and employee benefits 19,957 19,735 20,549 18,901 17,730
Net occupancy expenses 3,190 3,561 3,204 2,935 3,084
Data processing 2,607 2,537 2,672 2,526 2,388
Professional fees 283 314 562 522 588
Outside services and consultants 2,485 2,525 2,197 2,330 2,220
Loan expense 2,497 2,545 2,803 2,645 3,107
FDIC insurance expense 775 725 798 279 500
Other losses 362 168 1,925 69 6
Other expenses 4,212 4,500 4,660 4,142 3,765
Total non–interest expense 36,368 36,610 39,370 34,349 33,388
Income before income taxes 28,834 27,102 25,505 27,127 25,943
Income tax expense 3,975 3,539 4,080 4,056 3,770
Net income $ 24,859 $ 23,563 $ 21,425 $ 23,071 $ 22,173
Basic earnings per share $ 0.57 $ 0.54 $ 0.49 $ 0.53 $ 0.50
Diluted earnings per share 0.57 0.54 0.49 0.52 0.50

Horizon Bancorp, Inc. Reports Record Second Quarter 2022 EPS of $0.57

Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Six Months Ended
June 30, June 30,
2022 2021
Interest income
Loans receivable $ 79,428 $ 80,054
Investment securities – taxable 16,222 4,076
Investment securities – non–taxable 14,004 10,879
Total interest income 109,654 95,009
Interest expense
Deposits 3,173 4,396
Borrowed funds 2,530 2,565
Subordinated notes 1,761 1,761
Junior subordinated debentures issued to capital trusts 1,011 1,117
Total interest expense 8,475 9,839
Net interest income 101,179 85,170
Credit loss expense (recovery) (1,146) (1,125)
Net interest income after credit loss expense (recovery) 102,325 86,295
Non–interest Income
Service charges on deposit accounts 5,628 4,391
Wire transfer fees 329 477
Interchange fees 6,362 5,232
Fiduciary activities 2,908 3,704
Gains / (losses) on sale of investment securities — 914
Gain on sale of mortgage loans 4,528 10,908
Mortgage servicing income net of impairment 3,808 1,716
Increase in cash value of bank owned life insurance 1,029 1,013
Death benefit on bank owned life insurance 644 266
Other income 1,353 459
Total non–interest income 26,589 29,080
Non–interest expense
Salaries and employee benefits 39,692 34,601
Net occupancy expenses 6,751 6,402
Data processing 5,144 4,764
Professional fees 597 1,132
Outside services and consultants 5,010 3,922
Loan expense 5,042 5,929
FDIC insurance expense 1,500 1,300
Other losses 530 289
Other expenses 8,712 7,221
Total non–interest expense 72,978 65,560
Income before income taxes 55,936 49,815
Income tax expense 7,514 7,220
Net income $ 48,422 $ 42,595
Basic earnings per share $ 1.11 $ 0.97
Diluted earnings per share 1.11 0.97

27

hbnc20222q22-final

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 | JULY 27, 2022

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Forward-Looking Statements This presentation may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in the presentation materials should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Horizon’s reports filed with the Securities and Exchange Commission (the “SEC”), including those described in Horizon’s Annual Report on Form 10-K for the year ended December 31, 2021 and other subsequent filings with the SEC. Further, statements about the effects of the COVID-19 pandemic on our business, operations, financial performance, and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable, and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties, and us. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law. Non-GAAP Measures Certain non-GAAP financial measures are presented herein. Horizon believes they are useful to investors and provide a greater understanding of Horizon’s business without giving effect to non-recurring costs and non-core items. For each non-GAAP financial measure, we have presented comparable GAAP measures and reconciliations of the non-GAAP measures to those GAAP measures in the Appendix to this presentation. Please see slides 39-57. 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 2Q22 Highlights Record Earnings • Record diluted EPS of $0.57 • ROATE of 19.86%* and ROAA of 1.33% • Pre-tax, pre-provision net income* up 13.1% from the linked quarter and 18.9% from the prior year period Organic loan growth • Total loans up 6.2% or 25.1% annualized, ex. PPP and sold participation loans • Commercial loans up 4.9% or 19.7% annualized, ex PPP and sold participation loans • Consumer loans up 12.6% or 50.5% annualized • Residential mortgage up 2.6% or 10.3% annualized Disciplined expense management • Non-interest expense/average assets was 1.95% • Efficiency ratio 55.57% Sequential-quarter NIM expansion • 3.19% reported NIM up 20 bps from linked quarter • 3.12% adjusted NIM up 19 bps from linked quarter* * See Footnote Index and non-GAAP reconciliations in Appendix. ($000s except per share data) 2Q22 Change % vs. 1Q22 2Q21 Income Statement Pre-tax, pre-provision net income* $29,074 13.1% 18.9% Reported net income $24,859 5.5% 12.1% Diluted EPS $0.57 5.6% 14.0% Efficiency ratio 55.57% (3.17)% (2.16)% Annualized non-interest exp. / avg. assets 1.95% (0.08)% (0.23)% Return on average assets 1.33% 0.02% (0.12)% Return on average tangible equity* 19.86% 2.16% 3.17% Balance Sheet Total loans (ex PPP & sold participations) $3,887,367 6.2% 0.0% Commercial loans (ex PPP & sold participations) $2,310,605 4.9% 0.0% Consumer loans $848,749 12.6% 0.0% Deposits $5,845,585 (0.1)% 22.3% Credit Quality Allowance for credit losses to total loans 1.33% (8) bps (12) Bps NPA / total assets ratio 0.28% (2) bps (11) Bps Net charge-offs to avg. loans for the period 0.01% 1 bps 1 bps

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 5 Disciplined operating culture Compelling value supported by commitment to dividend Well-established long-term growth goals Very attractive Midwest markets Deliberate mix of businesses delivers very strong operational performance Why Horizon? A High-Performing Operator in Growth Markets 1.32% ROAA, 18.74% ROATE & 1.99% operating expenses/avg. assets YTD Superior return metrics include GAAP ROAA, ROAE and operating expenses/avg. assets Closed 10 branches in 2021 and will close an additional 7 branches in 2022 Additional closings contributing to sustained tech/digital investments and consistently low expense/assets, efficiency and compensation/ FTE ratios 157% P/TBV and 8.2x P/E (TTM) with 3.7% dividend yield Recent HBNC share price presents compelling value, while unbroken 30-year record of quarterly cash dividends to shareholders continues in 2022 with an annual dividend amount of 64¢/share, representing a 28.1% payout ratio 17% average asset growth 2017-2021 17% annualized loan growth YTD (excluding PPP and sold commercial participation loans) Stable core deposit base In line with long-term goals of meaningfully outpacing GDP and industry, ~50/50 growth organic/acquired, and organic growth ≥3x GDP 30 minutes from downtown Chicago and Attractive Midwest Markets Illinois exodus, Indiana’s infrastructure and business-friendly climate, and Indiana and Michigan’s major global employers, entrepreneurs and research universities all contribute to favorable economic trends in Horizon markets >50% of total loans comprise commercial lending Commercial loan portfolio, excluding PPP loans, increased approximately $108 million, or 20% annualized, during Q2 2022 (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation)

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® A History of Profitable Growth Positioned Well for Future Organic Growth $0.72 $0.76 $0.91 $1.13 $1.22 $1.26 $1.31 $1.39 $1.40 $1.55 $1.85 $1.76 $2.08 $2.65 $3.14 $3.96 $4.25 $5.24 $5.89 $7.36 $7.64 $5 $7 $7 $7 $7 $8 $9 $9 $10 $13 $20 $20 $18 $21 $24 $33 $53 $67 $68 $87 $93 - 10 20 30 40 50 60 70 80 90 100 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 June '22 TTM Total Assets ($B) Net Income ($M) CAGRs 2002 through 2021 Total Assets – 13.0% Net Income – 20.0% 7 12 15 Organic Expansions M&A Transactions

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 9 Multiple Revenue Streams Diversifies Risk 9 Retail Banking Business Banking Mortgage Banking Wealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles Serving the Right Side of Chicago Headquartered in Michigan City, IN, with 78 locations in attractive markets in Indiana and Michigan Double commuter track addition to the South Shore train lines supports growth in Northwest Indiana, which offers proximity to Chicago, with lower taxes and cost of living Major colleges and universities throughout footprint, including Notre Dame University, Purdue University, University of Michigan and Michigan State University Note: Total loan figures for Indiana and Michigan are as of 6/30/22 and do not include Mortgage Warehouse. INDIANA 6/30/22 Loans: $2.2B 57% of Loans MICHIGAN 6/30/22 Loans: $1.7B 43% of Loans OHIO ILLINOIS WISCONSIN KENTUCKY $1.7B IN LOANS $2.2B IN LOANS Diversified & Attractive Footprint

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Digital Banking Excellence Sophisticated Internal Capabilities Supported by Best-in-Class Third Parties 11 NEW IN 2022 • Online deposit accounting opening platform to include time deposit, IRA and HSA accounts • Develop real-time API automations through data and system enhancements to anticipate customer needs and expand relationships • Enhance capabilities within the mobile banking app to include account opening, in- branch appointments and more • Use data to expand customer segmentation and profitability models In-house CRM platform allows Horizon to remain nimble • Data warehouse combined with transaction analysis from Core allows us to better anticipate customers’ needs and develop targeted marketing In-house core and prior tech investments are true competitive advantages • Prior investments to build out internal capabilities ensures that Horizon’s technology budget is focused on enhancing the customer experience and efficiency of its team of Advisors in cost effective manner Shifting Tech Spend to Strategic Customer & Employee Facing Applications 9% 5% 17% 18% 43% 25% 15% 14% 16% 38% 0% 20% 40% 60% 80% 100% 2018 2021 Core Data Communication Remote Delivery Infrastructure Strategic Applications Leveraging third party relationship to surround cost effective in-house Core • Third parties like Nintex, Fox Trot and Nautilus automate workflows for historically manual tasks, reducing cost and waste while sending direct updates to our systems • Automation provides Horizon’s Advisors targeted, current information and more time with customers Growing customer base digitally and efficiently • 19% of accounts opened online on average YTD’22, up from 9% in 4Q20

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Community Banking at Scale Efficient Utilization of Talent, Technology & Branch Network 12 50 50 50 60 65 81 32 32 46 56 62 63 74 73 78 665 701 716 839 788 900 0 200 400 600 800 1000 - 50 100 150 200 250 2016 2017 2018 2019 2020 2021 Evolving Multi-Channel Delivery ATMs ITMs Branches Employees $5.4 $5.8 $6.0 $6.5 $7.3 $8.7 $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 - 150,000 300,000 450,000 600,000 750,000 900,000 2016 2017 2018 2019 2020 2021 M ill io n s Technology Meeting Customer Demands & Enhancing Efficiency of Team Digital Transactions Branch Transactions Total Assets / Employee Technology enhances Advisors’ ability to serve customers and enhance bottom-line • Video banking team serves multiple markets through robust network of 46 interactive teller machines (ITMs) • ITMs proved to be valuable and scalable amid the pandemic, with 14 new ITMs rolled out ahead of 2021 branch acquisition • 86% of online chats answered by bots, freeing Advisors to provide more value-added services to customers • Three bank owned and operated Communication Centers supported by branch staff as needed • Investments in technology improve efficiency as measured by growth in assets per employee from $5.4 million in 2016 to $8.7 million in 2021

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 13 Productive Use of Capital Deploying capital through productive acquisitions and to drive organic growth • Completed acquisition of 14 Michigan branches and associated deposits and loans in 3Q21, adding mass and scale to Horizon’s Midland market and extending its footprint into attractive markets in the northern and central regions of Michigan’s lower peninsula • Investing in commercial lenders and consumer platforms to leverage capital through organic loan growth Longstanding dividend • 30+ years of uninterrupted quarterly cash dividend • Horizon increased its quarterly dividend during the second quarter of 2022 by 6.3% to $0.16 per share, resulting in tenth dividend increase in the last 11 years • Current implied annualized dividend yield of 3.7% as of June 30, 2022 • Strong cash position at the holding company represents approximately 6 quarters of the current dividend plus fixed costs Strong share repurchase authority • 1.45 million shares available for repurchase under current buyback program authorization FUTURE OUTLOOK Targeted dividend payout ratio of 25-35% 50/50 mix of organic and acquired growth Continue to seek opportunities to leverage capital Continue opportunistic stock repurchases

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 14 Financial Highlights

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 15 $ M $24.5 $28.2 $23.4 $25.7 $29.1 $22.2 $23.0 $23.7 $23.6 $24.2 $0.50 $0.52 $0.54 $0.54 $0.56 2Q21 3Q21 4Q21 1Q22 2Q22 Adj. Net Income(1) Pre-tax, Pre-provision Income Adj. Net Income Adj. EPS 13.94% 14.34% 14.45% 14.56% 16.84% 2Q21 3Q21 4Q21 1Q22 2Q22 Adj. PTPP ROACE(1) Adj. PTPP ROACE $42.5 $45.7 $48.2 $47.3 $51.8 3.13% 3.12% 2.86% 2.93% 3.12% 2Q21 3Q21 4Q21 1Q22 2Q22 Adj. Net Interest Income(1) Adj. Net Interest Income Adj. NIM $ M (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) 16.70% 16.58% 17.42% 17.70% 19.86% 2Q21 3Q21 4Q21 1Q22 2Q22 Adj. ROATE(1) Adj. ROATE Strong Core Earnings

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 16 Asset Sensitive Balance Sheet Drives Higher Net Interest Income with Rising Rates • Of the $2.0 billion of adjustable rate loans, $1.2 billion adjust with a rate change to their index • Deposit BETA’s range from 4.0% for consumer deposits to 45.0% on money market accounts and public funds • Lagging deposit BETA’s when rates increased and growth in adjustable rate assets increased asset sensitivity * Based on 12-month parallel rate shock as of March 31, 2022 and June 30, 2022. $203 $206 $207 $208 $210 $224 $231 $237 $243 $250 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% $- $50 $100 $150 $200 $250 $300 Base 100 bp 200 bp 300 bp 400 bp M ill io n s NII Volatility* 3/31/22 NII 6/30/22 NII 3/31/22 % Impact on NII 6/30/22 % Impact on NII 12-Month Parallel Interest Rate Shock

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 3.66% 3.71% 3.63% 3.61% 3.58% 3.60% 3.59% 3.43% 3.46% 3.61% 3.67% 3.49% 3.44% 3.35% 3.27% 3.44% 3.17% 3.13% 3.12% 2.86% 2.93% 3.12% 0.48% 0.50% 0.55% 0.63% 0.70% 0.82% 0.93% 1.07% 1.19% 1.13% 1.10% 1.04% 0.95% 0.60% 0.53% 0.45% 0.40% 0.35% 0.30% 0.25% 0.24% 0.27% 0.80% 1.05% 1.25% 1.29% 1.53% 1.80% 2.01% 2.28% 2.50% 2.50% 2.30% 1.83% 1.40% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.29% 0.82% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Net Interest Margin Adj. NIM (1) Adj. Cost of Core Funds (1) Avg. Fed Funds Rate (2) • Loan growth, cash deployed to higher yielding assets and increasing interest rates moving net interest margin higher • Cost of core funds increased 3 basis points during the quarter, the average Fed Funds rate increased 55 basis points 17 (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) (2) Source: S&P Global Market Intelligence. Increasing Net Interest Income Expect Continued Improvement

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Federal agency CMO, 3% State and municipal, 51% Federal agency MBS, 19% Private labeled MBS, 1% U.S. Treasury, 18% Corporate, 8% Total Investments at 6/30/22 $3.1B 18 • $3 billion investment portfolio is expected to be maintained during 2022 • Book yield of 2.26%, effective duration of 6.9 years • $400 million of cash flows over the next two years with book yields rolling off lower than the portfolio yield Investment Portfolio Significant Contribution to Interest Income Federal agency CMO, 4% State and municipal, 55% Federal agency MBS, 19% Private labeled MBS, 1% U.S. Treasury, 12% Corporate, 9% Total Investments at 12/31/21 $2.7B

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 19 • Other Comprehensive Income (“OCI”) loss reduced Tangible Common Equity (“TCE”) by 46bps in the second quarter • We have the intent and ability to hold the investments to maturity and no plans to sell • Cashflows can be used to fund future loan growth as needed • Retained earnings and investments moving down the curve would earnback capital loss • No impact to regulatory capital ratios • With an additional 100bp shock to the AFS investments over the next quarter, TCE is estimated to be 5.92%, or another 56bp decline from the second quarter • In the fourth quarter, we moved selected AFS investments to held to maturity (“HTM”) investments, at June 30, 2022, 66% of investments were HTM • Bank capital is strong and sufficient to fund growth and will not restrict the ability for merger or share repurchase activities • OCI only considers AFS investments and derivatives, the economic value of equity (“EVE”) increased over the fourth quarter when deposits are included in the valuations Quick Earnback of Other Comprehensive Income

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Non-interest bearing 23% Interest bearing(1) 64% CDs 13% 20 • In-market relationships, strategic pricing and runoff of higher-priced time deposits, contributed to total deposit cost of 0.11% • Deposit beta’s have lagged short term rate increases by only absorbing 3% of the rate move in the second quarter • Account and deposit retention data very strong to date Average Cost(1) Average Deposits ($000s) 2Q 2022 Average Balances 1Q 2022 Average Balances 2Q 2022 (QTD) 1Q 2022 (QTD) Non-interest bearing $1,335,779 $1,322,781 0.00% 0.00% Interest bearing (excluding CDs) $3,796,619 $3,745,244 0.09% 0.07% Time Deposits (CDs) $744,340 $733,377 0.47% 0.47% Total Deposits $5,876,738 $5,801,402 0.11% 0.10% (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) Stable Low Cost Core Deposits Total Deposits at 6/30/22 $5.8B

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 57.7% 54.9% 62.7% 58.7% 55.6% 57.5% 56.2% 58.3% 58.7% 56.1% 2Q21 3Q21 4Q21 1Q22 2Q22 Efficiency Ratio Adj. Efficiency Ratio • Annualized non-interest expense was 1.95% of average assets, supporting full year 2022 target of less than 2% • Adjusted efficiency ratio steady at 56.13%(1) • Planned 2022 branch rationalization payback in approximately six months after one time charges of approximately $380,000 recorded during 2Q ‘22 21 Efficiency Ratio(1) 2Q ’22 Highlights (1) Footnote Index included in Appendix (see slides 39-57 for non-GAAP reconciliation) Good Expense Control 2.16% 2.05% 1.95% 2.03% 1.95% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2Q21 3Q21 4Q21 1Q22 2Q22 Other Loan Expense Outside Services & Consultants Professional Fees Data Processing Net Occupancy Expenses Salaries & Employee Benefits Annualized Non-Interest Expense to Average Assets Non-interest Expense Breakout ($M)(1)

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

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Northern Indiana, 19% Central Indiana, 30% Other, 3% Michigan, 48% Geography at 6/30/22 Non-Owner Occupied Real Estate, 49.3% C&I, 23.8% Owner Occ. Real Estate, 23.1% Agriculture, 2.4% Develop./Land, 1.0% Res. Spec. Homes, 0.4% Category at 6/30/22 $2.4 billion in Total Commercial Loans Robust Commercial Loan Growth 19.7% Annualized Growth in 2Q22 23 • Commercial loan portfolio, excluding PPP and sold participation loans, increased approximately $108.0 million, or 19.7% annualized, during Q2 2022. • Net funded new commercial loan growth was $142 million for Q2 2022 an increase from $132 million for Q1 2022, continuing recent quarterly growth trends. • Addition of 8 commercial lenders in the last 12 months in growth markets in Southwest and Southeast Michigan and Northwest Indiana, as well as the addition of 3 lenders in Northern Michigan. • Commercial pipeline of approximately $150 million entering Q3 2022. Q2 2022 pipeline of $156 million grew to $235 million in new loans closed with $142 million funded. • Q2 2022 loan growth approximately 20% multi- family, 20% warehouse/industrial and 13% healthcare, educational & social

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 24 • Excellent Production in 2021, Q1 2022 & Q2 2022 • Production – 2021 $397M, Q1 2022 $147M, Q2 2022 $195M • Expect momentum to continue through Q3 • Consumer loans increased 12.6%, or 50.5% annualized, during Q2 2022 • Indirect originations Last Twelve Months – 87% Loan to Value, 770 avg. credit score & 27% Debt to Income • Increased marketing spend for HELOC loans increase usage of line, balance transfers, etc. • Holding Asset Quality to Historical Norms • 99.6% secured consumer loans • 87.8% prime, with credit scores ≥700 • HELOC combined LTV limited to 89.9% • YTD Indirect loans with exceptions ~ 3.49% • Low delinquency at 0.44% and YTD net charge- offs less than 1 basis point Indirect Auto, 55.0% Direct Auto, 3.6% Home Equity Term, 4.8% HELOCs, 32.8% RV & Boat, 3.0% Unsecured, 0.4% Other, 0.4% Total Outstanding at 6/30/22 $849M Excellent Consumer Loan Growth 50.5% Annualized Growth in 2Q22

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 25 Jumbo, 47.2% Rental, 0.9% Conforming, 46.6% Construction, 5.3% Total Outstanding at 6/30/22 $609M • Gain on sale of mortgage loans (“GOS”) and mortgage warehousing income constituted only 5.6% of total 2Q22 revenue • GOS income totaled $2.5 million during 2Q22 • Re-positioned for current marketplace opportunities • Beating MBA 39%* and FNMA 41%* projected YTD production decreases, Horizon is down only 29% • Hired two experienced originators to cover new Northern Michigan markets • Strong construction loan program to take advantage of fast growing new construction segment of market • Federal Housing Agency increased the conforming loan limit to $647k as of 1/1/2022, providing target market opportunities to refinance Jumbo ARM’s • Portfolio mortgages • Underwriting to Fannie Mae guidelines • Full documentation of employment, income and asset verification • 44.0% of mortgages held in portfolio are ARMs • 92.5% prime with credit score ≥670 Prime Mortgage Loan Portfolio Outperforms MBA 2022 Outlook * Data obtained from MBA Mortgage Finance Forecast dated July 18, 2022 and the Fannie Mae Housing Forecast: July 2022.

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® $39 $1,412 $136 $284 0.04% 0.01% 2Q21 3Q21 4Q21 1Q22 2Q22 Net Charge Offs NCOs NCOs/Average Loans $ 0 0 0 s $22,322 $29,374 $19,019 $20,113 $20,206 0.63% 0.80% 0.53% 0.54% 0.51% 2Q21 3Q21 4Q21 1Q22 2Q22 Non-Performing Loans NPLs (period end) NPLs/Loans (period end) $ 0 0 0 s -$1,492 $1,112 -$2,071 -$1,386 $240 2Q21 3Q21 4Q21 1Q22 2Q22 $ 0 0 0 s 26 CECL $55,649 $56,779 $54,286 $52,508 $52,350 1.58% 1.55% 1.51% 1.41% 1.33% 2Q21 3Q21 4Q21 1Q22 2Q22 ACL ACL/Loans Strong Asset Quality Metrics Allowance for Credit Losses (“ACL”) (CECL Implementation 1Q20) $ 0 0 0 s Credit Loss Expense (CECL Implementation 1Q20) 2Q22 ACL/Loans excluding PPP Loans = 1.33% 1Q22 ACL/Loans excluding PPP & Warehouse Loans = 1.37%

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 27 Key Franchise Highlights Positioned well for growth in 2022 and 2023, expansion of consumer dealer network, 20% increase in CLOs, 14 offices acquired and closed 10 offices in 2021 and closing 7 more offices in 2022 Excess liquidity allows for lower deposit betas, and provides competitive edge on loan pricing. Growth oriented Midwest markets with balanced industrial bases and population inflows Low Risk Profile – High quality balance sheet with strong liquidity – approximately $3.2 billion of cash and securities as of 6/30/22 Robust capital position 14.8% Tier 1 and 15.8% Total RBC as of 6/30/22 Building for loan growth, with complementary counter-cyclical revenue streams Historical run rate demonstrates strong core operating earnings 30-year unbroken quarterly cash dividend record, with strong cash position at the holding company and ability to dividend a significant amount of cash from the bank

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Annual Commercial Loan Growth 10% 10-14% 16.90% Reduction in Mortgage Originations 15-18% 15-18% 28.80% Annual Consumer Loan Growth 5-9% 10-14% 33.70% Annual Expenses to Average Assets <2.00% <2.00% 1.99% ROAA >1.20% >1.30% 1.32% ROAE >12.5% >12.5% 14.01% Exceeding Announced 2022 Goals 28 Initial Goal 4Q21 Update Goal 1Q22 Actual 2Q22 YTD

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 29 Appendix

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 30 (1) Net Reserve Build is equal to the provision for credit losses net of net charge-offs/recoveries. Stable Credit Loss Reserves ($000s, unaudited) 12/31/21 Net Reserve(1) 1Q22 Net Reserve(1) 2Q22 6/30/22 Commercial $ 40,775 $ (2,986) $ (2,987) $ 34,802 Retail Mortgage 3,856 495 71 4,422 Warehousing 1,059 (4) 12 1,067 Consumer 8,596 717 2,746 12,059 Allowance for Credit Losses $ 54,286 $ (1,778) $ (158) $ 52,350 ACL/Total Loans 1.51% 1.33% Acquired Loan Discount $ 9,097 $ (769) $ (1,122) $ 7,206

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, $2,364M, 60% Residential Mortgage, $609M, 15% Consumer, $849M, 22% Mortgage Warehouse, $116M, 3% Held For Sale, $3M, 0% 31 Gross Loans at 6/30/22 $3.9B Commercial Loans by Industry ($M) 6/30/22 Balance % of Commercial Portfolio % of Total Loan Portfolio Lessors – Residential Multi Family $232 9.8% 5.9% Health Care, Educational & Social 166 7.0% 4.2% Office (except medical) 160 6.8% 4.1% Hotel 158 6.7% 4.0% Individual and Other Services 152 6.4% 3.9% Lessors – Student Housing 150 6.3% 3.8% Real Estate Rental & Leasing 150 6.3% 3.8% Retail 138 5.8% 3.5% Warehouse/Industrial 120 5.1% 3.0% Finance & Insurance 101 4.3% 2.6% Manufacturing 100 4.2% 2.5% Construction 89 3.8% 2.3% Retail Trade 77 3.3% 2.0% Medical Office 69 2.9% 1.8% Restaurants 66 2.8% 1.7% Lessors – Residential 1–4 Family 56 2.4% 1.4% Leisure and Hospitality 52 2.2% 1.3% Mini Storage 51 2.2% 1.3% Professional & Technical Services 43 1.8% 1.1% Government 39 1.6% 1.0% Transportation & Warehousing 33 1.4% 0.8% Farm Land 33 1.4% 0.8% Wholesale Trade 28 1.2% 0.7% Agriculture 23 1.0% 0.6% Other 78 3.3% 2.0% Total $2,364 100.0% 60.1% Diversified & Granular Loan Portfolio

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 1% 2% 2% 3% 3% 5% 6% 6% 7% 7% 10% Farm Land Mini Storage Lessors - Residential 1-4 All Others Medical Office Warehouse/ Industrial Retail Lessors Student Housing Motel Office (except medical) Lessors - Residential Multi Note: Data as of 6/30/22 1% 1% 1% 1% 2% 2% 2% 2% 3% 4% 4% Transportation & Warehousing Construction Professional & Technical Services All Others Restaurants Leisure and Hospitality Manufacturing Retail Trade Individuals and Other Services Health Care, Edu. Social Assist. Real Estate Rental & Leasing 1% 1% 1% 1% 1% 1% 2% 2% 2% 3% 3% 4% 4% Transportation & Warehousing Professional & Technical Services Agriculture Restaurants Retail Trade All Others Government Real Estate Rental & Leasing Manufacturing Construction Health Care, Educational Social Assist. Individuals and Other Services Finance & Insurance 32 Non-Owner Occupied CRE – % of Total Commercial Loans Owner Occupied CRE – % of Total Commercial Loans 52% of Total Commercial Loans $1.2 billion 23% of Total Commercial Loans $0.5 billion C&I Loans – % of Total Commercial Loans 25% of Total Commercial Loans $0.6 billion Low Levels of Concentrated Exposure Commercial Portfolio By Industry Type

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Commercial loans: • 63% fixed / 37% variable • 24% of variable rate commercial loans have floors, 25% of which are at their floor Retained mortgage loans: • 56% fixed / 44% variable • 93% of variable rate mortgage loans have floors, 14% of which are at their floor Consumer loans: • 67% fixed / 33% variable • 69% of variable rate consumer loans have floors, 31% of which are at their floor 33 Stable Loan Yields $4.0 $4.0 $4.0 $3.8 $3.6 $3.5 $3.6 $3.6 $3.8 4.54% 4.39% 4.72% 4.39% 4.43% 4.56% 4.52% 4.26% 4.45% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Yield on Loans (%) / Total Average Loans ($B) Total Average Loans Yield on Loans (%)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 11.1% 11.6% 12.0% 11.3% 12.0% 12.3% 11.2% 11.8% 12.2% 12.0% 12.1% 11.8% 2017 2018 2019 2020 2021 2Q22 9.9% 10.1% 10.5% 10.7% 9.1% 9.8% 9.7% 10.0% 10.2% 9.1% 8.9% 9.0% 2017 2018 2019 2020 2021 2Q22 12.9% 13.4% 14.0% 14.9% 15.7% 15.8% 13.1% 13.5% 13.6% 14.3% 14.2% 14.0% 2017 2018 2019 2020 2021 2Q22 Source: S&P Global Market Intelligence. Note: Company closed the acquisition of Salin Bancshares, Inc. in March 2019. 34 TCE / TA (%) Leverage Ratio (%) Total RBC Ratio (%) 4.0% Adequate + Buffer 7.0% KBW Regional Bank Index Median - MRQ Robust Capital Foundation 10.5% HBNC Ratio 8.5% 8.8% 9.3% 9.1% 7.6% 6.5% 9.1% 9.2% 9.6% 8.6% 8.3% 7.5% 2017 2018 2019 2020 2021 2Q22 CET1 Ratio (%)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 35 (1) Footnote Index included in Appendix (see slide 54 for non-GAAP reconciliation) (2) As calculated by S&P Global Market Intelligence. Historical Financials ($M except per share data) 2016 2017 2018 2019 2020 2021 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 Balance Sheet: Total Assets $3,141 $3,964 $4,247 $5,247 $5,887 $7,375 $6,109 $7,534 $7,375 $7,420 $7,641 Gross Loans $2,144 $2,838 $3,014 $3,641 $3,881 $3,657 $3,527 $3,665 $3,657 $3,715 $3,941 Deposits $2,471 $2,881 $3,139 $3,931 $4,531 $5,803 $4,782 $5,980 $5,803 $5,851 $5,846 Tangible Common Equity $255 $325 $362 $478 $517 $548 $538 $525 $548 $503 $484 Profitability: Net Income $23.9 $33.1 $53.1 $66.5 $68.5 $87.1 $22.2 $23.1 $21.4 $23.6 $24.9 Return on Average Assets 0.81% 0.97% 1.31% 1.35% 1.22% 1.34% 1.45% 1.41% 1.14% 1.31% 1.33% Return on Average Equity 7.9% 8.7% 11.2% 11.0% 10.3% 12.2% 12.6% 12.6% 11.8% 13.3% 14.7% Net Interest Margin 3.29% 3.75% 3.71% 3.69% 3.44% 3.13% 3.14% 3.17% 2.97% 2.99% 3.19% Efficiency Ratio(1) 71.5% 65.3% 60.7% 59.9% 57.0% 58.1% 57.7% 54.9% 62.7% 58.7% 55.6% Asset Quality (2) : NPAs & 90+ PD / Assets 0.44% 0.44% 0.41% 0.47% 0.49% 0.00% 0.39% 0.43% 0.31% 0.30% 0.28% NPAs & 90+ PD / Loans + OREO 0.65% 0.61% 0.57% 0.68% 0.74% 0.00% 0.67% 0.88% 0.62% 0.61% 0.55% Reserves / Total Loans 0.69% 0.58% 0.59% 0.49% 1.47% 1.51% 1.58% 1.55% 1.51% 1.41% 1.33% NCOs / Avg. Loans 0.08% 0.04% 0.05% 0.06% 0.05% 0.05% 0.00% 0.00% 0.04% 0.00% 0.01% Bancorp Capital Ratios: TCE Ratio 8.3% 8.5% 8.8% 9.4% 9.1% 7.6% 9.1% 7.1% 7.6% 6.9% 6.5% Leverage Ratio 10.4% 9.9% 10.1% 10.5% 10.7% 9.2% 10.8% 10.0% 9.2% 9.7% 9.8% Tier 1 Capital Ratio 13.2% 12.4% 12.8% 13.5% 14.0% 14.1% 15.4% 14.3% 14.1% 14.1% 14.8% Total Capital Ratio 13.9% 12.9% 13.4% 14.0% 14.9% 15.4% 16.7% 15.3% 15.4% 15.2% 15.8% Year Ended December 31, Quarter Ended,

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 36 Leader In Our Core Markets Source: S&P Global Market Intelligence. Deposit data as of 6/30/21, estimated pro forma for recent or pending transactions per S&P Global Market Intelligence MSA HBNC Rank HBNC Branches HBNC Market Share Deposits in Market ($M) Michigan City-La Porte, IN 1 9 60.0% $1,341 Indianapolis-Carmel-Anderson, IN 17 8 0.9% 687 Chicago-Naperville-Elgin, IL-IN-WI 52 10 0.1% 609 Lafayette-West Lafayette, IN 4 6 7.4% 330 Lansing-East Lansing, MI 12 4 2.9% 288 Niles, MI 4 5 13.1% 272 Midland, MI 2 2 19.1% 246 Cadillac, MI 2 3 31.3% 225 Detroit-Warren-Dearborn, MI 28 1 0.1% 177 Logansport, IN 3 1 18.2% 161 Grand Rapids-Kentwood, MI 20 2 0.5% 135 Auburn, IN 3 2 15.1% 129 Columbus, IN 5 2 6.1% 110 Warsaw, IN 5 3 5.3% 100 Big Rapids, MI 4 1 15.0% 96 Kalamazoo-Portage, MI 9 1 2.1% 93 Fort Wayne, IN 15 3 1.0% 91 Marion, IN 6 1 6.8% 64 Sturgis, MI 5 1 6.4% 63 Kokomo, IN 7 1 3.2% 50 Kendallville, IN 5 1 5.7% 44 South Bend-Mishawaka, IN-MI 13 1 0.7% 38 Saginaw, MI 12 1 0.8% 21 Elkhart-Goshen, IN 14 1 0.3% 15 Total Franchise 80 $5,838

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 37 Slide 4 • Pre-tax, pre-provision income excludes income tax expense and credit loss expense. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Return on average tangible equity excludes average intangible assets from average equity. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Adjusted net interest income and adjusted net interest margin excludes prepayment penalties on borrowings and acquisition-related purchase accounting adjustments. Adjusted cost of core funds includes average balances of non-interest bearing deposits and excludes prepayment penalties on borrowings. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 5 • Return on average tangible equity excludes average intangible assets from average equity. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 15 • Adjusted net income and adjusted diluted EPS excludes one-time acquisition expenses, credit loss expense on acquired loans, gain on sale of ESOP trustee accounts, Department of Labor (“DOL”) ESOP settlement expenses, (gain)/loss on sale of securities, prepayment penalties on borrowings, net of tax and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non- GAAP amounts to their GAAP counterparts.) • Pre-tax, pre-provision income excludes income tax expense and credit loss expense. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Adjusted net interest income and adjusted net interest margin exclude acquisition-related purchase accounting adjustments and prepayment penalties on borrowings. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) • Adjusted ROATE and Adjusted pre-tax, pre-provision ROACE exclude one-time acquisition expenses, credit loss expense on acquired loans, gain on sale of ESOP trustee accounts, DOL ESOP settlement expenses, (gain)/loss on sale of securities, prepayment penalties on borrowings, net of tax and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Footnote Index

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 38 Slide 17 • Adjusted net interest income and adjusted net interest margin excludes prepayment penalties on borrowings and acquisition-related purchase accounting adjustments. Adjusted cost of core funds includes average balances of non-interest bearing deposits and excludes prepayment penalties on borrowings. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 20 • Average cost of average total deposits includes average balances of non-interest bearing deposits. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slide 21 • Adjusted non-interest expense excludes one-time acquisition expenses and DOL ESOP settlement expenses. Adjusted efficiency ratio excludes one-time acquisition expenses, gain on sale of ESOP trustee accounts, DOL ESOP settlement expense, (gain)/loss on sale of securities and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.) Slides 39-57 Use of Non-GAAP Financial Measures • Certain information set forth in the presentation materials refers to financial measures determined by methods other than in accordance with GAAP. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business without giving effect to purchase accounting impacts, one-time acquisition and other non-recurring costs and non-core items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. Footnote Index

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 39 Footnote Index June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Net income as reported 24,859$ 23,563$ 21,425$ 23,071$ 22,173$ Acquisition expenses - - 884 799 242 Tax effect - - (184) (166) (51) Net income excluding acquisition expenses 24,859 23,563 22,125 23,704 22,364 Credit loss expense acquired loans - - - 2,034 - Tax effect - - - (427) - Net income excluding credit loss expense acquired loans 24,859 23,563 22,125 25,311 22,364 Gain on sale of ESOP trustee accounts - - - (2,329) - Tax effect - - - 489 - Net income excluding gain on sale of ESOP business line 24,859 23,563 22,125 23,471 22,364 ESOP settlement expense - - 1,900 - - Tax effect - - (315) - - Net income excluding ESOP settlement expense 24,859 23,563 23,710 23,471 22,364 (Gain)/loss on sale of investment securities - - - - - Tax effect - - - - - Net income excluding (gain)/loss on sale of investment securities 24,859 23,563 23,710 23,471 22,364 Death benefit on bank owned life insurance ("BOLI") (644) - - (517) (266) Net income excluding death benefit on BOLI 24,215 23,563 23,710 22,954 22,098 Prepayment penalties on borrowings - - - - 125 Tax effect - - - - (26) Net income excluding prepayment penalties on borrowings 24,215 23,563 23,710 22,954 22,197 Adjusted net income 24,215$ 23,563$ 23,710$ 22,954$ 22,197$ Three Months Ended Non-GAAP Reconciliation of Net Income (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 40 Footnote Index June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Diluted EPS as reported 0.57$ 0.54$ 0.49$ 0.52$ 0.50$ Acquisition expenses - - 0.02 0.02 0.01 Tax effect - - - - - Diluted EPS excluding acquisition expenses 0.57 0.54 0.51 0.54 0.51 Credit loss expense acquired loans - - - 0.05 - Tax effect - - - (0.01) - Diluted EPS excluding credit loss expense acquired loans 0.57 0.54 0.51 0.58 0.51 Gain on sale of ESOP trustee accounts - - - (0.05) - Tax effect - - - 0.01 - Diluted EPS excluding gain on sale of ESOP business line 0.57 0.54 0.51 0.54 0.51 ESOP settlement expense - - 0.04 - - Tax effect - - (0.01) - - Diluted EPS excluding ESOP settlement expense 0.57 0.54 0.54 0.54 0.51 (Gain)/loss on sale of investment securities - - - - - Tax effect - - - - - Diluted EPS excluding (gain)/loss on sale of investment securities 0.57 0.54 0.54 0.54 0.51 Death benefit on bank owned life insurance ("BOLI") (0.01) - - (0.02) (0.01) Diluted EPS excluding death benefit on BOLI 0.56 0.54 0.54 0.52 0.50 Prepayment penalties on borrowings - - - - - Tax effect - - - - - Diluted EPS excluding prepayment penalties on borrowings 0.56 0.54 0.54 0.52 0.50 Adjusted diluted EPS 0.56$ 0.54$ 0.54$ 0.52$ 0.50$ 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 June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Average assets 7,476,238$ 7,319,675$ 7,461,343$ 6,507,673$ 6,142,507$ Return on average assets ("ROAA") as reported 1.33% 1.31% 1.14% 1.41% 1.45% Acquisition expenses - - 0.05 0.05 0.02 Tax effect - - (0.01) (0.01) - ROAA excluding acquisition expenses 1.33 1.31 1.18 1.45 1.47 Credit loss expense acquired loans - - - 0.12 - Tax effect - - - (0.03) - ROAA excluding credit loss expense acquired loans 1.33 1.31 1.18 1.54 1.47 Gain on sale of ESOP trustee accounts - - - (0.14) - Tax effect - - - 0.03 - ROAA excluding gain on sale of ESOP business line 1.33 1.31 1.18 1.43 1.47 ESOP settlement expense - - 0.10 - - Tax effect - - (0.02) - - ROAA excluding ESOP settlement expense 1.33 1.31 1.26 1.43 1.47 (Gain)/loss on sale of investment securities - - - - - Tax effect - - - - - ROAA excluding (gain)/loss on sale of investment securities 1.33 1.31 1.26 1.43 1.47 Death benefit on bank owned life insurance ("BOLI") (0.03) - - (0.03) (0.02) ROAA excluding death benefit on BOLI 1.30 1.31 1.26 1.40 1.45 Prepayment penalty on borrowings - - - - 0.01 Tax effect - - - - - ROAA excluding prepayment penalties on borrowings 1.30 1.31 1.26 1.40 1.46 Adjusted ROAA 1.30% 1.31% 1.26% 1.40% 1.46% Three Months Ended Non-GAAP Reconciliation of Return on Average Assets (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 42 Footnote Index June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Average common equity 677,299$ 716,341$ 719,643$ 724,412$ 706,652$ Return on average common equity ("ROACE") as reported 14.72% 13.34% 11.81% 12.64% 12.59% Acquisition expenses - - 0.49 0.44 0.14 Tax effect - - (0.10) (0.09) (0.03) ROACE excluding acquisition expenses 14.72 13.34 12.20 12.99 12.70 Credit loss expense acquired loans - - - 1.11 - Tax effect - - - (0.23) - ROACE excluding credit loss expense acquired loans 14.72 13.34 12.20 13.87 12.70 Gain on sale of ESOP trustee accounts - - - (1.28) - Tax effect - - - 0.27 - ROACE excluding gain on sale of ESOP business line 14.72 13.34 12.20 12.86 12.70 ESOP settlement expense - - 1.05 - - Tax effect - - (0.17) - - ROACE excluding ESOP settlement expense 14.72 13.34 13.08 12.86 12.70 (Gain)/loss on sale of investment securities - - - - - Tax effect - - - - - ROACE excluding (gain)/loss on sale of investment securities 14.72 13.34 13.08 12.86 12.70 Death benefit on bank owned life insurance ("BOLI") (0.38) - - (0.28) (0.15) ROACE excluding death benefit on BOLI 14.34 13.34 13.08 12.58 12.55 Prepayment penalty on borrowings - - - - 0.07 Tax effect - - - - (0.01) ROACE excluding prepayment penalties on borrowings 14.34 13.34 13.08 12.58 12.61 Adjusted ROACE 14.34% 13.34% 13.08% 12.58% 12.61% Three Months Ended Non-GAAP Reconciliation of Return on Average Common Equity (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 43 Footnote Index June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Average common equity 677,299$ 716,341$ 719,643$ 724,412$ 706,652$ Less: Average intangible assets 175,321 176,356 179,594 174,920 173,905 Average tangible equity 501,978$ 539,985$ 540,049$ 549,492$ 532,747$ Return on average tangible equity ("ROATE") as reported 19.86% 17.70% 15.74% 16.66% 16.69% Acquisition expenses - - 0.65 0.58 0.18 Tax effect - - (0.14) (0.12) (0.04) ROATE excluding acquisition expenses 19.86 17.70 16.25 17.12 16.83 Credit loss expense acquired loans - - - 1.47 - Tax effect - - - (0.31) - ROATE excluding credit loss expense acquired loans 19.86 17.70 16.25 18.28 16.83 Gain on sale of ESOP trustee accounts - - - (1.68) - Tax effect - - - 0.35 - ROATE excluding gain on sale of ESOP business line 19.86 17.70 16.25 16.95 16.83 ESOP settlement expense - - 1.40 - - Tax effect - - (0.23) - - ROATE excluding ESOP settlement expense 19.86 17.70 17.42 16.95 16.83 (Gain)/loss on sale of investment securities - - - - - Tax effect - - - - - ROATE excluding (gain)/loss on sale of investment securities 19.86 17.70 17.42 16.95 16.83 Death benefit on bank owned life insurance ("BOLI") (0.51) - - (0.37) (0.20) ROATE excluding death benefit on BOLI 19.35 17.70 17.42 16.58 16.63 Prepayment penalty on borrowings - - - - 0.09 Tax effect - - - - (0.02) ROATE excluding prepayment penalties on borrowings 19.35 17.70 17.42 16.58 16.70 Adjusted ROATE 19.35% 17.70% 17.42% 16.58% 16.70% Non-GAAP Reconciliation of Return on Average Tangible Equity (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 44 Footnote Index June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Pre-tax income 28,834$ 27,102$ 25,505$ 27,127$ 25,943$ Provision for credit losses 240 (1,386) (2,071) 1,112 (1,492) Pre-tax, pre-provision net income 29,074$ 25,716$ 23,434$ 28,239$ 24,451$ Pre-tax, pre-provision net income 29,074$ 25,716$ 23,434$ 28,239$ 24,451$ Acquisition expenses - - 884 799 242 Gain on sale of ESOP trustee accounts - - - (2,329) - ESOP one-time expense - - 1,900 - - (Gain)/loss on sale of investment securities - - - - - Death benefit on bank owned life insurance (644) - - (517) (266) Prepayment penalties on borrowings - - - - 125 Adjusted pre-tax, pre-provision net income 28,430$ 25,716$ 26,218$ 26,192$ 24,552$ Average common equity 677,299$ 716,341$ 719,643$ 724,412$ 706,652$ Unadjusted pre-tax, pre-provision ROACE 17.22% 14.56% 12.92% 15.47% 13.88% Adjusted pre-tax, pre-provision ROACE 16.84% 14.56% 14.45% 14.34% 13.94% Non-GAAP Reconciliation of Pre-Tax, Pre-Provision Net Income (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 45 Footnote Index June 30, March 31, December 31, September 30, June 30, March 31, 2022 2022 2021 2021 2021 2021 Net interest income as reported 53,008$ 48,171$ 49,976$ 46,544$ 42,632$ 42,538$ Average interest earning assets 6,927,310 6,800,549 6,938,258 6,033,088 5,659,384 5,439,634 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 3.19% 2.99% 2.97% 3.17% 3.14% 3.29% Net interest income as reported 53,008$ 48,171$ 49,976$ 46,544$ 42,632$ 42,538$ Prepayment penalties on borrowings - - - - 125 - Acquisition-related purchase accounting adjustments ("PAU") (1,223) (916) (1,819) (875) (230) (1,579) Adjusted net interest income 51,785$ 47,255$ 48,157$ 45,669$ 42,527$ 40,959$ Adjusted net interest margin 3.12% 2.93% 2.86% 3.12% 3.13% 3.17% Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 46 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2020 2020 2020 2020 2019 2019 2019 2019 Net interest income as reported 43,622$ 43,397$ 42,996$ 40,925$ 41,519$ 43,463$ 41,529$ 34,280$ Average interest earning assets 5,365,888 5,251,611 5,112,636 4,746,202 4,748,217 4,623,985 4,566,674 3,929,296 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 3.34% 3.39% 3.47% 3.56% 3.58% 3.82% 3.73% 3.62% Net interest income as reported 43,622$ 43,397$ 42,996$ 40,925$ 41,519$ 43,463$ 41,529$ 34,280$ Prepayment penalties on borrowings 3,804 - - - - - - - Acquisition-related purchase accounting adjustments ("PAU") (2,461) (1,488) (1,553) (1,434) (1,042) (1,739) (1,299) (1,510) Adjusted net interest income 44,965$ 41,909$ 41,443$ 39,491$ 40,477$ 41,724$ 40,230$ 32,770$ Adjusted net interest margin 3.44% 3.27% 3.35% 3.44% 3.49% 3.67% 3.61% 3.46% Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 47 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2018 2018 2018 2018 2017 2017 2017 2017 Net interest income as reported 33,836$ 33,772$ 33,550$ 33,411$ 31,455$ 27,879$ 27,198$ 25,568$ Average interest earning assets 3,808,822 3,717,139 3,638,801 3,580,143 3,471,169 3,078,611 2,943,627 2,797,429 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 3.60% 3.67% 3.78% 3.81% 3.71% 3.71% 3.84% 3.80% Net interest income as reported 33,836$ 33,772$ 33,550$ 33,411$ 31,455$ 27,879$ 27,198$ 25,568$ Prepayment penalties on borrowings - - - - - - - - Acquisition-related purchase accounting adjustments ("PAU") (1,629) (789) (1,634) (2,037) (868) (661) (939) (1,016) Adjusted net interest income 32,207$ 32,983$ 31,916$ 31,374$ 30,587$ 27,218$ 26,259$ 24,552$ Adjusted net interest margin 3.43% 3.59% 3.60% 3.58% 3.61% 3.63% 3.71% 3.66% Three Months Ended Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 48 Footnote Index December 31, September 30, June 30, March 31, 2016 2016 2016 2016 Net interest income as reported 20,939$ 24,410$ 20,869$ 19,774$ Average interest earning assets 2,932,145 2,957,944 2,471,354 2,367,250 Net interest income as a percentage of average interest earning assets ("Net Interest Margin") 2.92% 3.37% 3.48% 3.45% Net interest income as reported 20,939$ 24,410$ 20,869$ 19,774$ Prepayment penalties on borrowings 4,839 - - - Acquisition-related purchase accounting adjustments ("PAU") (900) (459) (397) (547) Adjusted net interest income 24,878$ 23,951$ 20,472$ 19,227$ Adjusted net interest margin 3.45% 3.31% 3.42% 3.36% Three Months Ended Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 49 Footnote Index June 30, March 31, December 31, September 30, June 30, March 31, 2022 2022 2021 2021 2021 2021 Total interest expense as reported 4,564$ 3,911$ 4,142$ 4,324$ 4,788$ 5,051$ Average interest bearing liabilities 5,411,381 5,237,779 5,322,968 4,545,332 4,249,932 4,116,568 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 0.34% 0.30% 0.31% 0.38% 0.45% 0.50% Total interest expense as reported 4,564$ 3,911$ 4,142$ 4,324$ 4,788$ 5,051$ Prepayment penalties on borrowings - - - - (125) - Adjusted interest expense 4,564$ 3,911$ 4,142$ 4,324$ 4,663$ 5,051$ Average interest bearing liablities 5,411,381 5,237,779 5,322,968 4,545,332 4,249,932 4,116,568 Average non-interest bearing deposits 1,335,779 1,322,781 1,366,621 1,180,890 1,139,068 1,063,268 Average core funding 6,747,160$ 6,560,560$ 6,689,589$ 5,726,222$ 5,389,000$ 5,179,836$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 0.27% 0.24% 0.25% 0.30% 0.35% 0.40% Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 50 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2020 2020 2020 2020 2019 2019 2019 2019 Total interest expense as reported 9,612$ 6,749$ 7,348$ 10,729$ 11,879$ 12,248$ 12,321$ 11,093$ Average interest bearing liabilities 4,077,223 4,027,057 3,975,297 3,814,785 3,794,943 3,601,144 3,570,713 3,131,276 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 0.94% 0.67% 0.74% 1.13% 1.24% 1.35% 1.38% 1.44% Total interest expense as reported 9,612$ 6,749$ 7,348$ 10,729$ 11,879$ 12,248$ 12,321$ 11,093$ Prepayment penalties on borrowings (3,804) - - - - - - - Adjusted interest expense 5,808$ 6,749$ 7,348$ 10,729$ 11,879$ 12,248$ 12,321$ 11,093$ Average interest bearing liablities 4,077,223 4,027,057 3,975,297 3,814,785 3,794,943 3,601,144 3,570,713 3,131,276 Average non-interest bearing deposits 1,037,232 996,427 924,890 717,257 747,513 818,164 818,872 643,601 Average core funding 5,114,455$ 5,023,484$ 4,900,187$ 4,532,042$ 4,542,456$ 4,419,308$ 4,389,585$ 3,774,877$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 0.45% 0.53% 0.60% 0.95% 1.04% 1.10% 1.13% 1.19% Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 51 Footnote Index December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2018 2018 2018 2018 2017 2017 2017 2017 Total interest expense as reported 9,894$ 8,499$ 7,191$ 6,015$ 5,319$ 4,191$ 3,607$ 3,266$ Average interest bearing liabilities 3,021,310 2,971,074 2,929,913 2,869,372 2,766,948 2,459,262 2,375,827 2,246,550 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 1.30% 1.13% 0.98% 0.85% 0.76% 0.68% 0.61% 0.59% Total interest expense as reported 9,894$ 8,499$ 7,191$ 6,015$ 5,319$ 4,191$ 3,607$ 3,266$ Prepayment penalties on borrowings - - - - - - - - Adjusted interest expense 9,894$ 8,499$ 7,191$ 6,015$ 5,319$ 4,191$ 3,607$ 3,266$ Average interest bearing liablities 3,021,310 2,971,074 2,929,913 2,869,372 2,766,948 2,459,262 2,375,827 2,246,550 Average non-interest bearing deposits 656,114 640,983 605,188 595,644 603,733 540,109 499,446 491,154 Average core funding 3,677,424$ 3,612,057$ 3,535,101$ 3,465,016$ 3,370,681$ 2,999,371$ 2,875,273$ 2,737,704$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 1.07% 0.93% 0.82% 0.70% 0.63% 0.55% 0.50% 0.48% Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 52 Footnote Index December 31, September 30, June 30, March 31, 2016 2016 2016 2016 Total interest expense as reported 8,450$ 4,552$ 3,781$ 3,754$ Average interest bearing liabilities 2,369,810 2,443,986 2,058,463 1,974,325 Annualized total interest expense as a percentage of average interest bearing liabilities ("Cost of Interest Bearing Liabilities") 1.42% 0.74% 0.74% 0.76% Total interest expense as reported 8,450$ 4,552$ 3,781$ 3,754$ Prepayment penalties on borrowings (4,839) - - - Adjusted interest expense 3,611$ 4,552$ 3,781$ 3,754$ Average interest bearing liablities 2,369,810 2,443,986 2,058,463 1,974,325 Average non-interest bearing deposits 504,274 462,253 364,822 339,141 Average core funding 2,874,084$ 2,906,239$ 2,423,285$ 2,313,466$ Annualzied adjusted interest expense as a percentage of average core funding ("Adjusted Cost of Core Funds") 0.50% 0.62% 0.63% 0.66% Three Months Ended Non-GAAP Reconciliation of Cost of Interest Bearing Liabilities (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 53 Footnote Index June 30, March 31, 2022 2022 Total deposit interest expense as reported 1,677$ 1,496$ Average interest bearing deposits 4,540,959 4,478,621 Annualized total deposit interest expense as a percentage of average interest bearing deposits ("Cost of Interest Bearing Deposits") 0.15% 0.14% Average interest bearing deposits 4,540,959 4,478,621 Average non-interest bearing deposits 1,335,779 1,322,781 Average total deposits 5,876,738$ 5,801,402$ Annualzied deposit interest expense as a percentage of average total deposits ("Cost of Total Deposits") 0.11% 0.10% Three Months Ended Non-GAAP Reconciliation of Cost of Deposits (Dollars in Thousands, Unaudited)

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 54 Footnote Index June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Non-GAAP Calculation of Efficiency Ratio Non-interest expense as reported 36,368$ 36,610$ 39,370$ 34,349$ 33,388$ Net interest income as reported 53,008 48,171 49,976 46,544 42,632 Non-interest income as reported 12,434 14,155 12,828 16,044 15,207 Non-interest expense/ (Net interest income + Non-interest income) ("Efficiency Ratio") 55.57% 58.74% 62.69% 54.88% 57.73% Non-GAAP Reconciliation of Adjusted Efficiency Ratio Non-interest expense as reported 36,368$ 36,610$ 39,370$ 34,349$ 33,388$ Acquisition expenses - - (884) (799) (242) ESOP settlement expense - - (1,900) - - Non-interest expense excluding merger expenses 36,368 36,610 36,586 33,550 33,146 Net interest income as reported 53,008 48,171 49,976 46,544 42,632 Prepayment penalties on borrowings - - - - 125 Net interest income excluding prepayment penalties on borrowings 53,008 48,171 49,976 46,544 42,757 Non-interest income as reported 12,434 14,155 12,828 16,044 15,207 Gain on sale of ESOP trustee accounts - - - (2,329) - (Gain)/loss on sale of investment securities - - - - - Death benefit on bank owned life insurance ("BOLI") (644) - - (517) (266) Non-interest income excluding (gain)/loss on sale of investment securities and death benefit on BOLI 11,790$ 14,155$ 12,828$ 13,198$ 14,941$ Adjusted efficiency ratio 56.13% 58.74% 58.25% 56.16% 57.45% Non-GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio (Dollars in Thousands, Unaudited) Three Months Ended

E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® 55 Footnote Index Actual Acquisition & Non- Recurring Expenses Adjusted Actual Acquisition & Non- Recurring Expenses Adjusted Non-interest Expense Salaries and employee benefits 19,957$ -$ 19,957$ 19,735$ -$ 19,735$ Net occupancy expenses 3,190 - 3,190 3,561 - 3,561 Data processing 2,607 - 2,607 2,537 - 2,537 Professional fees 283 - 283 314 - 314 Outside services and consultants 2,485 - 2,485 2,525 - 2,525 Loan expense 2,497 - 2,497 2,545 - 2,545 FDIC insurance expense 775 - 775 725 - 725 Other losses 362 - 362 168 - 168 Other expense 4,212 - 4,212 4,500 - 4,500 Total non-interest expense 36,368$ -$ 36,368$ 36,610$ -$ 36,610$ Annualized non-interest expense to average assets 1.95% 1.95% 2.03% 2.03% 2022 Non-GAAP Reconciliation of Non-Interest Expense (Dollars in Thousands, Unaudited) Three Months Ended June 30, March 31, 2022

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

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

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