0000706129false00007061292024-04-242024-04-24

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): October 23, 2024

HORIZON BANCORP, INC.
(Exact name of registrant as specified in its charter)
Indiana000-1079235-1562417
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
515 Franklin Street
Michigan City, IN 46360
(Address of principal executive offices, including zip code)

(219) 879-0211
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

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

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common stock, no par valueHBNCThe NASDAQ Stock Market, LLC

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

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


1


Item 2.02 Results of Operations and Financial Condition

On October 23, 2024, Horizon Bancorp, Inc. (the “Company”) issued a press release announcing earnings and other financial results for the three–month period ended September 30, 2024. 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, October 24, 2024 at 7:30 a.m. Central Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Company may use the Investor Presentation, possibly with modifications, in presentations to current and potential investors, analysts, lenders, business partners, acquisition candidates, customers, employees and others with an interest in the Company and its business.

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

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

Item 9.01 Financial Statements and Exhibits
(d) Exhibits
EXHIBIT INDEX
Exhibit No.DescriptionLocation
99.1Attached
99.2Attached
104Cover Page Interactive Data File (Embedded within the Inline XBRL document)Within the Inline XBRL document



2


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:October 23, 2024HORIZON BANCORP, INC.
By:/s/ John R. Stewart, CFA
John R. Stewart, CFA
Executive Vice President & Chief Financial Officer



3

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
horizonbancorpinc876_sm-10a.jpg
Contact:John R. Stewart, CFA
EVP, Chief Financial Officer
Phone:(219) 814–5833
Fax:
(219) 874–9280
Date:October 23, 2024

FOR IMMEDIATE RELEASE

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results, Including EPS of $0.41 and Continued Profitability Improvement, as well as Accretive Balance Sheet Initiatives

Michigan City, Indiana, October 23, 2024 (GLOBE NEWSWIRE) – (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2024.

Net income for the three months ended September 30, 2024 was $18.2 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.32, for the second quarter of 2024 and compared to net income of $16.2 million, or $0.37 per diluted share, for the third quarter of 2023.

Net income for the nine months ended September 30, 2024 was $46.3 million, or $1.05 per diluted share, compared to net income of $53.2 million, or $1.21, for the nine months ended September 30, 2023.

Third Quarter 2024 Highlights

•Net interest income increased for the fourth consecutive quarter to $46.9 million, compared to $45.3 million in the linked quarter of 2024. Net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the fourth consecutive quarter to 2.66%, compared to 2.64% in the linked quarter of 2024.

•Total loans held for investment ("HFI") were $4.8 billion at September 30, 2024, relatively unchanged from June 30, 2024 balances. However, consistent with the Company's stated growth strategy, the commercial portfolio showed continued organic growth momentum during the quarter, which was offset with planned run-off of lower-yielding indirect auto loans in the consumer loan portfolio.

•Positive deposit growth of 1.7% during the quarter, to $5.7 billion at period end. The quarter was highlighted by stable non-interest bearing deposit balances and growth in core relationship consumer and commercial portfolios.

•Credit quality remains strong, with annualized net charge offs of 0.03% of average loans during the third quarter. Non-performing assets to total assets of 0.32% remains well within expected ranges, with no material change in the loss outlook. Provision for loan losses of $1.0 million reflects continued positive credit performance.







1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
1
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

“Horizon continues to execute well on its key strategic initiatives of consistently improving our operating performance through a more productive balance sheet, growth in non-interest income and continued disciplined in our operating model. As a result, we are optimistic on the positive momentum of the franchise through year-end 2024 and into 2025. During the quarter, our commercial team was able to deliver another quarter of quality loan growth, even coming off a strong end to the second quarter. The strength of Horizon's core deposit franchise showed solid performance, and our credit metrics remain well managed. These efforts led to a third consecutive quarter of sequential growth in pre-tax pre-provision income," President and Chief Executive Officer Thomas M. Prame said. "Importantly, we continue our efforts to optimize our business model, and are pleased to announce the repositioning of a portion of our securities portfolio and the intended sale of our mortgage warehouse business during the fourth quarter. These shareholder accretive actions are expected to yield sustainable improvement in the profitability of our business that will be evident in the fourth quarter, and positively impact Horizon's financial performance in 2025."

Accretive Fourth Quarter 2024 Strategic Actions

Horizon announced strategic actions taking place in the fourth quarter of 2024, which are designed to simplify its business, strengthen the balance sheet and improve long-term structural profitability. In October, the Company completed the repositioning of about $325 million of available-for-sale securities. Additionally, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale. Details on these actions, the use of proceeds, and the expected financial impact are available in the Company's third quarter 2024 investor presentation published at investor.horizonbank.com.
2
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Income statement:
Net interest income$46,910 $45,279 $43,288 $42,257 $42,090 
Credit loss expense1,044 2,369 805 1,274 263 
Non-interest income11,511 10,485 9,929 (20,449)11,830 
Non-interest expense39,272 37,522 37,107 39,330 36,168 
Income tax expense(75)1,733 1,314 6,419 1,284 
Net income$18,180 $14,140 $13,991 $(25,215)$16,205 
Per share data:
Basic earnings per share$0.42 $0.32 $0.32 $(0.58)$0.37 
Diluted earnings per share0.41 0.32 0.32 (0.58)0.37 
Cash dividends declared per common share0.16 0.16 0.16 0.16 0.16 
Book value per common share17.27 16.62 16.49 16.47 15.89 
Market value - high16.57 12.74 14.44 14.65 12.68 
Market value - low11.89 11.29 11.75 9.33 9.90 
Weighted average shares outstanding - Basic43,712,059 43,712,059 43,663,610 43,649,585 43,646,609 
Weighted average shares outstanding - Diluted44,112,321 43,987,187 43,874,036 43,649,585 43,796,069 
Common shares outstanding (end of period)43,712,059 43,712,059 43,726,380 43,652,063 43,648,501 
Key ratios:
Return on average assets0.92 %0.73 %0.72 %(1.27)%0.81 %
Return on average stockholders' equity9.80 7.83 7.76 (14.23)8.99 
Total equity to total assets9.52 9.18 9.18 9.06 8.71 
Total loans to deposit ratio83.92 85.70 82.78 78.01 76.52 
Allowance for credit losses to HFI loans1.10 1.08 1.09 1.13 1.14 
Annualized net charge-offs of average total loans(1)
0.03 0.05 0.04 0.07 0.07 
Efficiency ratio67.22 67.29 69.73 180.35 67.08 
Key metrics (Non-GAAP)(2) :
Net FTE interest margin2.66 %2.64 %2.50 %2.43 %2.41 %
Return on average tangible common equity12.65 10.18 10.11 (18.76)11.79 
Tangible common equity to tangible assets7.58 7.22 7.20 7.08 6.72 
Tangible book value per common share$13.46 $12.80 $12.65 $12.60 $12.00 
(1) Average total loans includes loans held for investment and held for sale.
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
3
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Income Statement Highlights

Net Interest Income

Net interest income was $46.9 million in the third quarter of 2024, compared to $45.3 million in the second quarter of 2024, driven by net growth in average interest earning assets of $117.5 million and continued net FTE interest margin expansion during the quarter. Horizon’s net FTE interest margin1 was 2.66% for the third quarter of 2024, compared to 2.64% for the second quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward lower-cost deposit balances. Interest accretion from the fair value of acquired loans did not contribute significantly to the third quarter net interest income, or net FTE interest margin.

Provision for Credit Losses

During the third quarter of 2024, the Company recorded a provision for credit losses of $1.0 million. This compares to a provision for credit losses of $2.4 million during the second quarter of 2024, and $0.3 million during the third quarter of 2023. The decrease in the provision for credit losses during the third quarter of 2024 when compared with the second quarter of 2024 was primarily attributable to less total loan growth in the current quarter relative to the prior quarter.

For the third quarter of 2024, the allowance for credit losses included net charge-offs of $0.4 million, or an annualized 0.03% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2024, and net charge-offs of $0.7 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2023.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.10% at September 30, 2024, compared to 1.08% at June 30, 2024 and 1.14% at September 30, 2023.

Non-Interest Income

For the Quarter EndedSeptember 30,June 30,March 31,December 31,September 30,
(Dollars in Thousands)20242024202420232023
Non-interest Income
Service charges on deposit accounts$3,320 $3,130 $3,214 $3,092 $3,086 
Wire transfer fees123 113 101 103 120 
Interchange fees3,511 3,826 3,109 3,224 3,186 
Fiduciary activities1,394 1,372 1,315 1,352 1,206 
Gains (losses) on sale of investment securities— — — (31,572)— 
Gain on sale of mortgage loans1,622 896 626 951 1,582 
Mortgage servicing income net of impairment412 450 439 724 631 
Increase in cash value of bank owned life insurance349 318 298 658 1,055 
Other income780 380 827 1,019 964 
Total non-interest income$11,511 $10,485 $9,929 $(20,449)$11,830 

Total non-interest income was $11.5 million in the third quarter of 2024, compared to $10.5 million in the second quarter of 2024, due primarily to higher realized gains on sale of mortgage loans and increased other income.





1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
4
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results


Non-Interest Expense

For the Quarter EndedSeptember 30,June 30,March 31,December 31,September 30,
(Dollars in Thousands)20242024202420232023
Non-interest Expense
Salaries and employee benefits$21,829 $20,583 $20,268 $21,877 $20,058 
Net occupancy expenses3,2073,1923,5463,2603,283
Data processing2,9772,5792,4642,9422,999
Professional fees676714607772707
Outside services and consultants3,6773,0583,3592,3942,316
Loan expense1,0341,0387191,3451,120
FDIC insurance expense1,2041,3151,3201,2001,300
Core deposit intangible amortization844844872903903
Other losses29751516508188
Other expense3,5273,6843,9364,1293,294
Total non-interest expense$39,272 $37,522 $37,107 $39,330 $36,168 

Total non-interest expense was $39.3 million in the third quarter of 2024, compared with $37.5 million in the second quarter of 2024. The increase in non-interest expense during the third quarter of 2024 was primarily driven by a $1.2 million increase in salaries and employee benefits expense, which is partially attributable to a legacy benefits program expense, and a $0.6 million increase in outside services and consultants expense related to strategic initiatives.

Income Taxes

Horizon's effective tax rate was -0.4% for the third quarter of 2024, as compared to 10.9% for the second quarter of 2024. The decrease in the effective tax rate during the third quarter was primarily due to an increase in net realizable tax credits for the current year, which reduced the Company's estimated annual effective tax rate.

Balance Sheet

Total assets increased by $14.9 million, or 0.2%, to $7.93 billion as of September 30, 2024, from $7.91 billion as of June 30, 2024. The increase in total assets is primarily due to increases in federal funds sold of $79.5 million, or 230.6%, to $113.9 million as of September 30, 2024, compared to $34.5 million as of June 30, 2024. The increase in federal funds sold during the period was partially offset by a decrease in other assets of $46.6 million, or 28.1%, to $119.0 million as of September 30, 2024, from $165.7 million as of June 30, 2024.

Total investment securities remained unchanged, at $2.4 billion as of September 30, 2024, compared to June 30, 2024, as the positive market impact to available for sale securities was offset by normal pay-downs and maturities. There were no purchases of investment securities during the third quarter of 2024.

Total loans HFI and loans held for sale were relatively consistent at $4.8 billion as of September 30, 2024 compared to $4.8 billion as of June 30, 2024, as growth in commercial loans of $9.5 million were offset by a decline in consumer loans of $43.3 million.

Total deposit balances increased by $96.9 million, or 1.7%, to $5.7 billion as of September 30, 2024 when compared to balances as of June 30, 2024. Non-interest bearing deposit balances were essentially unchanged during the quarter.

Total borrowings decreased by $86.4 million, or 7.0%, to $1.1 billion as of September 30, 2024, primarily related to the repayment of a portion of Federal Home Loan Bank advances, when compared to balances as of June 30, 2024.
5
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters:

For the Quarter EndedSeptember 30,June 30,March 31,December 31,
2024*20242024**2023**
Consolidated Capital Ratios
Total capital (to risk-weighted assets)13.52 %13.41 %13.75 %14.04 %
Tier 1 capital (to risk-weighted assets)11.70 %11.59 %11.89 %12.13 %
Common equity tier 1 capital (to risk-weighted assets)10.74 %10.63 %10.89 %11.11 %
Tier 1 capital (to average assets)9.01 %9.02 %8.91 %8.61 %
*Preliminary estimate - may be subject to change
** Prior periods were previously revised (see disclosure in Form 10-Q for the quarterly period ending June 30, 2024)

As of September 30, 2024, the ratio of total stockholders’ equity to total assets is 9.52%. Book value per common share was $17.27, increasing $0.65 during the third quarter of 2024.

Tangible common equity1 totaled $588.5 million at September 30, 2024, and the ratio of tangible common equity to tangible assets1 was 7.58% at September 30, 2024, up from 7.22% at June 30, 2024. Tangible book value, which excludes intangible assets from total equity, per common share1 was $13.46, increasing $0.66 during the third quarter of 2024.

Credit Quality

As of September 30, 2024, total non-accrual loans increased by $5.3 million, or 29.0%, from June 30, 2024, to 0.49% of total loans HFI. Total non-performing assets increased $5.1 million, or 25.0%, to $25.6 million, compared to $20.5 million as of June 30, 2024. The ratio of non-performing assets to total assets increased to 0.32% compared to 0.26% as of June 30, 2024.

As of September 30, 2024, net charge-offs decreased by $0.2 million to $0.4 million, compared to $0.6 million as of June 30, 2024 and remain just 0.03% annualized of average loans.



















1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
6
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Earnings Conference Call

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

Participants may access the live conference call on October 24, 2024 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through November 1, 2024. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 9847279.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential 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, as well as equipment financing solutions for customers regionally and nationally, 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.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, 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.

Forward Looking Statements

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

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing
7
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
8
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share Data, Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2024202420242023202320242023
Interest Income
Loans receivable$75,488 $71,880 $66,954 $65,583 $63,003 $214,322 $178,961 
Investment securities - taxable8,133 7,986 7,362 8,157 8,788 23,481 26,253 
Investment securities - tax-exempt6,310 6,377 6,451 6,767 7,002 19,138 21,617 
Other957 738 4,497 3,007 1,332 6,192 1,960 
Total interest income90,888 86,981 85,264 83,514 80,125 263,133 228,791 
Interest Expense
Deposits30,787 28,447 27,990 27,376 24,704 87,224 58,481 
Borrowed funds11,131 11,213 11,930 11,765 11,224 34,274 30,713 
Subordinated notes830 829 831 870 880 2,490 2,641 
Junior subordinated debentures issued to capital trusts1,230 1,213 1,225 1,246 1,227 3,668 3,469 
Total interest expense43,978 41,702 41,976 41,257 38,035 127,656 95,304 
Net Interest Income46,910 45,279 43,288 42,257 42,090 135,477 133,487 
Provision for loan losses1,044 2,369 805 1,274 263 4,218 1,185 
Net Interest Income after Provision for Loan Losses45,866 42,910 42,483 40,983 41,827 131,259 132,302 
Non-interest Income
Service charges on deposit accounts3,320 3,130 3,214 3,092 3,086 9,664 9,135 
Wire transfer fees123 113 101 103 120 337 345 
Interchange fees3,511 3,826 3,109 3,224 3,186 10,446 9,637 
Fiduciary activities1,394 1,372 1,315 1,352 1,206 4,081 3,728 
Gains (losses) on sale of investment securities— — — (31,572)— — (480)
Gain on sale of mortgage loans1,622 896 626 951 1,582 3,144 3,372 
Mortgage servicing income net of impairment412 450 439 724 631 1,301 1,984 
Increase in cash value of bank owned life insurance349 318 298 658 1,055 965 3,051 
Other income780 380 827 1,019 964 1,987 1,675 
Total non-interest income11,511 10,485 9,929 (20,449)11,830 31,925 32,447 
Non-interest Expense
Salaries and employee benefits21,829 20,583 20,268 21,877 20,058 62,680 58,932 
Net occupancy expenses3,207 3,192 3,546 3,260 3,283 9,945 10,095 
Data processing2,977 2,579 2,464 2,942 2,999 8,020 8,684 
Professional fees676 714 607 772 707 1,997 1,873 
Outside services and consultants3,677 3,058 3,359 2,394 2,316 10,094 7,548 
Loan expense1,034 1,038 719 1,345 1,120 2,791 3,635 
FDIC insurance expense1,204 1,315 1,320 1,200 1,300 3,839 2,680 
Core deposit intangible amortization844 844 872 903 903 2,560 2,709 
Other losses297 515 16 508 188 828 543 
Other expense3,527 3,684 3,936 4,129 3,294 11,147 10,255 
Total non-interest expense39,272 37,522 37,107 39,330 36,168 113,901 106,954 
Income /(Loss) Before Income Taxes18,105 15,873 15,305 (18,796)17,489 49,283 57,795 
Income tax expense(75)1,733 1,314 6,419 1,284 2,972 4,599 
Net Income /(Loss)$18,180 $14,140 $13,991 $(25,215)$16,205 $46,311 $53,196 
Basic Earnings /(Loss) Per Share$0.42 $0.32 $0.32 $(0.58)$0.37 $1.06 $1.22 
Diluted Earnings/(Loss) Per Share0.41 0.32 0.32 (0.58)0.37 1.05 1.21 


9
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Assets
Interest earning assets
Federal funds sold$113,912 $34,453 $161,704 $401,672 $71,576 
Interest earning deposits12,107 4,957 9,178 12,071 4,718 
Interest earning time deposits735 1,715 1,715 2,205 2,207 
Federal Home Loan Bank stock53,826 53,826 53,826 34,509 34,509 
Investment securities, available for sale541,170 527,054 535,319 547,251 865,168 
Investment securities, held to maturity1,888,379 1,904,281 1,925,725 1,945,638 1,966,483 
Loans held for sale2,069 2,440 922 1,418 2,828 
Gross loans held for investment (HFI)4,803,996 4,822,840 4,618,175 4,417,630 4,359,002 
Total Interest earning assets7,416,194 7,351,566 7,306,564 7,362,394 7,306,491 
Non-interest earning assets
Allowance for credit losses(52,881)(52,215)(50,387)(50,029)(49,699)
Cash108,815 106,691 100,206 112,772 98,843 
Cash value of life insurance37,115 36,773 36,455 36,157 149,212 
Other assets119,026 165,656 160,593 177,061 152,280 
Goodwill155,211 155,211 155,211 155,211 155,211 
Other intangible assets11,067 11,910 12,754 13,626 14,530 
Premises and equipment, net93,544 93,695 94,303 94,583 94,716 
Interest receivable39,366 43,240 40,008 38,710 37,850 
Total non-interest earning assets511,263 560,961 549,143 578,091 652,943 
Total assets$7,927,457 $7,912,527 $7,855,707 $7,940,485 $7,959,434 
Liabilities
Savings and money market deposits$3,420,827 $3,364,726 $3,350,673 $3,369,149 $3,322,788 
Time deposits1,220,653 1,178,389 1,136,121 1,179,739 1,250,606 
Borrowings1,142,744 1,229,165 1,219,812 1,217,020 1,214,016 
Repurchase agreements122,399 128,169 139,309 136,030 142,494 
Subordinated notes55,703 55,668 55,634 55,543 59,007 
Junior subordinated debentures issued to capital trusts57,423 57,369 57,315 57,258 57,201 
Total interest earning liabilities6,019,749 6,013,486 5,958,864 6,014,739 6,046,112 
Non-interest bearing deposits1,085,535 1,087,040 1,093,076 1,116,005 1,126,703 
Interest payable11,400 11,240 7,853 22,249 16,281 
Other liabilities55,951 74,096 74,664 68,680 76,969 
Total liabilities7,172,635 7,185,862 7,134,457 7,221,673 7,266,065 
Stockholders’ Equity
Preferred stock— — — — — 
Common stock— — — — — 
Additional paid-in capital358,453 357,673 356,599 356,400 355,478 
Retained earnings454,050 442,977 435,927 429,021 461,325 
Accumulated other comprehensive income (loss)(57,681)(73,985)(71,276)(66,609)(123,434)
Total stockholders’ equity754,822 726,665 721,250 718,812 693,369 
Total liabilities and stockholders’ equity$7,927,457 $7,912,527 $7,855,707 $7,940,485 $7,959,434 
10
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results


Loans and Deposits
(Dollars in Thousands, Unaudited)
September 30,June 30,March 31,December 31,September 30,% Change
20242024202420232023Q3'24 vs Q2'24Q3'24 vs Q3'23
Commercial:
Commercial real estate$2,105,459 $2,117,772 $1,984,723 $1,962,097 $1,916,056 (1)%10 %
Commercial & Industrial808,600 786,788 765,043 712,863 673,188 3 %20 %
Total commercial2,914,059 2,904,560 2,749,766 2,674,960 2,589,244 — %13 %
Residential Real estate801,356 797,956 782,071 681,136 675,399 — %19 %
Mortgage warehouse80,437 68,917 56,548 45,078 65,923 17 %22 %
Consumer1,008,144 1,051,407 1,029,790 1,016,456 1,028,436 (4)%(2)%
Total loans held for investment4,803,996 4,822,840 4,618,175 4,417,630 4,359,002 — %10 %
Loans held for sale2,069 2,440 922 1,418 2,828 (15)%(27)%
Total loans$4,806,065 $4,825,280 $4,619,097 $4,419,048 $4,361,830 — %10 %
Deposits:
Interest bearing deposits
Savings and money market deposits$3,420,827 $3,364,726 $3,350,673 $3,369,149 $3,322,788 2 %3 %
Time deposits1,220,653 1,178,389 1,136,121 1,179,739 1,250,606 4 %(2)%
Total Interest bearing deposits4,641,480 4,543,115 4,486,794 4,548,888 4,573,394 2 %1 %
Non-interest bearing deposits
Non-interest bearing deposits1,085,535 1,087,040 1,093,076 1,116,005 1,126,703 — %(4)%
Total deposits$5,727,015 $5,630,155 $5,579,870 $5,664,893 $5,700,097 2 %— %








11
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Average Balance Sheet
(Dollars in Thousands, Unaudited)
Three Months Ended
September 30, 2024June 30, 2024September 30, 2023
Average
Balance
Interest(4)
Average
Rate(4)
Average
Balance
Interest(4)
Average
Rate(4)
Average
Balance
Interest(4)
Average
Rate(4)
Assets
Interest earning assets
Federal funds sold$64,743 $860 5.28 %$47,805 $645 5.43 %$92,305 $1,247 5.36 %
Interest earning deposits8,781 97 4.39 %7,662 93 4.88 %8,018 85 4.21 %
Federal Home Loan Bank stock53,826 1,607 11.88 %53,827 1,521 11.36 %34,509 618 7.10 %
Investment securities - taxable (1)
1,301,830 6,526 1.99 %1,309,305 6,465 1.99 %1,650,081 8,170 1.96 %
Investment securities - non-taxable (1)
1,125,295 7,987 2.82 %1,132,065 8,072 2.87 %1,220,998 8,863 2.88 %
  Total investment securities2,427,125 14,513 2.38 %2,441,370 14,537 2.39 %2,871,079 17,033 2.35 %
Loans receivable (2) (3)
4,775,788 75,828 6.32 %4,662,124 72,208 6.23 %4,280,700 63,254 5.89 %
Total interest earning assets$7,330,263 $92,905 5.04 %$7,212,788 $89,004 4.96 %$7,286,611 $82,237 4.59 %
Non-interest earning assets
Cash and due from banks$108,609 $108,319 $100,331 
Allowance for credit losses(52,111)(50,334)(49,705)
Other assets471,259 508,555 587,514 
Total average assets$7,858,020 $7,779,328 $7,924,751 
Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing deposits$3,386,177 $18,185 2.14 %$3,334,490 $16,814 2.03 %$3,267,594 $12,661 1.54 %
Time deposits1,189,148 12,602 4.22 %1,134,590 11,633 4.12 %1,271,104 12,043 3.76 %
Borrowings1,149,952 10,221 3.54 %1,184,172 10,278 3.49 %1,180,452 10,399 3.50 %
Repurchase agreements123,524 910 2.93 %125,144 935 3.00 %136,784 825 2.39 %
Subordinated notes55,681 830 5.93 %55,647 829 5.99 %58,983 880 5.92 %
Junior subordinated debentures issued to capital trusts57,389 1,230 8.53 %57,335 1,213 8.51 %57,166 1,227 8.52 %
Total interest bearing liabilities$5,961,871 $43,978 2.93 %$5,891,378 $41,702 2.85 %$5,972,083 $38,035 2.53 %
Non-interest bearing liabilities
Demand deposits$1,083,214 $1,080,676 $1,159,241 
Accrued interest payable and other liabilities74,563 80,942 77,942 
Stockholders' equity738,372 726,332 715,485 
Total average liabilities and stockholders' equity$7,858,020 $7,779,328 $7,924,751 
Net FTE interest income (non-GAAP) (5)
$48,927 $47,302 $44,202 
Less FTE adjustments (4)
2,017 2,023 2,112 
Net Interest Income$46,910 $45,279 $42,090 
Net FTE interest margin (Non-GAAP) (4)(5)
2.66 %2.64 %2.41 %
(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.
(2) Includes fees on loans held for sale and held for investment. 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.
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
12
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Credit Quality
(Dollars in Thousands Except Ratios, Unaudited)
Quarter Ended
September 30,June 30,March 31,December 31,September 30,% Change
202420242024202320233Q24 vs 2Q243Q24 vs 3Q23
Non-accrual loans
Commercial$6,830 $4,321 $5,493 $7,362 $6,919 58 %(1)%
Residential Real estate9,529 8,489 8,725 8,058 7,644 12 %25 %
Mortgage warehouse— — — — — — %— %
Consumer7,208 5,453 4,835 4,290 4,493 32 %60 %
Total non-accrual loans23,567 18,263 19,053 19,710 19,056 29 %24 %
90 days and greater delinquent - accruing interest819 1,039 108 559 392 (21)%109 %
Total non-performing loans24,386 19,302 19,161 20,269 19,448 26 %25 %
Other real estate owned
Commercial$1,158 $1,111 $1,124 $1,124 $1,287 4 %(10)%
Residential Real estate— — — 182 32 — %(100)%
Mortgage warehouse— — — — — — %— %
Consumer36 57 50 205 72 (37)%(50)%
Total other real estate owned$1,194 $1,168 $1,174 $1,511 $1,391 2 %(14)%
Total non-performing assets$25,580 $20,470 $20,335 $21,780 $20,839 25 %23 %
Loan data:
Accruing 30 to 89 days past due loans$18,087 $19,785 $15,154 $16,595 $13,089 (9)%38 %
Substandard loans59,775 51,221 47,469 49,526 47,563 17 %26 %
Net charge-offs (recoveries)
Commercial(55)57 (57)233 142 (196)%(139)%
Residential Real estate(9)(4)(5)21 (39)(125)%77 %
Mortgage warehouse— — — — — — %— %
Consumer439 534 488 531 619 (18)%(29)%
Total net charge-offs375 587 426 785 722 (36)%(48)%
Allowance for credit losses
Commercial32,854 31,941 30,514 29,736 29,472 3 %11 %
Residential Real estate2,675 2,588 2,655 2,503 2,794 3 %(4)%
Mortgage warehouse862 736 659 481 714 17 %21 %
Consumer16,490 16,950 16,559 17,309 16,719 (3)%(1)%
Total allowance for credit losses$52,881 $52,215 $50,387 $50,029 $49,699 1 %6 %
Credit quality ratios
Non-accrual loans to HFI loans0.49 %0.38 %0.41 %0.45 %0.44 %
Non-performing assets to total assets0.32 %0.26 %0.26 %0.27 %0.26 %
Annualized net charge-offs of average total loans0.03 %0.05 %0.04 %0.07 %0.07 %
Allowance for credit losses to HFI loans1.10 %1.08 %1.09 %1.13 %1.14 %
13
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
(Dollars in Thousands, Unaudited)
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Interest income (GAAP)(A)$90,888 $86,981 $85,264 $83,514 $80,125 
Taxable-equivalent adjustment:
   Investment securities - tax exempt (1)
1,677 1,695 1,715 1,799 1,861 
   Loan receivable (2)
340 328 353 314 251 
Interest income (non-GAAP)(B)92,905 89,004 87,332 85,627 82,237 
Interest expense (GAAP)(C)43,978 41,702 41,976 41,257 38,035 
Net interest income (GAAP)(D) =(A) - (C)46,910 45,279 43,288 42,257 42,090 
Net FTE interest income (non-GAAP)(E) = (B) - (C)48,927 47,302 45,356 44,370 44,202 
Average interest earning assets(F)7,330,263 7,212,788 7,293,559 7,239,034 7,286,611 
Net FTE interest margin (non-GAAP)(G) = (E*) / (F)2.66 %2.64 %2.50 %2.43 %2.41 %
(1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
(2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Net income (loss) (GAAP)(A)$18,180 $14,140 $13,991 $(25,215)$16,205 
Average stockholders' equity(B)738,372 726,332 725,083 702,793 715,485 
Average intangible assets(C)166,819 167,659 168,519 169,401 170,301 
Average tangible equity (Non-GAAP)(D) = (B) - (C)$571,553 $558,673 $556,564 $533,392 $545,184 
Return on average tangible common equity ("ROACE") (non-GAAP)(E) = (A*) / (D)12.65 %10.18 %10.11 %(18.76)%11.79 %
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Total stockholders' equity (GAAP)(A)$754,822 $726,665 $721,250 $718,812 $693,369 
Intangible assets (end of period)(B)166,278 167,121 167,965 168,837 169,741 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$588,544 $559,544 $553,285 $549,975 $523,628 
Total assets (GAAP)(D)7,927,457 7,912,527 7,855,707 7,940,485 7,959,434 
Intangible assets (end of period)(B)166,278 167,121 167,965 168,837 169,741 
Total tangible assets (non-GAAP)(E) = (D) - (B)$7,761,179 $7,745,406 $7,687,742 $7,771,648 $7,789,693 
Tangible common equity to tangible assets (Non-GAAP)(G) = (C) / (E)7.58 %7.22 %7.20 %7.08 %6.72 %

14
Horizon Bancorp, Inc. Reports Third Quarter 2024 Results
Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Total stockholders' equity (GAAP)(A)$754,822 $726,665 $721,250 $718,812 $693,369 
Intangible assets (end of period)(B)166,278 167,121 167,965 168,837 169,741 
Total tangible common equity (non-GAAP)(C) = (A) - (B)$588,544 $559,544 $553,285 $549,975 $523,628 
Common shares outstanding(D)43,712,059 43,712,059 43,726,380 43,652,063 43,648,501 
Tangible book value per common share (non-GAAP)(E) = (C) / (D)$13.46 $12.80 $12.65 $12.60 $12.00 
15
Beyond ordinary banking Investor Presentation H o r i z o n B a n c o r p , I n c . ( N A S D A Q : H B N C ) T h i r d Q u a r t e r E n d e d S e p t e m b e r 3 0 , 2 0 2 4 O c t o b e r 2 4 , 2 0 2 4

 
Important Information Forward-Looking Statements This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law. 2

 
Seasoned Management Team Kathie A. DeRuiter EVP & Senior Operations Officer • 35 Years of banking and operational experience • 24 Years as Senior Bank Operations Officer • 27 Years with Horizon Todd A. Etzler EVP & Corporate Secretary & General Counsel • 33 Years of corporate legal experience and 14 years of General Counsel experience • 7 Years with Horizon Lynn M. Kerber EVP & Chief Commercial Banking Officer • 34 Years of banking experience • 7 Years with Horizon Thomas M. Prame President & Chief Executive Officer • 30 Years of banking experience • 3 Years with Horizon Mark E. Secor EVP & Chief Administration Officer • 36 Years of banking and public accounting experience • 17 Years with Horizon John R. Stewart, CFA EVP & Chief Financial Officer • 22 Years of banking, investment management and corporate finance experience • Joined Horizon in 2024 3

 
Third Quarter 2024 * Net Fully-Taxable Equivalent Interest Margin is a Non-GAAP measure. Please see appendix for reconciliations of non-GAAP information to its most comparable GAAP measures. 4 H I G H L I G H T S & D E V E L O P M E N T S • Fourth consecutive quarter of FTE NIM expansion, to 2.66%* • Quality loan growth o Continued commercial loan growth coupled with planned runoff in lower yielding consumer auto loans o Average loans increased 10% annualized linked quarter • Strong funding base o 7% annualized deposit growth o Non-interest bearing balances stable o Realizing tangible benefits of commercial and consumer deposit gathering efforts • Excellent credit metrics o Low NPAs and minimal NCOs • Positive momentum in non-interest income o Gaining traction in core growth areas of treasury management, wealth and mortgage ($000S EXCEPT PER SHARE DATA) 3Q24 2Q24 INCOME STATEMENT Net interest income $46,910 $45,279 NIM (FTE)* 2.66% 2.64% Provision $1,044 $2,369 Non-interest income $11,511 $10,485 Non-interest expense $39,272 $37,522 Net income $18,180 $14,140 Diluted EPS $0.41 $0.32 BALANCE SHEET (period end) Total loans held for investment $4,803,996 $4,822,840 Total deposits $5,727,015 $5,630,154 CREDIT QUALITY NPA/total assets ratio 0.32% 0.26% Annualized net charge-offs to avg. loans 0.03% 0.05%

 
Balanced Loan Growth Data as of most-recent quarter (MRQ) end unless stated otherwise. *Total loans held for investment. 3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S • Quarter end Loans remained nearly flat at $4.8 Billion o Maintaining highly diverse residential, consumer, C&I and CRE portfolios • New production continues shift of loan mix to enhance portfolio profitability o Increases in Commercial & Real Estate offset by planned reduction in Indirect Installment loans portfolio 5 21% 17% 60% 2% Total Loans* $4.8B MRQ end Consumer Residential Commercial Mortgage Warehouse

 
30% 12% 18% 17% 10% 8% 4% Geography $2.9B MRQ end Central Indiana Northern Indiana Western Michigan Southwest Michigan Northern Michigan Eastern Michigan Other Diversified Commercial Portfolio 49% 22% 28% 1% Mix $2.9B MRQ end CRE (non-owner occ.) CRE (owner occ.) C&I Other*** 3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S * The sum of construction & land development loans, multifamily property loans, non-owner-occupied non-farm non-residential property loans and loans to finance CRE not secured by real estate divided by Tier 1 Capital plus Allowance, as of June 30, 2024 ** UBPR Peer Group 3, as of June 30, 2024 *** Land development and spec home loans $41.6 $47.5 $44.1 $46.1 $46.7 $673.2 $712.9 $765.0 $786.8 $808.6 $630.1 $640.7 $653.1 $632.2 $634.5 $1,244.4 $1,273.8 $1,287.5 $1,439.5 $1,424.3 $2,589.2 $2,675.0 $2,749.8 $2,904.6 $2,914.1 3Q23 4Q23 1Q24 2Q24 3Q24 Commercial Loans (period end) Other*** C&I CRE (owner occ.) CRE (non-owner occ.) $m ill io ns • Commercial loan balances grew organically o Quarter end up $9MM • Well balanced geographies, product mix and industry o No segment exceeds 6.0% of total loans o CRE represents 197%* of RBC versus 239% for peers**, with 36% three-year growth versus 54% for peers** Data represents total loans held for investment as of MRQ unless stated otherwise 6

 
Prime Consumer & Residential Lending 3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S 7 • Consumer portfolio o Excluding Indirect Auto remained nearly flat • Mortgage portfolio o Grew $3M or 2% annualized o Consistent higher quality borrowers, significant capacity to pay and low LTV $1,028.4 $1,016.5 $1,029.8 $1,051.4 $1,008.1 $675.4 $681.1 $782.1 $798.0 $801.4 $1,703.8 $1,697.6 $1,811.9 $1,849.4 $1,809.5 3Q23 4Q23 1Q24 2Q24 3Q24 Consumer Residential $m ill io ns Consumer & Residential Loans (period end) HOME EQUITY MORTGAGE CREDIT SCORE 712 759 DEBT-TO-INCOME 27% 34% LOAN-TO-VALUE 85% 70% 44% 31% 19% 6% Mix $1.8B MRQ end Mortgage Home Equity Indirect Auto Direct Installment Data represents total loans held for investment as of MRQ unless stated otherwise

 
Strong Asset Quality Metrics $0.7 $0.8 $0.4 $0.6 $0.4 0.07% 0.07% 0.04% 0.05% 0.03% 3Q23 4Q23 1Q24 2Q24 3Q24 Net Charge Offs Consumer Resi Real Estate Commercial Total Annualized NCOs/ Av. Loans $m ill io ns $19.4 $20.3 $19.2 $19.3 $24.4 0.45% 0.46% 0.41% 0.40% 0.51% 3Q23 4Q23 1Q24 2Q24 3Q24 Non-Performing Loans (period end) Commercial Resi Real Estate Consumer Total NPLs / Loans HFI $m ill io ns $m ill io ns $49.7 $50.0 $50.4 $52.2 $52.9 1.14% 1.13% 1.09% 1.08% 1.10% 3Q23 4Q23 1Q24 2Q24 3Q24 ACL ACL / Loans HFI Allowance for Credit Losses (period end) $m ill io ns $47.6 $49.5 $47.5 $51.2 1.09% 1.12% 1.03% 1.06% 1.24% 3Q23 4Q23 1Q24 2Q24 3Q24 Substandard Loans Substandard Loans / Loans HFI Substandard Loans (period end) 8 $59.8

 
Data as of period end unless stated otherwise Relationship Based Core Deposits 9 3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S • Consumer and Commercial Deposits o Positive momentum in core relationships and balances o Treasury management team investments making a positive impact • Public Deposits o Focusing on primary bank relationships o Positioned well to create additional value with continued rate reductions 27.3% 26.0% 23.7% 25.4% 25.8% 28.4% 29.5% 30.0% 30.1% 30.3% 44.3% 44.5% 46.3% 44.6% 44.0% $1,556 $1,473 $1,324 $1,428 $1,475 $1,621 $1,670 $1,673 $1,693 $1,734 $2,524 $2,522 $2,583 $2,509 $2,517 3Q23 4Q23 1Q24 2Q24 3Q24 Stable Consumer and Commercial Deposits Public Commercial Consumer $m ill io ns $m ill io ns $5,700 $5,665 $5,580 $5,630 $5,727 76.5% 78.0% 82.8% 85.7% 84.0% 3Q23 4Q23 1Q24 2Q24 3Q24 Deposits Loans/Deposits Ample Deposits to Fund Additional Loan Growth

 
NIM Expansion * Net Fully-Taxable Equivalent Interest Margin is a Non-GAAP measure. Please see appendix for reconciliations of non-GAAP information to its most comparable GAAP measures. ** Commercial lending fees recognized in interest income. 3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S • NIM expansion driven by continued, intentional shift in the earning asset mix toward commercial loans, combined with a favorable shift in the funding mix toward lower-cost deposit balances 10

 
Non-Interest Income 3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S 11 Non-interest Income $3.2 $3.2 $3.3 $3.2 $3.4 $3.2 $3.2 $3.1 $3.8 $3.5 $1.2 $1.4 $1.3 $1.4 $1.4 $2.2 $1.7 $1.1 $1.3 $2.0 $2.0 $1.7 $1.1 $0.7 $1.1 $11.8 $10.5 $11.5 3Q23 4Q23* 1Q24 2Q24 3Q24 Service & wire transfer fees Interchange fees Fiduciary activities Mortgage related income All Other Gain (loss) on securities sales $9.9 Data as of MRQ unless stated otherwise. * 4Q23 includes the pre-tax loss of $31.6MM on the sale of $382.7MM in available-for-sale (“AFS”) securities as part of a balance sheet repositioning announced in December 2023. • Continued positive momentum in non-interest income o Creating more stable and diversified revenue streams o Realizing benefits from Treasury Management and Wealth investments o New mortgage leadership in Q2 creating more effective sales and secondary market platform $m ill io ns -$20.4

 
Non-Interest Expense 3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S 12 Non-interest Expense Data as of MRQ unless stated otherwise. • $39.3 MM in non-interest expense, impacted by: o $0.6 MM expense related to a legacy benefits program, which is expected to be resolved in the fourth quarter o $0.6 MM increase in outside services and consulting expense related to strategic initiatives $20.1 $21.9 $20.3 $20.6 $21.8 $16.1 $17.5 $16.8 $16.9 $17.4 $36.2 $39.3 $37.1 $37.5 $39.3 3Q23 4Q23 1Q24 2Q24 3Q24 Salaries & Employee Benefits All Other Non-interest Expense $m ill io ns

 
7.08% 7.20% 7.22% 7.58% $12.60 $12.65 $12.80 $13.46 4Q23 1Q24 2Q24 3Q24 11.11% 10.89% 10.63% 10.74% 4Q23 1Q24 2Q24 3Q24*** TCE/TA* CET1 Ratio Capital Position Provides Flexibility * The tangible common equity to tangible common assets (TCE/TA) ratio and tangible book value per share (TBVPS) are non-GAAP measures. Please see appendix for reconciliations of non-GAAP information to its most comparable GAAP measures. ** Prior periods have been previously revised (see disclosure in Form 10-Q for the quarterly period ending June 30, 2024) *** Preliminary estimate – may be subject to change 8.61% 8.91% 9.02% 9.01% 4Q23** 1Q24** 2Q24 3Q24*** 14.04% 13.75% 13.41% 13.52% 4Q23** 1Q24** 2Q24 3Q24*** Leverage Ratio Total RBC Ratio 13 HBNC RatioHBNC TBVPS*

 
Accretive Q4 2024 Strategic Actions • Repositioned ~$325MM AFS Securities (Book Value) o Completed over the first half of October o Realized pre-tax loss of $39MM (tax deductible) o Sold securities: 1.56% yield, weighted average life of 4.9 years o Net proceeds will be held in cash in the immediate term. Redeployed into higher yielding assets, organic loan growth and repayment of FHLB advances • Ongoing Strategic Tax Planning o Potential to recover existing tax valuation allowance • Sale of Mortgage Warehouse Business o LOI entered in October with anticipated close in 2024 o No material impact on deposit balances o Liquidity created to be held in cash and redeployed into core business activities o Sale expected to be neutral to net income, while generating a gain-on-sale S i m p l i f y i n g B u s i n e s s M o d e l , S t r e n g t h e n i n g B a l a n c e S h e e t & I m p r o v i n g P r o f i t a b i l i t y 14 Expected Financial Impact: • Less than 4.0 year earn-back on net after-tax loss for these transactions • Conservative run-rate EPS accretion of $0.12 annually Q4 2024 : • Securities repositioning in October to add 8-10 bps to NIM in Q4 • Adds approximately 2% to TBV/share and accretive to TCE/TA • Immediately accretive to ROA, ROE and ROTCE 2025 • FHLB advance repayment of $200MM at 4.02% in March and April • Addition NIM expansion of 5-10 bps with liquidity redeploying into higher yielding assets, FHLB repayment • Total TCE/TA accretion of 30-40 bps, post FHLB repayment • Neutral to leverage ratio with modest dilution to risk-based capital ratios, post FHLB repayment

 
Q4 2024 Guidance Summary Loans • Period-end total loan balances to remain relatively unchanged in Q4, excluding mortgage warehouse balances • Continued growth in higher-yielding commercial loans mostly offset by continued runoff in indirect auto loans • October loan portfolio yields of ~6.30% Deposits • Period-end total deposit balances and mix to remain relatively stable in Q4 • October interest-bearing deposit costs, including time balances, of ~2.50% NII and NIM • Upper single digit increase in net interest income in Q4 relative to Q3 2024 • Net interest margin for Q4 to increase by 15 - 20 basis points from reported Q3 2024, inclusive of the October securities repositioning • Assumes two 25 basis point reductions, in November and December Non-Interest Income • Q4 non-interest income in the $10.5-11.5 million range Non-Interest Expense • Q4 non-interest expense of approximately $42 million, which includes a few episodic expenses to support ongoing strategic initiatives that will not carry forward to 2025 • Preliminary outlook for full-year 2025 non-interest expense consistent with current consensus estimates Tax Rate • Preliminary outlook for full-year 2025 effective tax rate in the range of 10.0% - 12.0% 15

 
On The Horizon P o s i t i v e M o m e n t u m A c r o s s t h e F r a n c h i s e Constant, High Quality Loan Growth Positive loan momentum driven by a well- diversified commercial portfolio Reinvesting lower yielding consumer loans into more profitable core relationships A proven history of excellent credit quality with low charge-offs and well managed non- performing metrics Tenured Deposit Base With Significant Liquidity Tenured, granular deposits across relationship-based consumer and commercial clients Deposit gathering efforts provide ample funding for loan growth Investments to expand commercial wallet share and new client acquisitions are yielding positive results Lean In Operating Culture Proactively managing balance sheet to create greater operating leverage and elevate key performance metrics Simplifying business model and aligning resources to core banking verticals that create long-term shareholder value Maintaining a disciplined operating culture with conservative credit profile 16 Highly Attractive Midwestern Markets 70+ branches strategically located in attractive communities with strong business profiles, favorable housing and affordability metrics. Core markets include major brands representing multi- national companies, flourishing ecosystem of suppliers and thriving college towns Significant infrastructure investments supporting continued growth and positive economic impact

 
Appendix

 
Diverse Commercial Lending Portfolio S T R O N G A N D T R A D I T I O N A L C O M M E R C I A L L E N D I N G • Multi-family represents 5.6% of loans o No major metros outside Indiana and Michigan, other than Columbus, OH o Zero rent regulated/stabilized originated or in portfolio o $2MM average loan size • Non-owner-occupied office represents 3.6% of total loans o All in Indiana and Michigan o $1MM average loan size • Nursing Home and Assisted Living Facilities represents 1.0% of loans Data as of most-recent quarter (MRQ) unless stated otherwise. 18 COMMERCIAL LOANS BY INDUSTRY 9/30/2024 Balance % of Commercial Portfolio % of Total Loan Portfolio Lessors - Residential Multi $ 271 9.3% 5.6% Health Care, Educational Social Assist. 233 8.0% 4.8% NOO- Warehouse/Industrial 209 7.2% 4.3% NOO- Retail 180 6.2% 3.7% NOO- Office (except medical) 171 5.9% 3.6% Manufacturing 151 5.2% 3.1% NOO- Motel 156 5.4% 3.2% Individuals and Other Services 144 4.9% 3.0% Real Estate Rental & Leasing 138 4.7% 2.9% Lessors Student Housing 134 4.6% 2.8% Finance & Insurance 129 4.4% 2.7% Construction 107 3.7% 2.2% Retail Trade 95 3.3% 2.0% NOO- Medical Office 89 3.1% 1.9% NOO- Mini Storage 81 2.8% 1.7% Lessors - Residential 1-4 73 2.5% 1.5% Restaurants 67 2.3% 1.4% Transportation & Warehousing 59 2.0% 1.2% Government 57 2.0% 1.2% Wholesale Trade 54 1.9% 1.1% Leisure and Hospitality 51 1.8% 1.1% Professional & Technical Services 50 1.7% 1.0% Nursing Home and Assisted Living Facilities 50 1.7% 1.0% Farm Land 32 1.1% 0.7% Agriculture 26 0.9% 0.5% Development Loans 22 0.8% 0.5% Other 85 2.9% 1.8% Total 2,914 100.0% 60.5%

 
Well-Managed CRE Maturities $m ill io ns $109 $37 5% 2% All rates <7% rates Loans Outstanding % of Total Adjusted CRE* 2024 Maturities Remaining Average Rate 6.48% $m ill io ns $200 $111 10% 5% All rates <7% rates Loans Outstanding % of Total Adjusted CRE* 2025 Maturities Average Rate 5.85% Data as of MRQ end. * Adjusted CRE excludes loans closed, non-accrual and matured prior to 2024. 19

 
3 Q 2 4 H I G H L I G H T S & D E V E L O P M E N T S $m ill io ns • No new investments in the quarter • High credit quality treasuries, agencies, municipals and mortgage-backed securities • $325MM of securities sold in the first half of October as part of balance sheet optimization All dollar amounts in millions * The Company adjusts average rates for tax-exempt securities to an FTE basis utilizing a 21% tax rate. 20 3Q23 4Q23 1Q24 2Q24 3Q24 ROLL-OFF/CASH FLOW $26 $28 $27 $26 $23 SALES – $383 – – – DURATION (YEARS) 6.7 7.0 6.9 6.8 6.8 AVERAGE RATE ON INVESTMENT SECURITIES (FTE)* 2.35% 2.39% 2.39% 2.39% 2.38% Investment Securities Detail $28 $20 $23 $38 2.96% 2.31% 2.36% 1.84% 4Q24 1Q25 2Q25 3Q25 Projected Cash Flows and Roll-Off Yield following Oct ’24 Securities Sale Cash Flows Yield Roll-Off (FTE)*

 
Highly Attractive Midwestern Markets D I S T R I B U T I O N I N E X C E L L E N T G R O W T H M A R K E T S Economically Attractive Horizon’s branches are located strategically in markets with attractive business environments, tax rates, housing affordability, infrastructure and quality of life. Our markets are stable and strong with reduced volatility compared to major metropolitan markets. Major Brands Horizon’s markets are home to multi-national companies, flourishing ecosystems of suppliers, spin-offs and professional services firms, and thriving college towns. These regional economic engines include global leaders in medical devices, pharmaceuticals, semiconductors, AI datacenters, agribusiness, automotive/mobility, alternative energy, and high-tech manufacturing, as well as world-renowned universities like Notre Dame, Purdue, Indiana, Michigan, Michigan State, and Grand Valley State. Diverse Opportunities Horizon’s Commercial and Retail Banking offerings are complimented by well-developed Treasury Management, Wealth, Mortgage Banking platforms. Horizon’s core deposit franchise is grounded in the long tenure of its clients, significant market share, and its relationship based banking model. Loans $2.1B Loans $2.1B Deposits $1.9B Deposits $4.0B Data as of most-recent quarter (MRQ). Loans outstanding by state exclude mortgage warehouse and acquired loans. 21

 
Use of Non-GAAP Financial Measures Certain information set forth in this presentation refers to financial measures determined by methods other than in accordance with GAAP. 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 and swap termination fees, 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 presentation for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures. 22

 
Non-GAAP Reconciliation 23

 
Non-GAAP Reconciliation 24

 
Non-GAAP Reconciliation 25

 
Thank you John R. Stewart, CFA Executive Vice President & Chief Financial Officer 515 Franklin Street, Michigan City, IN 46360 219-814-5833 Investor.HorizonBank.com

 
v3.24.3
Cover Page Cover Page
Apr. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 23, 2024
Entity File Number 000-10792
Entity Registrant Name HORIZON BANCORP, INC.
Entity Central Index Key 0000706129
Amendment Flag false
Title of 12(b) Security Common stock, no par value
Entity Incorporation, State or Country Code IN
Entity Tax Identification Number 35-1562417
Trading Symbol HBNC
Security Exchange Name NASDAQ
Entity Address, Address Line One 515 Franklin Street
Entity Address, City or Town Michigan City
Entity Address, State or Province IN
Entity Address, Postal Zip Code 46360
City Area Code 219
Local Phone Number 879-0211
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Horizon Bancorp (NASDAQ:HBNC)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Horizon Bancorp Charts.
Horizon Bancorp (NASDAQ:HBNC)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Horizon Bancorp Charts.