false 2024 Q3 0000706129 12-31 P5Y P2Y xbrli:shares iso4217:USD iso4217:USD xbrli:shares hbnc:security xbrli:pure 0000706129 2024-01-01 2024-09-30 0000706129 2024-11-11 0000706129 2024-09-30 0000706129 2023-12-31 0000706129 2024-07-01 2024-09-30 0000706129 2023-07-01 2023-09-30 0000706129 2023-01-01 2023-09-30 0000706129 us-gaap:PreferredStockMember 2023-06-30 0000706129 us-gaap:CommonStockMember 2023-06-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0000706129 us-gaap:RetainedEarningsMember 2023-06-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-06-30 0000706129 2023-06-30 0000706129 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-07-01 2023-09-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-09-30 0000706129 us-gaap:PreferredStockMember 2023-09-30 0000706129 us-gaap:CommonStockMember 2023-09-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0000706129 us-gaap:RetainedEarningsMember 2023-09-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-09-30 0000706129 2023-09-30 0000706129 us-gaap:PreferredStockMember 2024-06-30 0000706129 us-gaap:CommonStockMember 2024-06-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0000706129 us-gaap:RetainedEarningsMember 2024-06-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-06-30 0000706129 2024-06-30 0000706129 us-gaap:RetainedEarningsMember 2024-07-01 2024-09-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-07-01 2024-09-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2024-07-01 2024-09-30 0000706129 us-gaap:PreferredStockMember 2024-09-30 0000706129 us-gaap:CommonStockMember 2024-09-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2024-09-30 0000706129 us-gaap:RetainedEarningsMember 2024-09-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-09-30 0000706129 us-gaap:PreferredStockMember 2022-12-31 0000706129 us-gaap:CommonStockMember 2022-12-31 0000706129 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0000706129 us-gaap:RetainedEarningsMember 2022-12-31 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0000706129 2022-12-31 0000706129 us-gaap:RetainedEarningsMember 2023-01-01 2023-09-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-09-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-09-30 0000706129 us-gaap:PreferredStockMember 2023-12-31 0000706129 us-gaap:CommonStockMember 2023-12-31 0000706129 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0000706129 us-gaap:RetainedEarningsMember 2023-12-31 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0000706129 us-gaap:RetainedEarningsMember 2024-01-01 2024-09-30 0000706129 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-09-30 0000706129 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-09-30 0000706129 2019-07-16 0000706129 us-gaap:RestrictedStockMember 2024-07-01 2024-09-30 0000706129 us-gaap:RestrictedStockMember 2023-07-01 2023-09-30 0000706129 us-gaap:RestrictedStockMember 2024-01-01 2024-09-30 0000706129 us-gaap:RestrictedStockMember 2023-01-01 2023-09-30 0000706129 us-gaap:EmployeeStockOptionMember 2024-07-01 2024-09-30 0000706129 us-gaap:EmployeeStockOptionMember 2023-07-01 2023-09-30 0000706129 us-gaap:EmployeeStockOptionMember 2024-01-01 2024-09-30 0000706129 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-09-30 0000706129 us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 2023-01-01 2023-12-31 0000706129 us-gaap:USStatesAndPoliticalSubdivisionsMember hbnc:InternallyAssignedRatingMethodologyMember 2024-09-30 0000706129 us-gaap:USStatesAndPoliticalSubdivisionsMember hbnc:InternallyAssignedRatingMethodologyMember 2023-12-31 0000706129 srt:MoodysAaaRatingMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 hbnc:MoodysAARatingMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 hbnc:MoodysARatingMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 hbnc:MoodysBBBRatingMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 hbnc:MoodysBBRatingMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 hbnc:MoodysNotRatedMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 srt:MoodysAaaRatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 hbnc:MoodysAARatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 hbnc:MoodysARatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 hbnc:MoodysBBBRatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 hbnc:MoodysBBRatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 hbnc:MoodysNotRatedMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 srt:MoodysAaaRatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 hbnc:MoodysAARatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 hbnc:MoodysARatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 hbnc:MoodysBBBRatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 hbnc:MoodysBBRatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 hbnc:MoodysNotRatedMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 srt:MoodysAaaRatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysAARatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysARatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysBBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysNotRatedMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 srt:MoodysAaaRatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysAARatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysARatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysBBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 hbnc:MoodysNotRatedMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 srt:MoodysAaaRatingMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 hbnc:MoodysAARatingMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 hbnc:MoodysARatingMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 hbnc:MoodysBBBRatingMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 hbnc:MoodysBBRatingMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 hbnc:MoodysNotRatedMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 srt:MoodysAaaRatingMember 2024-09-30 0000706129 hbnc:MoodysAARatingMember 2024-09-30 0000706129 hbnc:MoodysARatingMember 2024-09-30 0000706129 hbnc:MoodysBBBRatingMember 2024-09-30 0000706129 hbnc:MoodysBBRatingMember 2024-09-30 0000706129 hbnc:MoodysNotRatedMember 2024-09-30 0000706129 srt:MoodysAaaRatingMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 hbnc:MoodysAARatingMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 hbnc:MoodysARatingMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 hbnc:MoodysBBBRatingMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 hbnc:MoodysBBRatingMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 hbnc:MoodysNotRatedMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 srt:MoodysAaaRatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 hbnc:MoodysAARatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 hbnc:MoodysARatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 hbnc:MoodysBBBRatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 hbnc:MoodysBBRatingMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 hbnc:MoodysNotRatedMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 srt:MoodysAaaRatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 hbnc:MoodysAARatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 hbnc:MoodysARatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 hbnc:MoodysBBBRatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 hbnc:MoodysBBRatingMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 hbnc:MoodysNotRatedMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 srt:MoodysAaaRatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysAARatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysARatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysBBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysNotRatedMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 srt:MoodysAaaRatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysAARatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysARatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysBBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysBBRatingMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 hbnc:MoodysNotRatedMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 srt:MoodysAaaRatingMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 hbnc:MoodysAARatingMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 hbnc:MoodysARatingMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 hbnc:MoodysBBBRatingMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 hbnc:MoodysBBRatingMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 hbnc:MoodysNotRatedMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 srt:MoodysAaaRatingMember 2023-12-31 0000706129 hbnc:MoodysAARatingMember 2023-12-31 0000706129 hbnc:MoodysARatingMember 2023-12-31 0000706129 hbnc:MoodysBBBRatingMember 2023-12-31 0000706129 hbnc:MoodysBBRatingMember 2023-12-31 0000706129 hbnc:MoodysNotRatedMember 2023-12-31 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 hbnc:NonOwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 hbnc:NonOwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 hbnc:ResidentialSpecHomesMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 hbnc:ResidentialSpecHomesMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 hbnc:DevelopmentAndSpecLandLoansMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 hbnc:DevelopmentAndSpecLandLoansMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 hbnc:ResidentialMortgageLoanMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 hbnc:ResidentialMortgageLoanMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 hbnc:ResidentialConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 hbnc:ResidentialConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 hbnc:MortgageWarehousingMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 hbnc:MortgageWarehousingMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 hbnc:InstallmentMember us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 hbnc:InstallmentMember us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 hbnc:IndirectAutoMember us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 hbnc:IndirectAutoMember us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 hbnc:ResidentialConstructionLoanMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 hbnc:MortgageWarehouseLoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 hbnc:ResidentialConstructionLoanMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 hbnc:MortgageWarehouseLoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialMortgageLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialMortgageLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialMortgageLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialConstructionMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialConstructionMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialConstructionMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:MortgageWarehousingMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:MortgageWarehousingMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:MortgageWarehousingMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:InstallmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:InstallmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:InstallmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:IndirectAutoMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:IndirectAutoMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:IndirectAutoMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember 2024-09-30 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialMortgageLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialMortgageLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialMortgageLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialConstructionMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialConstructionMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:ResidentialConstructionMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:MortgageWarehousingMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:MortgageWarehousingMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember hbnc:MortgageWarehousingMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:InstallmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:InstallmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:InstallmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:IndirectAutoMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:IndirectAutoMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember hbnc:IndirectAutoMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:FinancingReceivables30To59DaysPastDueMember 2023-12-31 0000706129 us-gaap:FinancingReceivables60To89DaysPastDueMember 2023-12-31 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-12-31 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-07-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-07-01 2024-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-07-01 2024-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-07-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-07-01 2024-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-07-01 2024-09-30 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-07-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-07-01 2024-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-07-01 2024-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-07-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-07-01 2024-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-07-01 2024-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember 2024-01-01 2024-09-30 0000706129 hbnc:NonOwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-01-01 2024-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-01-01 2024-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-01-01 2024-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2024-01-01 2024-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-07-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-07-01 2023-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-07-01 2023-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-07-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-07-01 2023-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-07-01 2023-09-30 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-07-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-07-01 2023-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-07-01 2023-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-07-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-07-01 2023-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-07-01 2023-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-01-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-01-01 2023-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-01-01 2023-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-01-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-01-01 2023-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember 2023-01-01 2023-09-30 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-01-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-01-01 2023-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-01-01 2023-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-01-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-01-01 2023-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember 2023-01-01 2023-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:PrincipalForgivenessMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:ContractualInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:PaymentDeferralMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:ExtendedMaturityAndInterestRateReductionMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 hbnc:MultipleModificationsMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:ConsumerPortfolioSegmentMember 2024-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:ConsumerPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancialAssetNotPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember hbnc:FinancialAsset30To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:FinancialAssetNotPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember hbnc:FinancialAsset30To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancialAssetNotPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember hbnc:FinancialAsset30To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 hbnc:FinancialAsset30To89DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:FinancialAssetNotPastDueMember 2024-09-30 0000706129 hbnc:FinancialAsset30To89DaysPastDueMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancialAssetNotPastDueMember 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember hbnc:FinancialAsset30To89DaysPastDueMember 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-09-30 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancialAssetNotPastDueMember 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember hbnc:FinancialAsset30To89DaysPastDueMember 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2023-09-30 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2023-09-30 0000706129 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember 2023-09-30 0000706129 hbnc:FinancialAsset30To89DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2023-09-30 0000706129 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2023-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:RealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:EquipmentMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember hbnc:OtherMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:CollateralPledgedMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:RealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:EquipmentMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember hbnc:OtherMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:CollateralPledgedMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:RealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:EquipmentMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember hbnc:OtherMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:CollateralPledgedMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:RealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:EquipmentMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember hbnc:OtherMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:CollateralPledgedMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:RealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:EquipmentMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember hbnc:OtherMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:CollateralPledgedMember 2024-09-30 0000706129 us-gaap:RealEstateMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:EquipmentMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 hbnc:OtherMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:CollateralPledgedMember us-gaap:CommercialPortfolioSegmentMember 2024-09-30 0000706129 us-gaap:RealEstateMember 2024-09-30 0000706129 us-gaap:EquipmentMember 2024-09-30 0000706129 hbnc:OtherMember 2024-09-30 0000706129 us-gaap:CollateralPledgedMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:RealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:EquipmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember hbnc:OtherMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:OwnerOccupiedRealEstateMember us-gaap:CollateralPledgedMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:RealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:EquipmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember hbnc:OtherMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:NonOwnerOccupiedRealEstateMember us-gaap:CollateralPledgedMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:RealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:EquipmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember hbnc:OtherMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:ResidentialSpecHomesMember us-gaap:CollateralPledgedMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:RealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:EquipmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember hbnc:OtherMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:DevelopmentAndSpecLandLoansMember us-gaap:CollateralPledgedMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:RealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:EquipmentMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember hbnc:OtherMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember hbnc:CommercialAndIndustrialLoanMember us-gaap:CollateralPledgedMember 2023-12-31 0000706129 us-gaap:RealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:EquipmentMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 hbnc:OtherMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:CollateralPledgedMember us-gaap:CommercialPortfolioSegmentMember 2023-12-31 0000706129 us-gaap:RealEstateMember 2023-12-31 0000706129 us-gaap:EquipmentMember 2023-12-31 0000706129 hbnc:OtherMember 2023-12-31 0000706129 us-gaap:CollateralPledgedMember 2023-12-31 0000706129 srt:MinimumMember 2024-09-30 0000706129 srt:MaximumMember 2024-09-30 0000706129 srt:MinimumMember 2024-01-01 2024-09-30 0000706129 srt:MaximumMember 2024-01-01 2024-09-30 0000706129 srt:MinimumMember hbnc:GoodPassMember 2024-01-01 2024-09-30 0000706129 srt:MaximumMember hbnc:SatisfactoryPassMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:OwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:OwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:OwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:OwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:NonOwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:NonOwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:NonOwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:NonOwnerOccupiedRealEstateMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:ResidentialSpecHomesMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:ResidentialSpecHomesMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:ResidentialSpecHomesMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:ResidentialSpecHomesMember 2024-09-30 0000706129 hbnc:ResidentialSpecHomesMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:DevelopmentAndSpecLandLoansMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:DevelopmentAndSpecLandLoansMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:DevelopmentAndSpecLandLoansMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:DevelopmentAndSpecLandLoansMember 2024-09-30 0000706129 hbnc:DevelopmentAndSpecLandLoansMember us-gaap:CommercialPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:CommercialAndIndustrialLoanMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:CommercialAndIndustrialLoanMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:CommercialAndIndustrialLoanMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:CommercialAndIndustrialLoanMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:ResidentialMortgageLoanMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:ResidentialMortgageLoanMember 2024-09-30 0000706129 hbnc:ResidentialMortgageLoanMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:ResidentialConstructionMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:ResidentialConstructionMember 2024-09-30 0000706129 hbnc:ResidentialConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:MortgageWarehousingMember 2024-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:MortgageWarehousingMember 2024-09-30 0000706129 hbnc:MortgageWarehousingMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:InstallmentMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:InstallmentMember 2024-09-30 0000706129 hbnc:InstallmentMember us-gaap:ConsumerPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:IndirectAutoMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:IndirectAutoMember 2024-09-30 0000706129 hbnc:IndirectAutoMember us-gaap:ConsumerPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember us-gaap:HomeEquityLoanMember 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember us-gaap:HomeEquityLoanMember 2024-09-30 0000706129 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:OwnerOccupiedRealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:OwnerOccupiedRealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:OwnerOccupiedRealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:OwnerOccupiedRealEstateMember 2023-12-31 0000706129 hbnc:OwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:NonOwnerOccupiedRealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:NonOwnerOccupiedRealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:NonOwnerOccupiedRealEstateMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:NonOwnerOccupiedRealEstateMember 2023-12-31 0000706129 hbnc:NonOwnerOccupiedRealEstateMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:ResidentialSpecHomesMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:ResidentialSpecHomesMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:ResidentialSpecHomesMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:ResidentialSpecHomesMember 2023-12-31 0000706129 hbnc:ResidentialSpecHomesMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:DevelopmentAndSpecLandLoansMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:DevelopmentAndSpecLandLoansMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:DevelopmentAndSpecLandLoansMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:DevelopmentAndSpecLandLoansMember 2023-12-31 0000706129 hbnc:DevelopmentAndSpecLandLoansMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hbnc:CommercialAndIndustrialLoanMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember hbnc:CommercialAndIndustrialLoanMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember hbnc:CommercialAndIndustrialLoanMember 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember hbnc:CommercialAndIndustrialLoanMember 2023-12-31 0000706129 hbnc:CommercialAndIndustrialLoanMember us-gaap:CommercialPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:ResidentialMortgageLoanMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:ResidentialMortgageLoanMember 2023-12-31 0000706129 hbnc:ResidentialMortgageLoanMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:ResidentialConstructionMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:ResidentialConstructionMember 2023-12-31 0000706129 hbnc:ResidentialConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:MortgageWarehousingMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:MortgageWarehousingMember 2023-12-31 0000706129 hbnc:MortgageWarehousingMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:InstallmentMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:InstallmentMember 2023-12-31 0000706129 hbnc:InstallmentMember us-gaap:ConsumerPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember hbnc:IndirectAutoMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember hbnc:IndirectAutoMember 2023-12-31 0000706129 hbnc:IndirectAutoMember us-gaap:ConsumerPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember us-gaap:HomeEquityLoanMember 2023-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember us-gaap:HomeEquityLoanMember 2023-12-31 0000706129 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2023-01-01 2023-12-31 0000706129 us-gaap:CommercialPortfolioSegmentMember 2024-06-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-06-30 0000706129 hbnc:MortgageWarehouseLoansMember 2024-06-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2024-06-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 hbnc:MortgageWarehouseLoansMember 2024-07-01 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2024-07-01 2024-09-30 0000706129 hbnc:MortgageWarehouseLoansMember 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2023-06-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-06-30 0000706129 hbnc:MortgageWarehouseLoansMember 2023-06-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2023-06-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 hbnc:MortgageWarehouseLoansMember 2023-07-01 2023-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2023-07-01 2023-09-30 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-09-30 0000706129 hbnc:MortgageWarehouseLoansMember 2023-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2023-09-30 0000706129 hbnc:MortgageWarehouseLoansMember 2023-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 hbnc:MortgageWarehouseLoansMember 2024-01-01 2024-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2024-01-01 2024-09-30 0000706129 us-gaap:CommercialPortfolioSegmentMember 2022-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2022-12-31 0000706129 hbnc:MortgageWarehouseLoansMember 2022-12-31 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2022-12-31 0000706129 us-gaap:CommercialRealEstatePortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 hbnc:MortgageWarehouseLoansMember 2023-01-01 2023-09-30 0000706129 us-gaap:ConsumerPortfolioSegmentMember 2023-01-01 2023-09-30 0000706129 us-gaap:MaturityOvernightMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:MaturityUpTo30DaysMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:Maturity30To90DaysMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:MaturityOver90DaysMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:MaturityOvernightMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:MaturityUpTo30DaysMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:Maturity30To90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:MaturityOver90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:MaturityOvernightMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 us-gaap:MaturityUpTo30DaysMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 us-gaap:Maturity30To90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 us-gaap:MaturityOver90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2024-09-30 0000706129 us-gaap:MaturityOvernightMember 2024-09-30 0000706129 us-gaap:MaturityUpTo30DaysMember 2024-09-30 0000706129 us-gaap:Maturity30To90DaysMember 2024-09-30 0000706129 us-gaap:MaturityOver90DaysMember 2024-09-30 0000706129 us-gaap:MaturityOvernightMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:MaturityUpTo30DaysMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:Maturity30To90DaysMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:MaturityOver90DaysMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:MaturityOvernightMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:MaturityUpTo30DaysMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:Maturity30To90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:MaturityOver90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:MaturityOvernightMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 us-gaap:MaturityUpTo30DaysMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 us-gaap:Maturity30To90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 us-gaap:MaturityOver90DaysMember us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2023-12-31 0000706129 us-gaap:MaturityOvernightMember 2023-12-31 0000706129 us-gaap:MaturityUpTo30DaysMember 2023-12-31 0000706129 us-gaap:Maturity30To90DaysMember 2023-12-31 0000706129 us-gaap:MaturityOver90DaysMember 2023-12-31 0000706129 2020-06-24 0000706129 us-gaap:SecuredDebtMember 2023-12-08 2023-12-08 0000706129 2023-12-08 0000706129 us-gaap:InterestRateSwapMember 2024-09-30 0000706129 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2024-09-30 0000706129 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2023-05-23 2023-05-23 0000706129 us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-09-30 0000706129 us-gaap:DesignatedAsHedgingInstrumentMember 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2024-09-30 0000706129 hbnc:MortgageLoanContractsMember us-gaap:NondesignatedMember 2024-09-30 0000706129 hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:NondesignatedMember 2024-09-30 0000706129 us-gaap:NondesignatedMember 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-12-31 0000706129 us-gaap:DesignatedAsHedgingInstrumentMember 2023-12-31 0000706129 us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2023-12-31 0000706129 hbnc:MortgageLoanContractsMember us-gaap:NondesignatedMember 2023-12-31 0000706129 hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:NondesignatedMember 2023-12-31 0000706129 us-gaap:NondesignatedMember 2023-12-31 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2024-07-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2023-07-01 2023-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2024-01-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2023-01-01 2023-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-07-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-07-01 2023-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-01-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-01-01 2023-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2024-07-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2023-07-01 2023-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2024-01-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2023-01-01 2023-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2024-07-01 2024-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2023-07-01 2023-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2024-01-01 2024-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeLoansReceivableMember 2023-01-01 2023-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2024-07-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2023-07-01 2023-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2024-01-01 2024-09-30 0000706129 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2023-01-01 2023-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2024-07-01 2024-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2023-07-01 2023-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2024-01-01 2024-09-30 0000706129 hbnc:HedgedItemMember us-gaap:DesignatedAsHedgingInstrumentMember hbnc:InterestIncomeInvestmentSecuritiesMember 2023-01-01 2023-09-30 0000706129 us-gaap:DesignatedAsHedgingInstrumentMember 2024-07-01 2024-09-30 0000706129 us-gaap:DesignatedAsHedgingInstrumentMember 2023-07-01 2023-09-30 0000706129 us-gaap:DesignatedAsHedgingInstrumentMember 2024-01-01 2024-09-30 0000706129 us-gaap:DesignatedAsHedgingInstrumentMember 2023-01-01 2023-09-30 0000706129 hbnc:MortgageLoanContractsMember us-gaap:NondesignatedMember 2024-07-01 2024-09-30 0000706129 hbnc:MortgageLoanContractsMember us-gaap:NondesignatedMember 2023-07-01 2023-09-30 0000706129 hbnc:MortgageLoanContractsMember us-gaap:NondesignatedMember 2024-01-01 2024-09-30 0000706129 hbnc:MortgageLoanContractsMember us-gaap:NondesignatedMember 2023-01-01 2023-09-30 0000706129 hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:NondesignatedMember 2024-07-01 2024-09-30 0000706129 hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:NondesignatedMember 2023-07-01 2023-09-30 0000706129 hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:NondesignatedMember 2024-01-01 2024-09-30 0000706129 hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:NondesignatedMember 2023-01-01 2023-09-30 0000706129 us-gaap:NondesignatedMember 2024-07-01 2024-09-30 0000706129 us-gaap:NondesignatedMember 2023-07-01 2023-09-30 0000706129 us-gaap:NondesignatedMember 2024-01-01 2024-09-30 0000706129 us-gaap:NondesignatedMember 2023-01-01 2023-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember hbnc:CommitmentsToOriginateMortgageLoansMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember hbnc:MortgageLoanContractsMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member hbnc:MortgageLoanContractsMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member hbnc:MortgageLoanContractsMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:MortgageLoanContractsMember us-gaap:FairValueMeasurementsRecurringMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember hbnc:FederalAgencyCollateralizedMortgageObligationsMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember hbnc:CommitmentsToOriginateMortgageLoansMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:CommitmentsToOriginateMortgageLoansMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsRecurringMember hbnc:MortgageLoanContractsMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member hbnc:MortgageLoanContractsMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member hbnc:MortgageLoanContractsMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:MortgageLoanContractsMember us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000706129 us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2024-09-30 0000706129 us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember hbnc:CollateralDependentLoansMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:CollateralDependentLoansMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:CollateralDependentLoansMember 2024-01-01 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member srt:MinimumMember hbnc:CollateralDependentLoansMember 2024-01-01 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member srt:MaximumMember hbnc:CollateralDependentLoansMember 2024-01-01 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member srt:WeightedAverageMember hbnc:CollateralDependentLoansMember 2024-01-01 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:CollateralDependentLoansMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member hbnc:CollateralDependentLoansMember 2023-01-01 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member srt:MinimumMember hbnc:CollateralDependentLoansMember 2023-01-01 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member srt:MaximumMember hbnc:CollateralDependentLoansMember 2023-01-01 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member srt:WeightedAverageMember hbnc:CollateralDependentLoansMember 2023-01-01 2023-12-31 0000706129 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2024-09-30 0000706129 us-gaap:FairValueInputsLevel1Member 2024-09-30 0000706129 us-gaap:FairValueInputsLevel2Member 2024-09-30 0000706129 us-gaap:FairValueInputsLevel3Member 2024-09-30 0000706129 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2023-12-31 0000706129 us-gaap:FairValueInputsLevel1Member 2023-12-31 0000706129 us-gaap:FairValueInputsLevel2Member 2023-12-31 0000706129 us-gaap:FairValueInputsLevel3Member 2023-12-31 0000706129 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-09-30 0000706129 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-12-31 0000706129 hbnc:UnamortizedUnrealizedGainsOnSecuritiesTransferredToHeldToMaturityMember 2024-09-30 0000706129 hbnc:UnamortizedUnrealizedGainsOnSecuritiesTransferredToHeldToMaturityMember 2023-12-31 0000706129 srt:SubsidiariesMember 2024-09-30 0000706129 srt:ScenarioPreviouslyReportedMember 2023-12-31 0000706129 srt:SubsidiariesMember 2023-12-31 0000706129 us-gaap:SubsequentEventMember 2024-10-31 0000706129 us-gaap:SubsequentEventMember 2024-10-01 2024-10-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024
OR

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from________to
Commission file number 0-10792
HORIZON BANCORP, INC.
(Exact name of registrant as specified in its charter)

Indiana | 35-1562417
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)

515 Franklin Street, Michigan City, Indiana 46360
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (219) 879-0211
Former name, former address and former fiscal year, if changed since last report: N/A
____________________________
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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer | ☐ | Accelerated Filer | ☒
Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐
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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 43,715,218 shares of Common Stock, no par value, at November 11, 2024.

Table of Contents
HORIZON BANCORP, INC.
FORM 10–Q
INDEX

PART I. FINANCIAL INFORMATION |
Item 1. | Financial Statements (Unaudited) | 3
| Condensed Consolidated Balance Sheets | 3
| Condensed Consolidated Statements of Income | 4
| Condensed Consolidated Statements of Comprehensive Income | 5
| Condensed Consolidated Statements of Stockholders’ Equity | 6
| Condensed Consolidated Statements of Cash Flows | 8
| Notes to Condensed Consolidated Financial Statements | 9
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 50
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 65
Item 4. | Controls and Procedures | 65
PART II. OTHER INFORMATION |
Item 1. | Legal Proceedings | 67
Item 1A. | Risk Factors | 67
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 67
Item 3. | Defaults Upon Senior Securities | 67
Item 4. | Mine Safety Disclosures | 67
Item 5. | Other Information | 67
Item 6. | Exhibits | 67
Index to Exhibits | 67
Signatures | 68

2

Table of Contents
PART I – FINANCIAL INFORMATION
ITEM 1 – FINANCIAL STATEMENTS
HORIZON BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollar Amounts in Thousands)

| September 30, 2024 |  | December 31, 2023
| (Unaudited) |  |
Assets |  |  |
Cash and due from banks | $ | 108,815 |  |  | $ | 112,772 |
Interest earning deposits | 12,107 |  |  | 12,071 |
Federal funds sold | 113,912 |  |  | 401,672 |
Total cash and cash equivalents | 234,834 |  |  | 526,515 |
Interest earning time deposits | 735 |  |  | 2,205 |
Investment securities, available for sale | 541,170 |  |  | 547,251 |
Investment securities, held to maturity (fair value of $1,640,447 and $1,668,758) | 1,888,379 |  |  | 1,945,638 |
Loans held for sale | 2,069 |  |  | 1,418 |
Loans, net of allowance for credit losses of $52,881 and $50,029 | 4,751,115 |  |  | 4,367,601 |
Premises and equipment, net | 93,544 |  |  | 94,583 |
Federal Home Loan Bank stock | 53,826 |  |  | 34,509 |
Goodwill | 155,211 |  |  | 155,211 |
Other intangible assets | 11,067 |  |  | 13,626 |
Interest receivable | 39,366 |  |  | 38,710 |
Cash value of life insurance | 37,115 |  |  | 36,157 |
Other assets | 119,026 |  |  | 177,061 |
Total assets | $ | 7,927,457 |  |  | $ | 7,940,485 |
Liabilities |  |  |
Deposits |  |  |
Non–interest bearing | $ | 1,085,535 |  |  | $ | 1,116,005 |
Interest bearing | 4,641,480 |  |  | 4,548,888 |
Total deposits | 5,727,015 |  |  | 5,664,893 |
Borrowings | 1,265,143 |  |  | 1,353,050 |
Subordinated notes | 55,703 |  |  | 55,543 |
Junior subordinated debentures issued to capital trusts | 57,423 |  |  | 57,258 |
Interest payable | 11,400 |  |  | 22,249 |
Other liabilities | 55,951 |  |  | 68,680 |
Total liabilities | 7,172,635 |  |  | 7,221,673 |
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 |  |  |
43,712,059 shares issued and outstanding at September 30, 2024 and 43,652,063 shares issued and outstanding at December 31, 2023 | — |  |  | — |
Additional paid-in capital | 358,453 |  |  | 356,400 |
Retained earnings | 454,050 |  |  | 429,021 |
Accumulated other comprehensive loss | (57,681) |  |  | (66,609) |
Total stockholders’ equity | 754,822 |  |  | 718,812 |
Total liabilities and stockholders’ equity | $ | 7,927,457 |  |  | $ | 7,940,485 |

See notes to condensed consolidated financial statements
3

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(Dollar Amounts in Thousands, Except Per Share Data)

|  |  | Three Months Ended |  | Nine Months Ended
|  |  | September 30, |  | September 30,
|  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Interest Income |  |  |  |  |  |  |  |  |  |
Loans receivable |  |  |  | $ | 75,488 |  |  | $ | 63,003 |  |  | $ | 214,322 |  |  | $ | 178,961 |
Investment securities – taxable |  |  |  | 8,133 |  |  | 8,788 |  |  | 23,481 |  |  | 26,253 |
Investment securities – tax exempt |  |  |  | 6,310 |  |  | 7,002 |  |  | 19,138 |  |  | 21,617 |
Other |  |  |  | 957 |  |  | 1,332 |  |  | 6,192 |  |  | 1,960 |
Total interest income |  |  |  | 90,888 |  |  | 80,125 |  |  | 263,133 |  |  | 228,791 |
Interest Expense |  |  |  |  |  |  |  |  |  |
Deposits |  |  |  | 30,787 |  |  | 24,704 |  |  | 87,224 |  |  | 58,481 |
Borrowed funds |  |  |  | 11,131 |  |  | 11,224 |  |  | 34,274 |  |  | 30,713 |
Subordinated notes |  |  |  | 830 |  |  | 880 |  |  | 2,490 |  |  | 2,641 |
Junior subordinated debentures issued to capital trusts |  |  |  | 1,230 |  |  | 1,227 |  |  | 3,668 |  |  | 3,469 |
Total interest expense |  |  |  | 43,978 |  |  | 38,035 |  |  | 127,656 |  |  | 95,304 |
Net Interest Income |  |  |  | 46,910 |  |  | 42,090 |  |  | 135,477 |  |  | 133,487 |
Credit loss expense |  |  |  | 1,044 |  |  | 263 |  |  | 4,218 |  |  | 1,185 |
Net Interest Income after Credit Loss Expense |  |  |  | 45,866 |  |  | 41,827 |  |  | 131,259 |  |  | 132,302 |
Non–interest Income |  |  |  |  |  |  |  |  |  |
Service charges on deposit accounts |  |  |  | 3,320 |  |  | 3,086 |  |  | 9,664 |  |  | 9,135 |
Wire transfer fees |  |  |  | 123 |  |  | 120 |  |  | 337 |  |  | 345 |
Interchange fees |  |  |  | 3,511 |  |  | 3,186 |  |  | 10,446 |  |  | 9,637 |
Fiduciary activities |  |  |  | 1,394 |  |  | 1,206 |  |  | 4,081 |  |  | 3,728 |
(Loss) on sale of investment securities |  |  |  | — |  |  | — |  |  | — |  |  | (480) |
Gain on sale of mortgage loans |  |  |  | 1,622 |  |  | 1,582 |  |  | 3,144 |  |  | 3,372 |
Mortgage servicing income, net |  |  |  | 412 |  |  | 631 |  |  | 1,301 |  |  | 1,984 |
Increase in cash value of bank owned life insurance |  |  |  | 349 |  |  | 1,055 |  |  | 965 |  |  | 3,051 |
Other income |  |  |  | 780 |  |  | 964 |  |  | 1,987 |  |  | 1,675 |
Total non–interest income |  |  |  | 11,511 |  |  | 11,830 |  |  | 31,925 |  |  | 32,447 |
Non–interest Expense |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  |  | 21,829 |  |  | 20,058 |  |  | 62,680 |  |  | 58,932 |
Net occupancy expenses |  |  |  | 3,207 |  |  | 3,283 |  |  | 9,945 |  |  | 10,095 |
Data processing |  |  |  | 2,977 |  |  | 2,999 |  |  | 8,020 |  |  | 8,684 |
Professional fees |  |  |  | 676 |  |  | 707 |  |  | 1,997 |  |  | 1,873 |
Outside services and consultants |  |  |  | 3,677 |  |  | 2,316 |  |  | 10,094 |  |  | 7,548 |
Loan expense |  |  |  | 1,034 |  |  | 1,120 |  |  | 2,791 |  |  | 3,635 |
FDIC insurance expense |  |  |  | 1,204 |  |  | 1,300 |  |  | 3,839 |  |  | 2,680 |
Core deposit intangible amortization |  |  |  | 844 |  |  | 903 |  |  | 2,560 |  |  | 2,709 |
Other losses |  |  |  | 297 |  |  | 188 |  |  | 828 |  |  | 543 |
Other expense |  |  |  | 3,527 |  |  | 3,294 |  |  | 11,147 |  |  | 10,255 |
Total non–interest expense |  |  |  | 39,272 |  |  | 36,168 |  |  | 113,901 |  |  | 106,954 |
Income Before Income Taxes |  |  |  | 18,105 |  |  | 17,489 |  |  | 49,283 |  |  | 57,795 |
Income tax expense (benefit) |  |  |  | (75) |  |  | 1,284 |  |  | 2,972 |  |  | 4,599 |
Net Income |  |  |  | $ | 18,180 |  |  | $ | 16,205 |  |  | $ | 46,311 |  |  | $ | 53,196 |
Basic Earnings Per Share |  |  |  | $ | 0.42 |  |  | $ | 0.37 |  |  | $ | 1.06 |  |  | $ | 1.22 |
Diluted Earnings Per Share |  |  |  | 0.41 |  |  | 0.37 |  |  | 1.05 |  |  | 1.21 |

See notes to condensed consolidated financial statements
4

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(Dollar Amounts in Thousands)

|  |  | Three Months Ended |  | Nine Months Ended
|  |  | September 30, |  | September 30
|  |  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Net Income |  |  |  |  | $ | 18,180 |  |  | $ | 16,205 |  |  | $ | 46,311 |  |  | $ | 53,196 |
Other Comprehensive Income (Loss) |  |  |  |  |  |  |  |  |  |  |
Change in fair value of derivative instruments: |  |  |  |  |  |  |  |  |  |  |
Change in fair value of derivative instruments for the period |  |  |  |  | — |  |  | — |  |  | — |  |  | (523) |
Reclassification adjustment for swap termination gain realized in income |  |  |  |  | — |  |  | — |  |  | — |  |  | (1,453) |
Income tax effect |  |  |  |  | — |  |  | — |  |  | — |  |  | 415 |
Changes from derivative instruments |  |  |  |  | — |  |  | — |  |  | — |  |  | (1,561) |
Change in securities: |  |  |  |  |  |  |  |  |  |  |
Unrealized gain (loss) for the period on available for sale securities |  |  |  |  | 20,800 |  |  | (32,139) |  |  | 11,791 |  |  | (19,790) |
Accretion from transfer of securities from available for sale to held to maturity securities |  |  |  |  | (162) |  |  | (158) |  |  | (490) |  |  | (531) |
Reclassification adjustment for securities losses realized in income |  |  |  |  | — |  |  | — |  |  | — |  |  | 480 |
Income tax effect |  |  |  |  | (4,334) |  |  | 6,782 |  |  | (2,373) |  |  | 4,166 |
Unrealized gains (losses) on securities |  |  |  |  | 16,304 |  |  | (25,515) |  |  | 8,928 |  |  | (15,675) |
Other Comprehensive Income (Loss), Net of Tax |  |  |  |  | 16,304 |  |  | (25,515) |  |  | 8,928 |  |  | (17,236) |
Comprehensive Income (Loss) |  |  |  |  | $ | 34,484 |  |  | $ | (9,310) |  |  | $ | 55,239 |  |  | $ | 35,960 |

See notes to condensed consolidated financial statements
5

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
(Dollar Amounts in Thousands, Except Per Share Data)

| Three Months Ended
| Preferred Stock |  | Common Stock |  | Additional Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Income (Loss) |  | Total
Balances, July 1, 2023 | $ | — |  |  | $ | — |  |  | $ | 354,953 |  |  | $ | 452,209 |  |  | $ | (97,919) |  |  | $ | 709,243 |
Net income | — |  |  | — |  |  | — |  |  | 16,205 |  |  | — |  |  | 16,205 |
Other comprehensive income, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | (25,515) |  |  | (25,515) |
Amortization of unearned compensation | — |  |  | — |  |  | 944 |  |  | — |  |  | — |  |  | 944 |
Net settlement of share awards | — |  |  | — |  |  | (482) |  |  | — |  |  | — |  |  | (482) |
Stock retirement plans | — |  |  | — |  |  | 63 |  |  | — |  |  | — |  |  | 63 |
Cash dividends on common stock ($0.16 per share) | — |  |  | — |  |  | — |  |  | (7,089) |  |  | — |  |  | (7,089) |
Balances, September 30, 2023 | $ | — |  |  | $ | — |  |  | $ | 355,478 |  |  | $ | 461,325 |  |  | $ | (123,434) |  |  | $ | 693,369 |
Balances, July 1, 2024 | $ | — |  |  | $ | — |  |  | $ | 357,673 |  |  | $ | 442,977 |  |  | $ | (73,985) |  |  | $ | 726,665 |
Net income | — |  |  | — |  |  | — |  |  | 18,180 |  |  | — |  |  | 18,180 |
Other comprehensive loss, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | 16,304 |  |  | 16,304 |
Amortization of unearned compensation | — |  |  | — |  |  | 853 |  |  | — |  |  | — |  |  | 853 |
Net settlement of share awards | — |  |  | — |  |  | (73) |  |  | — |  |  | — |  |  | (73) |
Cash dividends on common stock ($0.16 per share) | — |  |  | — |  |  | — |  |  | (7,107) |  |  | — |  |  | (7,107) |
Balances, September 30, 2024 | $ | — |  |  | $ | — |  |  | $ | 358,453 |  |  | $ | 454,050 |  |  | $ | (57,681) |  |  | $ | 754,822 |

See notes to condensed consolidated financial statements
6

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
(Dollar Amounts in Thousands, Except Per Share Data)

| Nine Months Ended
| Preferred Stock |  | Common Stock |  | Additional Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Income (Loss) |  | Total
Balances, January 1, 2023 | $ | — |  |  | $ | — |  |  | $ | 354,188 |  |  | $ | 429,385 |  |  | $ | (106,198) |  |  | $ | 677,375 |
Net income | — |  |  | — |  |  | — |  |  | 53,196 |  |  | — |  |  | 53,196 |
Other comprehensive income, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | (17,236) |  |  | (17,236) |
Amortization of unearned compensation | — |  |  | — |  |  | 2,647 |  |  | — |  |  | — |  |  | 2,647 |
Net settlement of share awards | — |  |  | — |  |  | (1,204) |  |  | — |  |  | — |  |  | (1,204) |
Stock retirement plans | — |  |  | — |  |  | (153) |  |  | — |  |  | — |  |  | (153) |
Cash dividends on common stock ($0.48 per share) | — |  |  | — |  |  | — |  |  | (21,256) |  |  | — |  |  | (21,256) |
Balances, September 30, 2023 | $ | — |  |  | $ | — |  |  | $ | 355,478 |  |  | $ | 461,325 |  |  | $ | (123,434) |  |  | $ | 693,369 |
Balances, January 1, 2024 | $ | — |  |  | $ | — |  |  | $ | 356,400 |  |  | $ | 429,021 |  |  | $ | (66,609) |  |  | $ | 718,812 |
Net income | — |  |  | — |  |  | — |  |  | 46,311 |  |  | — |  |  | 46,311 |
Other comprehensive loss, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | 8,928 |  |  | 8,928 |
Amortization of unearned compensation | — |  |  | — |  |  | 2,893 |  |  | — |  |  | — |  |  | 2,893 |
Net settlement of share awards | — |  |  | — |  |  | (840) |  |  | — |  |  | — |  |  | (840) |
Cash dividends on common stock ($0.48 per share) | — |  |  | — |  |  | — |  |  | (21,282) |  |  | — |  |  | (21,282) |
Balances, September 30, 2024 | $ | — |  |  | $ | — |  |  | $ | 358,453 |  |  | $ | 454,050 |  |  | $ | (57,681) |  |  | $ | 754,822 |

See notes to condensed consolidated financial statements
7

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollar Amounts in Thousands)

| Nine Months Ended
| September 30
| 2024 |  | 2023
Operating Activities |  |  |
Net income | $ | 46,311 |  |  | $ | 53,196 |
Items not requiring (providing) cash |  |  |
Credit loss expense | 4,218 |  |  | 1,185 |
Depreciation and amortization | 7,684 |  |  | 7,920 |
Share based compensation | 2,893 |  |  | 2,647 |
Amortization of mortgage servicing rights | 1,435 |  |  | 832 |
Net amortization of premiums and discounts | 6,496 |  |  | 7,742 |
Loss on sale of investment securities | — |  |  | 480 |
Gain on sale of mortgage loans | (3,144) |  |  | (3,372) |
Proceeds from sales of loans held for sale | 91,515 |  |  | 107,436 |
Loans originated for sale | (89,978) |  |  | (101,948) |
Gain on cash value life insurance | (965) |  |  | (3,051) |
Gain on sale of other real estate owned | (74) |  |  | (234) |
Net change in: |  |  |
Interest receivable | (656) |  |  | (2,556) |
Interest payable | (10,849) |  |  | 10,901 |
Other assets | 12,677 |  |  | (1,048) |
Other liabilities | (12,822) |  |  | (6,174) |
Net cash provided by operating activities | $ | 54,741 |  |  | $ | 73,956 |
Investing Activities |  |  |
Purchases of securities available for sale | $ | — |  |  | $ | (1,435) |
Proceeds from sales of securities available for sale | — |  |  | 88,194 |
Proceeds from maturities, calls and principal repayments of securities available for sale | 14,721 |  |  | 22,783 |
Purchases of securities held to maturity | (312) |  |  | (10,141) |
Proceeds from maturities, calls and principal repayments of securities held to maturity | 52,586 |  |  | 61,191 |
Net change in interest earning time deposits | 1,470 |  |  | 605 |
Purchase of FHLB stock | (19,317) |  |  | (7,832) |
Purchase of loans | (240,020) |  |  | (99,594) |
Net change in loans | (173,382) |  |  | (105,373) |
Proceeds on the sale of OREO and repossessed assets | 1,067 |  |  | 2,280 |
Premises and equipment expenditures | (3,286) |  |  | (6,440) |
Proceeds from bank owned life insurance | 44,043 |  |  | 14 |
Net cash used in investing activities | $ | (322,430) |  |  | $ | (55,748) |
Financing Activities |  |  |
Net change in deposits | 62,122 |  |  | (157,677) |
Proceeds from borrowings | 512,759 |  |  | 587,853 |
Repayment of borrowings | (563,120) |  |  | (378,914) |
Net change in repurchase agreements | (13,631) |  |  | 4,622 |
Net settlement of share awards | (840) |  |  | (1,204) |
Dividends paid on common stock | (21,282) |  |  | (21,256) |
Net cash provided by financing activities | $ | (23,992) |  |  | $ | 33,424 |
Net Change in Cash and Cash Equivalents | (291,681) |  |  | 51,632 |
Cash and Cash Equivalents, Beginning of Period | 526,515 |  |  | 123,505 |
Cash and Cash Equivalents, End of Period | $ | 234,834 |  |  | $ | 175,137 |
Additional Supplemental Information |  |  |
Interest paid | $ | 138,505 |  |  | $ | 84,403 |
Income taxes paid | 9,505 |  |  | 1,554 |
Transfer of loans to other real estate and repossessed assets | 1,845 |  |  | 2,342 |

See notes to condensed consolidated financial statements
8

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Note 1 - Accounting Policies
Reclassifications
Certain reclassifications have been made to the 2023 condensed consolidated financial statements to be comparable to 2024. These reclassifications were not material and had no effect on net income.
Revisions to Previously Issued Financial Statements
In connection with the preparation of its financial statements for the second quarter of 2024, management corrected a prior computation of the Company’s total capital (to risk-weighted assets), Tier 1 capital (to risk-weighted assets), and Tier 1 capital (to average assets) ratios for purposes of the Company’s consolidated financial statements for holding companies filed with the Federal Reserve (the “Regulatory Filings”), which involved an incorrect classification of the Company’s subordinated notes as Tier 1 capital. This incorrect classification affected the Company's regulatory capital disclosures in certain prior period filings with the SEC, as those disclosures were sourced from the Regulatory Filings. The Company evaluated the effects of the incorrect classification to its previously filed Regulatory Filings and previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon qualitative and quantitative factors, determined the errors were not material to the previously filed Regulatory Filings or the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2020, 2021, 2022 and 2023, or for any of the quarterly reports included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024. The Company has amended its Regulatory Filings for the periods ended March 31, 2024 and December 31, 2023 to reclassify the subordinated notes balance from Tier 1 capital into Tier 2 capital. The correction of the classification had no effect on the Company’s consolidated financial statements and related disclosures or the amounts or disclosure of the regulatory capital ratios of the Bank as included in its call reports. The Company continues to exceed regulatory proxy ratios to be considered “well capitalized”, plus the capital conservation buffer, at September 30, 2024.
Nature of Business and Basis of Reporting
The accompanying unaudited condensed consolidated financial statements include the accounts of Horizon Bancorp, Inc. (“Horizon” or the “Company”) and its wholly-owned subsidiaries, including Horizon Bank (“Horizon Bank” or the “Bank”), which is an Indiana commercial bank. All inter–company balances and transactions have been eliminated. The results of operations for the periods ended September 30, 2024 and September 30, 2023 are not necessarily indicative of the operating results for the full year of 2024 or 2023. The accompanying unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of Horizon’s management, necessary to fairly present the financial position, results of operations and cash flows of Horizon for the periods presented. Those adjustments consist only of normal recurring adjustments.
Certain information and note disclosures normally included in Horizon’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Horizon’s Annual Report on Form 10–K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission on March 15, 2024 (the “2023 Annual Report on Form 10–K”). The condensed consolidated balance sheet of Horizon as of December 31, 2023 has been derived from the audited balance sheet as of that date.
On July 16, 2019, the Board of Directors of the Company authorized a stock repurchase program for up to 2,250,000 shares of Horizon’s issued and outstanding common stock, no par value. As of September 30, 2024, Horizon had repurchased a total of 803,349 shares at an average price per share of $16.89.
Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted–average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
9

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table shows computation of basic and diluted earnings per share.

|  |  | Three Months Ended |  | Nine Months Ended
|  |  | September 30, |  | September 30, |  | September 30, |  | September 30,
(dollars in thousands, except per share data) |  |  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Basic earnings per share |  |  |  |  |  |  |  |  |  |  |
Net income |  |  |  |  | $ | 18,180 |  |  | $ | 16,205 |  |  | $ | 46,311 |  |  | $ | 53,196 |
Weighted average common shares outstanding |  |  |  |  | 43,712,059 |  |  | 43,646,609 |  |  | 43,695,968 |  |  | 43,623,614 |
Basic earnings per share |  |  |  |  | $ | 0.42 |  |  | $ | 0.37 |  |  | $ | 1.06 |  |  | $ | 1.22 |
Diluted earnings per share |  |  |  |  |  |  |  |  |  |  |
Net income |  |  |  |  | $ | 18,180 |  |  | $ | 16,205 |  |  | $ | 46,311 |  |  | $ | 53,196 |
Weighted average common shares outstanding |  |  |  |  | 43,712,059 |  |  | 43,646,609 |  |  | 43,695,968 |  |  | 43,623,614 |
Effect of dilutive securities: |  |  |  |  |  |  |  |  |  |  |
Restricted stock |  |  |  |  | 394,939 |  |  | 143,673 |  |  | 392,976 |  |  | 182,559 |
Stock options |  |  |  |  | 5,323 |  |  | 5,787 |  |  | 4,551 |  |  | 7,774 |
Weighted average common shares outstanding |  |  |  |  | 44,112,321 |  |  | 43,796,069 |  |  | 44,093,495 |  |  | 43,813,947 |
Diluted earnings per share |  |  |  |  | $ | 0.41 |  |  | $ | 0.37 |  |  | $ | 1.05 |  |  | $ | 1.21 |

There were 87,012 and 87,012 shares for the three and nine months ended September 30, 2024 which were not included in the computation of diluted earnings per share because they were non–dilutive. There were 665,063 and 624,189 shares for the three and nine months ended September 30, 2023 which were not included in the computation of diluted earnings per share because they were non–dilutive.
10

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Note 2 – Securities
The fair value of securities is as follows:

| September 30, 2024
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 69,421 |  |  | $ | — |  |  | $ | (6,176) |  |  | $ | 63,245 |
State and municipal | 351,507 |  |  | 14 |  |  | (45,496) |  |  | 306,025 |
Federal agency collateralized mortgage obligations | 3,413 |  |  | — |  |  | (261) |  |  | 3,152 |
Federal agency mortgage-backed pools | 151,844 |  |  | — |  |  | (19,148) |  |  | 132,696 |
Corporate notes | 40,559 |  |  | — |  |  | (4,507) |  |  | 36,052 |
Total available for sale investment securities | $ | 616,744 |  |  | $ | 14 |  |  | $ | (75,588) |  |  | $ | 541,170 |

| September 30, 2024
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Held to maturity |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 283,851 |  |  | $ | — |  |  | $ | (31,817) |  |  | $ | 252,034 |
State and municipal | 1,056,869 |  |  | 1,713 |  |  | (150,262) |  |  | 908,320 |
Federal agency collateralized mortgage obligations | 47,232 |  |  | — |  |  | (6,441) |  |  | 40,791 |
Federal agency mortgage-backed pools | 308,725 |  |  | — |  |  | (37,641) |  |  | 271,084 |
Private labeled mortgage-backed pools | 29,975 |  |  | — |  |  | (3,436) |  |  | 26,539 |
Corporate notes | 161,885 |  |  | — |  |  | (20,206) |  |  | 141,679 |
Total held to maturity investment securities | $ | 1,888,537 |  |  | $ | 1,713 |  |  | $ | (249,803) |  |  | $ | 1,640,447 |
Less: Allowance for credit losses | (158) |  |  |  |  |  |  |
Held to maturity securities, net of allowance for credit losses | $ | 1,888,379 |  |  |  |  |  |  |

| December 31, 2023
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 72,938 |  |  | $ | — |  |  | $ | (8,561) |  |  | $ | 64,377 |
State and municipal | 353,299 |  |  | — |  |  | (49,269) |  |  | 304,030 |
Federal agency collateralized mortgage obligations | 3,931 |  |  | — |  |  | (351) |  |  | 3,580 |
Federal agency mortgage-backed pools | 161,130 |  |  | — |  |  | (23,833) |  |  | 137,297 |
Corporate notes | 43,317 |  |  | 455 |  |  | (5,805) |  |  | 37,967 |
Total available for sale investment securities | $ | 634,615 |  |  | $ | 455 |  |  | $ | (87,819) |  |  | $ | 547,251 |

11

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

| December 31, 2023
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Held to maturity |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 287,259 |  |  | $ | — |  |  | $ | (41,299) |  |  | $ | 245,960 |
State and municipal | 1,088,499 |  |  | 1,185 |  |  | (150,323) |  |  | 939,361 |
Federal agency collateralized mortgage obligations | 51,325 |  |  | — |  |  | (7,846) |  |  | 43,479 |
Federal agency mortgage-backed pools | 323,649 |  |  | — |  |  | (48,621) |  |  | 275,028 |
Private labeled mortgage-backed pools | 32,329 |  |  | — |  |  | (4,595) |  |  | 27,734 |
Corporate notes | 162,734 |  |  | — |  |  | (25,538) |  |  | 137,196 |
Total held to maturity investment securities | $ | 1,945,795 |  |  | $ | 1,185 |  |  | $ | (278,222) |  |  | $ | 1,668,758 |
Less: Allowance for credit losses | (157) |  |  |  |  |  |  |
Held to maturity securities, net of allowance for credit losses | $ | 1,945,638 |  |  |  |  |  |  |

The amortized cost and fair value of securities available for sale and held to maturity at September 30, 2024 and December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

| September 30, 2024 |  | December 31, 2023
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Available for sale |  |  |  |  |  |  |
Within one year | $ | 448 |  |  | $ | 447 |  |  | $ | 5,505 |  |  | $ | 5,408 |
One to five years | 148,408 |  |  | 135,879 |  |  | 100,301 |  |  | 89,650 |
Five to ten years | 217,000 |  |  | 184,540 |  |  | 167,764 |  |  | 141,203 |
After ten years | 95,631 |  |  | 84,456 |  |  | 195,984 |  |  | 170,113 |
| 461,487 |  |  | 405,322 |  |  | 469,554 |  |  | 406,374 |
Federal agency collateralized mortgage obligations | 3,413 |  |  | 3,152 |  |  | 3,931 |  |  | 3,580 |
Federal agency mortgage–backed pools | 151,844 |  |  | 132,696 |  |  | 161,130 |  |  | 137,297 |
Total available for sale investment securities | $ | 616,744 |  |  | $ | 541,170 |  |  | $ | 634,615 |  |  | $ | 547,251 |
Held to maturity |  |  |  |  |  |  |
Within one year | $ | 49,801 |  |  | $ | 49,143 |  |  | $ | 33,483 |  |  | $ | 33,169 |
One to five years | 309,583 |  |  | 294,552 |  |  | 225,957 |  |  | 216,354 |
Five to ten years | 360,008 |  |  | 316,813 |  |  | 350,843 |  |  | 304,067 |
After ten years | 783,213 |  |  | 641,525 |  |  | 928,209 |  |  | 768,927 |
| 1,502,605 |  |  | 1,302,033 |  |  | 1,538,492 |  |  | 1,322,517 |
Federal agency collateralized mortgage obligations | 47,232 |  |  | 40,791 |  |  | 51,325 |  |  | 43,479 |
Federal agency mortgage–backed pools | 308,725 |  |  | 271,084 |  |  | 323,649 |  |  | 275,028 |
Private labeled mortgage–backed pools | 29,975 |  |  | 26,539 |  |  | 32,329 |  |  | 27,734 |
Total held to maturity investment securities | $ | 1,888,537 |  |  | $ | 1,640,447 |  |  | $ | 1,945,795 |  |  | $ | 1,668,758 |

As of September 30, 2024, investment securities with a fair value of $415.2 million were pledged as collateral against outstanding FHLB borrowings.
12

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following tables show the gross unrealized losses and the fair value of the Company’s available for sale investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

| September 30, 2024
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available for Sale Investment Securities |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 447 |  |  | $ | (1) |  |  | $ | 62,798 |  |  | $ | (6,175) |  |  | $ | 63,245 |  |  | $ | (6,176) |
State and municipal | 1,718 |  |  | (237) |  |  | 303,628 |  |  | (45,259) |  |  | 305,346 |  |  | (45,496) |
Federal agency collateralized mortgage obligations | — |  |  | — |  |  | 3,152 |  |  | (261) |  |  | 3,152 |  |  | (261) |
Federal agency mortgage–backed pools | — |  |  | — |  |  | 132,696 |  |  | (19,148) |  |  | 132,696 |  |  | (19,148) |
Corporate notes | — |  |  | — |  |  | 36,052 |  |  | (4,507) |  |  | 36,052 |  |  | (4,507) |
Total available for sale investment securities | $ | 2,165 |  |  | $ | (238) |  |  | $ | 538,326 |  |  | $ | (75,350) |  |  | $ | 540,491 |  |  | $ | (75,588) |

| December 31, 2023
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available for Sale Investment Securities |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | — |  |  | $ | — |  |  | $ | 64,377 |  |  | $ | (8,561) |  |  | $ | 64,377 |  |  | $ | (8,561) |
State and municipal | 2,387 |  |  | (236) |  |  | 301,643 |  |  | (49,033) |  |  | 304,030 |  |  | (49,269) |
Federal agency collateralized mortgage obligations | — |  |  | — |  |  | 3,580 |  |  | (351) |  |  | 3,580 |  |  | (351) |
Federal agency mortgage–backed pools | — |  |  | — |  |  | 137,289 |  |  | (23,833) |  |  | 137,289 |  |  | (23,833) |
Corporate notes | — |  |  | — |  |  | 36,359 |  |  | (5,805) |  |  | 36,359 |  |  | (5,805) |
Total available for sale investment securities | $ | 2,387 |  |  | $ | (236) |  |  | $ | 543,248 |  |  | $ | (87,583) |  |  | $ | 545,635 |  |  | $ | (87,819) |

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. As of September 30, 2024 and December 31, 2023, the Company had 2,338 and 2,290 securities, respectively, with market values below their cost basis. The total fair value of these investments at September 30, 2024 and December 31, 2023 was $2.2 billion and $2.1 billion, which is approximately 89.7% and 85.1%, respectively, of the Company's available for sale and held to maturity securities portfolio. These declines resulted primarily from fluctuations in market interest rates after purchase. Management believes the declines in fair value for these securities are temporary.
No allowance for credit losses for available for sale debt securities was recorded at September 30, 2024 or December 31, 2023.
The allowance for credit losses for held to maturity securities is a contra asset valuation account that is deducted from the carrying amount of held to maturity securities to present the net amount expected to be collected. Held to maturity securities are charged off against the allowance for credit loss when deemed uncollectible. Adjustments to the allowance for credit loss are reported in our Condensed Consolidated Statements of Income in credit loss expense. We measure expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and consider historical credit loss information that is adjusted for current conditions and reasonable and
13

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
supportable forecasts. With regard to U.S. Government-sponsored treasuries, agency and mortgage-backed securities, all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to obligations of states and municipal, private label mortgage-backed and corporate note held to maturity securities, we consider (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. As of September 30, 2024 and December 31, 2023, there were no past due principal and interest payments associated with these securities. An allowance for credit loss of $158,000 and $157,000 was recorded on these securities based on applying the long-term historical rating agency credit loss rate for similarly rated securities at September 30, 2024 and December 31, 2023, respectively.
On a quarterly basis, the Company refreshes the credit quality indicator of each held-to-maturity security. The Company applies ratings derived from Nationally Recognized Statistical Rating Organizations ("NRSRO"), specifically Moody's and Standard & Poor's. For state and municipal securities where no rating is available from the NRSROs, a consistent internally-assigned rating methodology is applied. The amortized cost of these securities in the following tables subject to this methodology totaled $132.5 million as of September 30, 2024, and $143.7 million as of December 31, 2023.
The following table summarizes credit ratings of our held-to-maturity securities at amortized cost for the periods indicated:

September 30, 2024 | AAA |  | AA |  | A |  | BBB |  | BB |  | Not Rated |  | Total
U.S. Treasury and federal agencies | $ | — |  |  | $ | 283,851 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 283,851 |
State and municipal | 253,333 |  |  | 689,162 |  |  | 112,192 |  |  | 2,182 |  |  | — |  |  | — |  |  | 1,056,869 |
Federal agency collateralized mortgage obligations | 47,232 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 47,232 |
Federal agency mortgage-backed pools | 308,725 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 308,725 |
Private labeled mortgage-backed pools | 29,975 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 29,975 |
Corporate notes | — |  |  | 6,184 |  |  | 11,620 |  |  | 75,765 |  |  | 4,546 |  |  | 63,770 |  |  | 161,885 |
Total | $ | 639,265 |  |  | $ | 979,197 |  |  | $ | 123,812 |  |  | $ | 77,947 |  |  | $ | 4,546 |  |  | $ | 63,770 |  |  | $ | 1,888,537 |
December 31, 2023 | AAA |  | AA |  | A |  | BBB |  | BB |  | Not Rated |  | Total
U.S. Treasury and federal agencies | $ | — |  |  | $ | 287,259 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 287,259 |
State and municipal | 285,748 |  |  | 730,907 |  |  | 69,658 |  |  | 2,186 |  |  | — |  |  | — |  |  | 1,088,499 |
Federal agency collateralized mortgage obligations | 51,325 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 51,325 |
Federal agency mortgage-backed pools | 323,649 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 323,649 |
Private labeled mortgage-backed pools | 32,329 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32,329 |
Corporate notes | — |  |  | 4,260 |  |  | 11,831 |  |  | 78,197 |  |  | 4,556 |  |  | 63,890 |  |  | 162,734 |
Total | $ | 693,051 |  |  | $ | 1,022,426 |  |  | $ | 81,489 |  |  | $ | 80,383 |  |  | $ | 4,556 |  |  | $ | 63,890 |  |  | $ | 1,945,795 |

14

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table details activity in the allowance for credit losses on held-to-maturity securities during the three and nine months ended September 30, 2024 and 2023.

| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Beginning balance | $ | 158 |  |  | $ | 164 |  |  | $ | 157 |  |  | $ | 257 |
Credit loss expense (benefit) | — |  |  | (5) |  |  | 1 |  |  | (98) |
Ending balance | $ | 158 |  |  | $ | 159 |  |  | $ | 158 |  |  | $ | 159 |

Accrued interest receivable on available for sale debt securities and held to maturity secur ities totaled $13.8 million at September 30, 2024 and $14.7 million at December 31, 2023 and is excluded from the estimate of credit losses.
The U.S. government sponsored entities and agencies and mortgage–backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses.
Based on an evaluation of available evidence, management believes the unrealized losses on available for sale state and municipal securities, private labeled mortgage–backed pools and corporate notes were due to changes in interest rates. Due to the contractual terms, the issuers of state and municipal securities are not allowed to settle for less than the amortized cost of the security. In addition, the Company does not intend to sell these securities prior to the recovery of the amortized cost, which may not occur until maturity. No allowance for credit losses was recognized for available for sale debt securities at September 30, 2024 and December 31, 2023.
Information regarding security proceeds, gross gains and gross losses, based on specific identification method, are presented below.

|  |  | Three Months Ended |  | Nine Months Ended
|  |  |  |  | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Sales of securities available for sale |  |  |  |  |  |  |  |  |  |  |
Proceeds |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 88,194 |
Gross gains |  |  |  |  | — |  |  | — |  |  | — |  |  | 215 |
Gross losses |  |  |  |  | — |  |  | — |  |  | — |  |  | (695) |

15

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Note 3 – Loans
The table below identifies the Company’s loan portfolio segments and classes.

Portfolio Segment |  | Class of Financing Receivable
Commercial |  | Owner occupied real estate
|  | Non-owner occupied real estate
|  | Residential spec homes
|  | Development & spec land
|  | Commercial and industrial
Real estate |  | Residential mortgage
|  | Residential construction
Mortgage warehouse |  | Mortgage warehouse
Consumer |  | Installment
|  | Indirect auto
|  | Home equity

Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity’s method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan.
The following table presents total loans outstanding by portfolio class, as of September 30, 2024 and December 31, 2023:

| September 30, 2024 |  | December 31, 2023
Commercial |  |  |
Owner occupied real estate | $ | 634,470 |  |  | $ | 640,731 |
Non–owner occupied real estate | 1,424,248 |  |  | 1,273,838 |
Residential spec homes | 16,447 |  |  | 13,489 |
Development & spec land | 30,294 |  |  | 34,039 |
Commercial and industrial | 808,600 |  |  | 712,863 |
Total commercial | 2,914,059 |  |  | 2,674,960 |
Real estate |  |  |
Residential mortgage | 783,957 |  |  | 654,295 |
Residential construction | 17,399 |  |  | 26,841 |
Mortgage warehouse | 80,437 |  |  | 45,078 |
Total real estate | 881,793 |  |  | 726,214 |
Consumer |  |  |
Installment | 101,554 |  |  | 52,366 |
Indirect auto | 341,979 |  |  | 399,946 |
Home equity | 564,611 |  |  | 564,144 |
Total consumer | 1,008,144 |  |  | 1,016,456 |
Total loans | 4,803,996 |  |  | 4,417,630 |
Allowance for credit losses | (52,881) |  |  | (50,029) |
Net loans | $ | 4,751,115 |  |  | $ | 4,367,601 |

Total loans include net deferred loan costs of $19.1 million at September 30, 2024 and $21.9 million at December 31, 2023, respectively.
16

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Non–performing Loans
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at September 30, 2024:

| September 30, 2024
| Non–accrual |  | Loans Past Due Over 90 Days Still Accruing |  | Non–accruing Loans with no Allowance for Credit Losses
Commercial |  |  |  |  |
Owner occupied real estate | $ | 3,854 |  |  | $ | — |  |  | $ | 2,976 |
Non–owner occupied real estate | 456 |  |  | — |  |  | 456 |
Residential spec homes | — |  |  | — |  |  | — |
Development & spec land | 574 |  |  | — |  |  | 574 |
Commercial and industrial | 1,946 |  |  | — |  |  | 949 |
Total commercial | 6,830 |  |  | — |  |  | 4,955 |
Real estate |  |  |  |  |
Residential mortgage | 9,529 |  |  | 71 |  |  | — |
Residential construction | — |  |  | — |  |  | — |
Mortgage warehouse | — |  |  | — |  |  | — |
Total real estate | 9,529 |  |  | 71 |  |  | — |
Consumer |  |  |  |  |
Installment | 371 |  |  | 27 |  |  | — |
Indirect auto | 1,304 |  |  | 228 |  |  | — |
Home equity | 5,533 |  |  | 493 |  |  | — |
Total consumer | 7,208 |  |  | 748 |  |  | — |
Total | $ | 23,567 |  |  | $ | 819 |  |  | $ | 4,955 |

17

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loan at December 31, 2023:

| December 31, 2023
| Non–accrual |  | Loans Past Due Over 90 Days Still Accruing |  | Non–accruing Loans with no Allowance for Credit Losses
Commercial |  |  |  |  |
Owner occupied real estate | $ | 2,636 |  |  | $ | — |  |  | $ | 1,789 |
Non–owner occupied real estate | 3,485 |  |  | — |  |  | 1,242 |
Residential spec homes | — |  |  | — |  |  | — |
Development & spec land | 617 |  |  | — |  |  | 617 |
Commercial and industrial | 624 |  |  | — |  |  | 20 |
Total commercial | 7,362 |  |  | — |  |  | 3,668 |
Real estate |  |  |  |  |
Residential mortgage | 8,058 |  |  | — |  |  | — |
Residential construction | — |  |  | — |  |  | — |
Mortgage warehouse | — |  |  | — |  |  | — |
Total real estate | 8,058 |  |  | — |  |  | — |
Consumer |  |  |  |  |
Installment | 88 |  |  | — |  |  | — |
Indirect auto | 899 |  |  | 299 |  |  | — |
Home equity | 3,303 |  |  | 260 |  |  | — |
Total consumer | 4,290 |  |  | 559 |  |  | — |
Total | $ | 19,710 |  |  | $ | 559 |  |  | $ | 3,668 |

There was no interest income recognized on non-accrual loans during the three and nine months ended September 30, 2024 and 2023, respectively, while the loans were in non-accrual status.
The amount of accrued interest receivable written off by the Company by reversing interest income was not material for the three and nine months ended September 30, 2024 and September 30, 2023, respectively.
18

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table presents the payment status by class of loan at September 30, 2024:

| September 30, 2024
| Current |  | 30–59 Days Past Due |  | 60–89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due Loans |  | Total Loans
Commercial |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 630,542 |  |  | $ | 806 |  |  | $ | 1,782 |  |  | $ | 1,340 |  |  | $ | 3,928 |  |  | $ | 634,470 |
Non–owner occupied real estate | 1,423,495 |  |  | 150 |  |  | 302 |  |  | 301 |  |  | 753 |  |  | 1,424,248 |
Residential spec homes | 16,447 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,447 |
Development & spec land | 30,294 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 30,294 |
Commercial and industrial | 806,547 |  |  | 579 |  |  | 126 |  |  | 1,348 |  |  | 2,053 |  |  | 808,600 |
Total commercial | 2,907,325 |  |  | 1,535 |  |  | 2,210 |  |  | 2,989 |  |  | 6,734 |  |  | 2,914,059 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 775,653 |  |  | 89 |  |  | 3,130 |  |  | 5,085 |  |  | 8,304 |  |  | 783,957 |
Residential construction | 17,399 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,399 |
Mortgage warehouse | 80,437 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 80,437 |
Total real estate | 873,489 |  |  | 89 |  |  | 3,130 |  |  | 5,085 |  |  | 8,304 |  |  | 881,793 |
Consumer |  |  |  |  |  |  |  |  |  |  |
Installment | 100,294 |  |  | 821 |  |  | 167 |  |  | 272 |  |  | 1,260 |  |  | 101,554 |
Indirect auto | 336,038 |  |  | 4,310 |  |  | 971 |  |  | 660 |  |  | 5,941 |  |  | 341,979 |
Home equity | 552,498 |  |  | 6,170 |  |  | 2,246 |  |  | 3,697 |  |  | 12,113 |  |  | 564,611 |
Total consumer | 988,830 |  |  | 11,301 |  |  | 3,384 |  |  | 4,629 |  |  | 19,314 |  |  | 1,008,144 |
Total | $ | 4,769,644 |  |  | $ | 12,925 |  |  | $ | 8,724 |  |  | $ | 12,703 |  |  | $ | 34,352 |  |  | $ | 4,803,996 |

19

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table presents the payment status by class of loan at December 31, 2023:

| December 31, 2023
| Current |  | 30–59 Days Past Due |  | 60–89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due Loans |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 638,389 |  |  | $ | 2,342 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,342 |  |  | $ | 640,731 |
Non–owner occupied real estate | 1,273,791 |  |  | — |  |  | — |  |  | 47 |  |  | 47 |  |  | 1,273,838 |
Residential spec homes | 13,489 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,489 |
Development & spec land | 33,036 |  |  | — |  |  | 1,003 |  |  | — |  |  | 1,003 |  |  | 34,039 |
Commercial and industrial | 710,567 |  |  | 1,659 |  |  | 54 |  |  | 583 |  |  | 2,296 |  |  | 712,863 |
Total commercial | 2,669,272 |  |  | 4,001 |  |  | 1,057 |  |  | 630 |  |  | 5,688 |  |  | 2,674,960 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 646,984 |  |  | 2,823 |  |  | 2,353 |  |  | 2,135 |  |  | 7,311 |  |  | 654,295 |
Residential construction | 26,841 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 26,841 |
Mortgage warehouse | 45,078 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 45,078 |
Total real estate | 718,903 |  |  | 2,823 |  |  | 2,353 |  |  | 2,135 |  |  | 7,311 |  |  | 726,214 |
Consumer |  |  |  |  |  |  |  |  |  |  |
Installment | 52,001 |  |  | 304 |  |  | 10 |  |  | 51 |  |  | 365 |  |  | 52,366 |
Indirect auto | 393,615 |  |  | 4,958 |  |  | 736 |  |  | 637 |  |  | 6,331 |  |  | 399,946 |
Home equity | 558,062 |  |  | 3,748 |  |  | 1,217 |  |  | 1,117 |  |  | 6,082 |  |  | 564,144 |
Total consumer | 1,003,678 |  |  | 9,010 |  |  | 1,963 |  |  | 1,805 |  |  | 12,778 |  |  | 1,016,456 |
Total | $ | 4,391,853 |  |  | $ | 15,834 |  |  | $ | 5,373 |  |  | $ | 4,570 |  |  | $ | 25,777 |  |  | $ | 4,417,630 |

The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.
Modified Loans
The following tables detail the amortized cost at September 30, 2024 of loans that were modified to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and the amortized cost at September 30, 2023, of loans that were modified to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023:

| Three Months Ended September 30, 2024
| Principal Forgiveness |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  | Multiple 1 |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | — |  |  | $ | 2,038 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,038 |  |  | 0.3 | %
Commercial and industrial | — |  |  | 1,111 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,111 |  |  | 0.1 | %
Total | $ | — |  |  | $ | 3,149 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,149 |  |  | 0.1 | %
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

20

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

| Nine Months Ended September 30, 2024
| Principal Forgiveness |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  | Multiple 1 |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | — |  |  | $ | 3,986 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,986 |  |  | 0.6 | %
Non–owner occupied real estate | — |  |  | 1,720 |  |  | — |  |  | 651 |  |  | — |  |  | — |  |  | 2,371 |  |  | 0.2 | %
Commercial and industrial | — |  |  | 2,205 |  |  | — |  |  | — |  |  | 437 |  |  | — |  |  | 2,642 |  |  | 0.3 | %
Total | $ | — |  |  | $ | 7,911 |  |  | $ | — |  |  | $ | 651 |  |  | $ | 437 |  |  | $ | — |  |  | $ | 8,999 |  |  | 0.3 | %
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

| Three Months Ended September 30, 2023
| Principal Forgiveness |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  | Multiple 1 |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | — |  |  | $ | 2,082 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,082 |  |  | 0.3 | %
Commercial and industrial | — |  |  | 1,278 |  |  | — |  |  | — |  |  | 171 |  |  | 69 |  |  | 1,518 |  |  | 0.2 | %
Total | $ | — |  |  | $ | 3,360 |  |  | $ | — |  |  | $ | — |  |  | $ | 171 |  |  | $ | 69 |  |  | $ | 3,600 |  |  | 0.1 | %
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

| Nine Months Ended September 30, 2023
| Principal Forgiveness |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  | Multiple 1 |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | — |  |  | $ | 2,762 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,762 |  |  | 0.4 | %
Commercial and industrial | — |  |  | 1,347 |  |  | — |  |  | — |  |  | 1,243 |  |  | 165 |  |  | 2,755 |  |  | 0.3 | %
Total | $ | — |  |  | $ | 4,109 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,243 |  |  | $ | 165 |  |  | $ | 5,517 |  |  | 0.2 | %
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

The following tables summarize the financial impacts of loan modifications and payment deferrals, as applicable, during the three and nine months ended September 30, 2024 and September 30, 2023:
21

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

|  | Three Months Ended September 30, 2024
|  | Weighted Average Term Extension (In Months) | Weighted Average Payment Delay (In Months) |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial |  |  |  |  |
Owner occupied real estate |  | 6 | — |  |  | — |
Commercial and industrial |  | 21 | — |  |  | — |

|  | Nine Months Ended September 30, 2024
|  | Weighted Average Term Extension (In Months) | Weighted Average Payment Delay (In Months) |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial |  |  |  |  |
Owner occupied real estate |  | 7 | — |  |  | — |
Non–owner occupied real estate |  | 15 | 5 |  | — |
Commercial and industrial |  | 15 | — |  |  | Weighted average term extension of 14 months & Weighted-average interest rate reduction of 2.03%

|  | Three Months Ended September 30, 2023
|  | Weighted Average Term Extension (In Months) |  |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms) | Multiple 1
Commercial |  |  |  |  |  |
Owner occupied real estate |  | 6 |  |  | — |  | — |
Commercial and industrial |  | 4 |  |  | Weighted average term extension of 96 months and weighted average rate reduction of 1.95% | Weighted Average term extension of 36 months and weighted average payment delay of 4 months
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

|  | Nine Months Ended September 30, 2023
|  | Weighted Average Term Extension (In Months) |  |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms) | Multiple 1
Commercial |  |  |  |  |  |
Owner occupied real estate |  | 15 |  |  | — |  | — |
Commercial and industrial |  | 6 |  |  | Weighted average term extension of 75 months and weighted average rate reduction of 1.04% | Weighted Average term extension of 40 months and weighted average payment delay of 7 months
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

The financial impacts of the modifications did not significantly impact our determination of the allowance for credit losses during the periods presented above.
The Company had commitments to commercial and industrial borrowers of $0.3 million and $0.1 million at September 30, 2024 and December 31, 2023, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans in the form of an interest rate reduction; an other-than-insignificant payment delay; forgiveness of principal, or a term extension during the current reporting period.
22

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table presents the amortized cost basis at September 30, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:

| September 30, 2024
| Current |  | 30-89 Days Past Due |  | 90 Days Past Due |  | Total
Commercial |  |  |  |  |  |  |
Owner occupied real estate | $ | 3,986 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,986 |
Non–owner occupied real estate | 2,371 |  |  | — |  |  | — |  |  | 2,371 |
Commercial and industrial | 2,641 |  |  | — |  |  | — |  |  | 2,641 |
Total commercial | 8,998 |  |  | — |  |  | — |  |  | 8,998 |
Total | $ | 8,998 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,998 |

The following table presents the amortized cost basis at September 30, 2023 of loans to borrowers experiencing financial difficulty that had been modified on or after January 1, 2023 (the date we adopted ASU 2022-02) through September 30, 2023:

| September 30, 2023
| Current |  | 30-89 Days Past Due |  | 90 Days Past Due |  | Total
Commercial |  |  |  |  |  |  |
Owner occupied real estate | $ | 2,762 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,762 |
Commercial and industrial | 2,755 |  |  | — |  |  | — |  |  | 2,755 |
Total | $ | 5,517 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,517 |

The Company did not have any loans to borrowers experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2024 and were modified within the twelve months prior to the payment default. For purposes of this disclosure, the Company considers “default” to mean 30 days or more past due of contractual interest or principal.
The Company did not have any loans to borrowers experiencing financial difficulty that had a payment default during the three and nine month ended September 30, 2023 and had been modified on or after January 1, 2023 (date the Company adopted ASU 2022-02).
Collateral Dependent Financial Assets
A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent.
The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at September 30, 2024 and December 31, 2023.
23

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

| September 30, 2024
| Real Estate |  | Accounts Receivable/Equipment |  | Other |  | Total (1) |  | ACL Allocation
Commercial |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 3,854 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,854 |  |  | $ | 234 |
Non–owner occupied real estate | 456 |  |  | — |  |  | — |  |  | 456 |  |  | — |
Residential spec homes | — |  |  | — |  |  | — |  |  | — |  |  | — |
Development & spec land | 574 |  |  | — |  |  | — |  |  | 574 |  |  | — |
Commercial and industrial | 1,437 |  |  | 509 |  |  | — |  |  | 1,946 |  |  | 799 |
Total commercial | 6,321 |  |  | 509 |  |  | — |  |  | 6,830 |  |  | 1,033 |
Total collateral dependent loans | $ | 6,321 |  |  | $ | 509 |  |  | $ | — |  |  | $ | 6,830 |  |  | $ | 1,033 |
(1) Collateral dependent loans had a collateral fair value of $3.0 million at September 30, 2024

| December 31, 2023
| Real Estate |  | Accounts Receivable/Equipment |  | Other |  | Total (1) |  | ACL Allocation
Commercial |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 2,636 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,636 |  |  | $ | 190 |
Non–owner occupied real estate | 3,485 |  |  | — |  |  | — |  |  | 3,485 |  |  | 699 |
Residential spec homes | — |  |  | — |  |  | — |  |  | — |  |  | — |
Development & spec land | 617 |  |  | — |  |  | — |  |  | 617 |  |  | — |
Commercial and industrial | 563 |  |  | 42 |  |  | 20 |  |  | 625 |  |  | 604 |
Total commercial | 7,301 |  |  | 42 |  |  | 20 |  |  | 7,363 |  |  | 1,493 |
Total collateral dependent loans | $ | 7,301 |  |  | $ | 42 |  |  | $ | 20 |  |  | $ | 7,363 |  |  | $ | 1,493 |
(1) Collateral dependent loans had a collateral fair value of $6.3 million at December 31, 2023

As of September 30, 2024, the Company had a carrying value of $1.2 million of repossessed assets. As of September 30, 2024, the Company had a recorded net investment of $0.6 million o f consumer mortgage loans in which foreclosure proceedings have commenced.
Credit Quality Indicators
Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re–evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the credit quality grade.
•For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $3,000,000 to $6,000,000) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”).
•Commercial loan officers are responsible for reviewing their loan portfolios and promptly assessing any adverse change in credit quality and revising the risk rating appropriately. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the Credit Department of the change in the credit quality grade. Downgrades are accepted immediately, however, lenders must present their factual information to the Credit Department when recommending an upgrade. Downgrades to impaired status require the concurrence of the CCBO and the Senior Workout Loan Manager.
•The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and
24

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade.
•Monthly, senior management meets as members of the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, loan modifications, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Credit Losses on Loans and Leases.
For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non–accrual, or are classified as modified loans are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non–accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass.
Horizon Bank employs a nine–grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below.
Risk Grade 1: Excellent (Pass)
Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long–term debt rating of A or better and meeting defined key financial metric ranges.
Risk Grade 2: Good (Pass)
Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three years consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities with required margins where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit histories; or loans to publicly held companies with current long–term debt ratings of Baa or better and meeting defined key financial metric ranges.
Risk Grade 3: Satisfactory (Pass)
Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply:
•At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory;
•At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss.
•The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance.
•During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted.
Risk Grade 4: Satisfactory/Monitored (Pass)
25

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization.
Risk Grade 4W: Management Watch (Pass)
Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized.
Risk Grade 5: Special Mention
Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges.
Risk Grade 6: Substandard
One or more of the following characteristics may be exhibited in loans classified Substandard:
•Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss.
•Loans are inadequately protected by the current net worth and paying capacity of the obligor.
•The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees.
•Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.
•Unusual courses of action are needed to maintain a high probability of repayment.
•The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments.
•The lender is forced into a subordinated or unsecured position due to flaws in documentation.
•Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms.
•The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.
•There is a significant deterioration in market conditions to which the borrower is highly vulnerable.
•The borrower meets defined key financial metric ranges.
Risk Grade 7: Doubtful
One or more of the following characteristics may be present in loans classified Doubtful:
•Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable.
26

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
•The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.
•The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known.
•The borrower meets defined key financial metric ranges.
Risk Grade 8: Loss
Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.
27

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following tables present loans by credit grades and origination year at September 30, 2024.

September 30, 2024 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 45,932 |  |  | $ | 71,649 |  |  | $ | 91,609 |  |  | $ | 68,549 |  |  | $ | 38,369 |  |  | $ | 186,270 |  |  | $ | 79,812 |  |  | $ | 10,369 |  |  | $ | 592,559 |
Special Mention |  | 128 |  |  | 222 |  |  | 2,217 |  |  | 3,657 |  |  | 143 |  |  | 9,316 |  |  | — |  |  | 451 |  |  | 16,134 |
Substandard |  | 552 |  |  | 8,574 |  |  | 1,056 |  |  | 6,346 |  |  | — |  |  | 8,749 |  |  | — |  |  | 500 |  |  | 25,777 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total owner occupied real estate |  | $ | 46,612 |  |  | $ | 80,445 |  |  | $ | 94,882 |  |  | $ | 78,552 |  |  | $ | 38,512 |  |  | $ | 204,335 |  |  | $ | 79,812 |  |  | $ | 11,320 |  |  | $ | 634,470 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Non–owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 138,309 |  |  | $ | 118,039 |  |  | $ | 223,155 |  |  | $ | 136,689 |  |  | $ | 102,129 |  |  | $ | 356,777 |  |  | $ | 274,678 |  |  | $ | 12,486 |  |  | $ | 1,362,262 |
Special Mention |  | — |  |  | 1,344 |  |  | 19,090 |  |  | 1,270 |  |  | — |  |  | 37,481 |  |  | — |  |  | — |  |  | 59,185 |
Substandard |  | 84 |  |  | 302 |  |  | — |  |  | — |  |  | 137 |  |  | 2,278 |  |  | — |  |  | — |  |  | 2,801 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total non–owner occupied real estate |  | $ | 138,393 |  |  | $ | 119,685 |  |  | $ | 242,245 |  |  | $ | 137,959 |  |  | $ | 102,266 |  |  | $ | 396,536 |  |  | $ | 274,678 |  |  | $ | 12,486 |  |  | $ | 1,424,248 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Residential spec homes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 364 |  |  | $ | 500 |  |  | $ | — |  |  | $ | 420 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,932 |  |  | $ | 8,231 |  |  | $ | 16,447 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential spec homes |  | $ | 364 |  |  | $ | 500 |  |  | $ | — |  |  | $ | 420 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,932 |  |  | $ | 8,231 |  |  | $ | 16,447 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Development & spec land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 721 |  |  | $ | 4,152 |  |  | $ | 796 |  |  | $ | 119 |  |  | $ | 343 |  |  | $ | 1,986 |  |  | $ | 20,894 |  |  | $ | 292 |  |  | $ | 29,303 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 320 |  |  | — |  |  | — |  |  | 320 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 97 |  |  | 574 |  |  | — |  |  | 671 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total development & spec land |  | $ | 721 |  |  | $ | 4,152 |  |  | $ | 796 |  |  | $ | 119 |  |  | $ | 343 |  |  | $ | 2,403 |  |  | $ | 21,468 |  |  | $ | 292 |  |  | $ | 30,294 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 148,245 |  |  | $ | 108,640 |  |  | $ | 133,693 |  |  | $ | 77,002 |  |  | $ | 8,122 |  |  | $ | 66,359 |  |  | $ | 54,988 |  |  | $ | 169,710 |  |  | $ | 766,759 |
Special Mention |  | 1,043 |  |  | 905 |  |  | 1,235 |  |  | 28 |  |  | 907 |  |  | 1,556 |  |  | 10,249 |  |  | 12,948 |  |  | 28,871 |
Substandard |  | 191 |  |  | 1,813 |  |  | 853 |  |  | 365 |  |  | 292 |  |  | 3,780 |  |  | 1,325 |  |  | 4,351 |  |  | 12,970 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial & industrial |  | $ | 149,479 |  |  | $ | 111,358 |  |  | $ | 135,781 |  |  | $ | 77,395 |  |  | $ | 9,321 |  |  | $ | 71,695 |  |  | $ | 66,562 |  |  | $ | 187,009 |  |  | $ | 808,600 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 40 |  |  | $ | 108 |  |  | $ | — |  |  | $ | 148 |

28

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

September 30, 2024 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 52,449 |  |  | $ | 149,467 |  |  | $ | 163,825 |  |  | $ | 142,833 |  |  | $ | 80,086 |  |  | $ | 185,697 |  |  | $ | — |  |  | $ | — |  |  | $ | 774,357 |
Non–performing |  | — |  |  | 925 |  |  | 1,965 |  |  | 1,190 |  |  | 342 |  |  | 5,178 |  |  | — |  |  | — |  |  | 9,600 |
Total residential mortgage |  | $ | 52,449 |  |  | $ | 150,392 |  |  | $ | 165,790 |  |  | $ | 144,023 |  |  | $ | 80,428 |  |  | $ | 190,875 |  |  | $ | — |  |  | $ | — |  |  | $ | 783,957 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |
Residential construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 17,359 |  |  | $ | 40 |  |  | $ | 17,399 |
Non–performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 17,359 |  |  | $ | 40 |  |  | $ | 17,399 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Mortgage warehouse |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 80,437 |  |  | $ | 80,437 |
Non–performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total mortgage warehouse |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 80,437 |  |  | $ | 80,437 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |

September 30, 2024 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 9,771 |  |  | $ | 63,461 |  |  | $ | 10,359 |  |  | $ | 5,899 |  |  | $ | 3,010 |  |  | $ | 6,719 |  |  | $ | 5 |  |  | $ | 1,932 |  |  | $ | 101,156 |
Non–performing |  | — |  |  | 302 |  |  | 23 |  |  | 52 |  |  | — |  |  | 21 |  |  | — |  |  | — |  |  | 398 |
Total installment |  | $ | 9,771 |  |  | $ | 63,763 |  |  | $ | 10,382 |  |  | $ | 5,951 |  |  | $ | 3,010 |  |  | $ | 6,740 |  |  | $ | 5 |  |  | $ | 1,932 |  |  | $ | 101,554 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | 66 |  |  | $ | 59 |  |  | $ | 166 |  |  | $ | 1 |  |  | $ | 35 |  |  | $ | 22 |  |  | $ | 8 |  |  | $ | — |  |  | $ | 357 |
Indirect auto |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 29,177 |  |  | $ | 76,552 |  |  | $ | 145,560 |  |  | $ | 57,303 |  |  | $ | 21,587 |  |  | $ | 10,268 |  |  | $ | — |  |  | $ | — |  |  | $ | 340,447 |
Non–performing |  | 120 |  |  | 237 |  |  | 601 |  |  | 227 |  |  | 213 |  |  | 134 |  |  | — |  |  | — |  |  | 1,532 |
Total indirect auto |  | $ | 29,297 |  |  | $ | 76,789 |  |  | $ | 146,161 |  |  | $ | 57,530 |  |  | $ | 21,800 |  |  | $ | 10,402 |  |  | $ | — |  |  | $ | — |  |  | $ | 341,979 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | 227 |  |  | $ | 852 |  |  | $ | 330 |  |  | $ | 125 |  |  | $ | 80 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,614 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 10,936 |  |  | $ | 23,248 |  |  | $ | 17,222 |  |  | $ | 5,498 |  |  | $ | 1,992 |  |  | $ | 10,142 |  |  | $ | 18,999 |  |  | $ | 470,548 |  |  | $ | 558,585 |
Non–performing |  | — |  |  | 190 |  |  | 318 |  |  | — |  |  | 31 |  |  | 324 |  |  | 5,163 |  |  | — |  |  | 6,026 |
Total home equity |  | $ | 10,936 |  |  | $ | 23,438 |  |  | $ | 17,540 |  |  | $ | 5,498 |  |  | $ | 2,023 |  |  | $ | 10,466 |  |  | $ | 24,162 |  |  | $ | 470,548 |  |  | $ | 564,611 |
Gross charge–offs for the nine months ended September 30, 2024 |  | $ | — |  |  | $ | 25 |  |  | $ | 52 |  |  | $ | 88 |  |  | $ | — |  |  | $ | 39 |  |  | $ | 109 |  |  | $ | 11 |  |  | $ | 324 |

29

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following tables present loans by credit grades and origination year at December 31, 2023.

December 31, 2023 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 66,814 |  |  | $ | 101,620 |  |  | $ | 73,199 |  |  | $ | 44,067 |  |  | $ | 41,726 |  |  | $ | 173,913 |  |  | $ | 93,432 |  |  | $ | 8,226 |  |  | $ | 602,997 |
Special Mention |  | 3,920 |  |  | 490 |  |  | 3,777 |  |  | — |  |  | 2,038 |  |  | 8,128 |  |  | — |  |  | 452 |  |  | 18,805 |
Substandard |  | 1,376 |  |  | — |  |  | 6,490 |  |  | 966 |  |  | 228 |  |  | 9,339 |  |  | 530 |  |  | — |  |  | 18,929 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total owner occupied real estate |  | $ | 72,110 |  |  | $ | 102,110 |  |  | $ | 83,466 |  |  | $ | 45,033 |  |  | $ | 43,992 |  |  | $ | 191,380 |  |  | $ | 93,962 |  |  | $ | 8,678 |  |  | $ | 640,731 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | 401 |  |  | $ | — |  |  | $ | 416 |
Non–owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 116,031 |  |  | $ | 197,702 |  |  | $ | 149,540 |  |  | $ | 104,591 |  |  | $ | 83,394 |  |  | $ | 303,191 |  |  | $ | 246,569 |  |  | $ | 9,878 |  |  | $ | 1,210,896 |
Special Mention |  | 1,366 |  |  | 16,135 |  |  | 1,334 |  |  | 254 |  |  | 845 |  |  | 36,590 |  |  | — |  |  | — |  |  | 56,524 |
Substandard |  | — |  |  | — |  |  | — |  |  | 185 |  |  | — |  |  | 6,233 |  |  | — |  |  | — |  |  | 6,418 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total non–owner occupied real estate |  | $ | 117,397 |  |  | $ | 213,837 |  |  | $ | 150,874 |  |  | $ | 105,030 |  |  | $ | 84,239 |  |  | $ | 346,014 |  |  | $ | 246,569 |  |  | $ | 9,878 |  |  | $ | 1,273,838 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |
Residential spec homes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | — |  |  | $ | — |  |  | $ | 498 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,852 |  |  | $ | 7,139 |  |  | $ | 13,489 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential spec homes |  | $ | — |  |  | $ | — |  |  | $ | 498 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,852 |  |  | $ | 7,139 |  |  | $ | 13,489 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 29 |  |  | $ | — |  |  | $ | 29 |
Development & spec land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 5,133 |  |  | $ | 1,477 |  |  | $ | 990 |  |  | $ | 390 |  |  | $ | 247 |  |  | $ | 3,146 |  |  | $ | 20,236 |  |  | $ | 170 |  |  | $ | 31,789 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,529 |  |  | — |  |  | 1,529 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 104 |  |  | 617 |  |  | — |  |  | 721 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total development & spec land |  | $ | 5,133 |  |  | $ | 1,477 |  |  | $ | 990 |  |  | $ | 390 |  |  | $ | 247 |  |  | $ | 3,250 |  |  | $ | 22,382 |  |  | $ | 170 |  |  | $ | 34,039 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 73 |  |  | $ | — |  |  | $ | — |  |  | $ | 73 |
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 121,969 |  |  | $ | 151,847 |  |  | $ | 93,709 |  |  | $ | 12,154 |  |  | $ | 20,497 |  |  | $ | 59,041 |  |  | $ | 60,539 |  |  | $ | 147,773 |  |  | $ | 667,529 |
Special Mention |  | 1,434 |  |  | 726 |  |  | 265 |  |  | 2,137 |  |  | 119 |  |  | 1,305 |  |  | 9,375 |  |  | 18,836 |  |  | 34,197 |
Substandard |  | 1,595 |  |  | 703 |  |  | 223 |  |  | 211 |  |  | 768 |  |  | 2,404 |  |  | 2,863 |  |  | 2,370 |  |  | 11,137 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial & industrial |  | $ | 124,998 |  |  | $ | 153,276 |  |  | $ | 94,197 |  |  | $ | 14,502 |  |  | $ | 21,384 |  |  | $ | 62,750 |  |  | $ | 72,777 |  |  | $ | 168,979 |  |  | $ | 712,863 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | 33 |  |  | $ | — |  |  | $ | 123 |  |  | $ | 25 |  |  | $ | 351 |  |  | $ | 344 |  |  | $ | — |  |  | $ | 876 |

30

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

December 31, 2023 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 40,920 |  |  | $ | 154,803 |  |  | $ | 157,480 |  |  | $ | 85,159 |  |  | $ | 30,464 |  |  | $ | 177,411 |  |  | $ | — |  |  | $ | — |  |  | $ | 646,237 |
Non–performing |  | 118 |  |  | 1,591 |  |  | 748 |  |  | 259 |  |  | 647 |  |  | 4,695 |  |  | — |  |  | — |  |  | 8,058 |
Total residential mortgage |  | $ | 41,038 |  |  | $ | 156,394 |  |  | $ | 158,228 |  |  | $ | 85,418 |  |  | $ | 31,111 |  |  | $ | 182,106 |  |  | $ | — |  |  | $ | — |  |  | $ | 654,295 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | 28 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | 48 |
Residential construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 26,841 |  |  | $ | — |  |  | $ | 26,841 |
Non–performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 26,841 |  |  | $ | — |  |  | $ | 26,841 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Mortgage warehouse |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 45,078 |  |  | $ | 45,078 |
Non–performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total mortgage warehouse |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 45,078 |  |  | $ | 45,078 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |

December 31, 2023 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 14,835 |  |  | $ | 13,447 |  |  | $ | 7,859 |  |  | $ | 4,246 |  |  | $ | 4,449 |  |  | $ | 5,074 |  |  | $ | 6 |  |  | $ | 2,362 |  |  | $ | 52,278 |
Non–performing |  | — |  |  | 44 |  |  | 10 |  |  | — |  |  | 27 |  |  | 7 |  |  | — |  |  | — |  |  | 88 |
Total installment |  | $ | 14,835 |  |  | $ | 13,491 |  |  | $ | 7,869 |  |  | $ | 4,246 |  |  | $ | 4,476 |  |  | $ | 5,081 |  |  | $ | 6 |  |  | $ | 2,362 |  |  | $ | 52,366 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | 33 |  |  | $ | 28 |  |  | $ | 31 |  |  | $ | 10 |  |  | $ | 32 |  |  | $ | 27 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 167 |
Indirect auto |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 65,260 |  |  | $ | 191,871 |  |  | $ | 80,773 |  |  | $ | 35,995 |  |  | $ | 16,690 |  |  | $ | 8,159 |  |  | $ | — |  |  | $ | — |  |  | $ | 398,748 |
Non–performing |  | 49 |  |  | 424 |  |  | 312 |  |  | 229 |  |  | 124 |  |  | 60 |  |  | — |  |  | — |  |  | 1,198 |
Total indirect auto |  | $ | 65,309 |  |  | $ | 192,295 |  |  | $ | 81,085 |  |  | $ | 36,224 |  |  | $ | 16,814 |  |  | $ | 8,219 |  |  | $ | — |  |  | $ | — |  |  | $ | 399,946 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | 86 |  |  | $ | 1,388 |  |  | $ | 708 |  |  | $ | 137 |  |  | $ | 58 |  |  | $ | 74 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,451 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 26,376 |  |  | $ | 21,379 |  |  | $ | 5,121 |  |  | $ | 2,447 |  |  | $ | 3,885 |  |  | $ | 9,987 |  |  | $ | 12,713 |  |  | $ | 478,673 |  |  | $ | 560,581 |
Non–performing |  | — |  |  | 212 |  |  | — |  |  | 54 |  |  | 177 |  |  | 260 |  |  | 2,860 |  |  | — |  |  | 3,563 |
Total home equity |  | $ | 26,376 |  |  | $ | 21,591 |  |  | $ | 5,121 |  |  | $ | 2,501 |  |  | $ | 4,062 |  |  | $ | 10,247 |  |  | $ | 15,573 |  |  | $ | 478,673 |  |  | $ | 564,144 |
Gross charge–offs for the year ended December 31, 2023 |  | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | 103 |  |  | $ | — |  |  | $ | 91 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 217 |

31

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Note 4 – Allowance for Credit and Loan Losses
The following tables represent, by loan portfolio segment, a summary of changes in the ACL on loans for the three and nine months ended September 30, 2024 and 2023:

|  | Three Months Ended September 30, 2024
|  | Commercial |  | Real Estate |  | Mortgage Warehouse |  | Consumer |  | Total
Balance, beginning of period |  | $ | 31,941 |  |  | $ | 2,588 |  |  | $ | 736 |  |  | $ | 16,950 |  |  | $ | 52,215 |
Credit loss expense (reversal) |  | 861 |  |  | 78 |  |  | 126 |  |  | (21) |  |  | 1,044 |
Charge–offs |  | (38) |  |  | (2) |  |  | — |  |  | (731) |  |  | (771) |
Recoveries |  | 90 |  |  | 11 |  |  | — |  |  | 292 |  |  | 393 |
Balance, end of period |  | $ | 32,854 |  |  | $ | 2,675 |  |  | $ | 862 |  |  | $ | 16,490 |  |  | $ | 52,881 |

|  | Three Months Ended September 30, 2023
|  | Commercial |  | Real Estate |  | Mortgage Warehouse |  | Consumer |  | Total
Balance, beginning of period |  | $ | 30,354 |  |  | $ | 3,648 |  |  | $ | 893 |  |  | $ | 15,081 |  |  | $ | 49,976 |
Credit loss expense (reversal) |  | (665) |  |  | (893) |  |  | (179) |  |  | 2,257 |  |  | 520 |
Charge–offs |  | (263) |  |  | (15) |  |  | — |  |  | (927) |  |  | (1,205) |
Recoveries |  | 46 |  |  | 54 |  |  | — |  |  | 308 |  |  | 408 |
Balance, end of period |  | $ | 29,472 |  |  | $ | 2,794 |  |  | $ | 714 |  |  | $ | 16,719 |  |  | $ | 49,699 |

| Nine Months Ended September 30, 2024
| Commercial |  | Real Estate |  | Mortgage Warehouse |  | Consumer |  | Total
Balance, beginning of period | $ | 29,736 |  |  | $ | 2,503 |  |  | $ | 481 |  |  | $ | 17,309 |  |  | $ | 50,029 |
Credit loss expense (reversal) | 2,951 |  |  | 154 |  |  | 381 |  |  | 642 |  |  | 4,128 |
Charge–offs | (149) |  |  | (5) |  |  | — |  |  | (2,295) |  |  | (2,449) |
Recoveries | 316 |  |  | 23 |  |  | — |  |  | 834 |  |  | 1,173 |
Balance, end of period | $ | 32,854 |  |  | $ | 2,675 |  |  | $ | 862 |  |  | $ | 16,490 |  |  | $ | 52,881 |

| Nine Months Ended September 30, 2023
| Commercial |  | Real Estate |  | Mortgage Warehouse |  | Consumer |  | Total
Balance, beginning of period | $ | 32,445 |  |  | $ | 5,577 |  |  | $ | 1,020 |  |  | $ | 11,422 |  |  | $ | 50,464 |
Credit loss expense (reversal) | (2,380) |  |  | (2,838) |  |  | (306) |  |  | 6,380 |  |  | 856 |
Charge–offs | (767) |  |  | (19) |  |  | — |  |  | (1,941) |  |  | (2,727) |
Recoveries | 174 |  |  | 74 |  |  | — |  |  | 858 |  |  | 1,106 |
Balance, end of period | $ | 29,472 |  |  | $ | 2,794 |  |  | $ | 714 |  |  | $ | 16,719 |  |  | $ | 49,699 |

The accrued interest receivable on our loan receivables is excluded from the allowance for credit loss estimate and is included in interest receivable on our consolidated balance sheets. As of September 30, 2024 and December 31, 2023, the accrued interest on our loan portfolio was $18.2 million and $23.7 million, respectively.
The Company utilized the Cumulative Loss Rate method in determining expected future credit losses. The loss rate method measures the amount of loan charge–offs, net of recoveries, (“loan losses”) recognized over the life of a closed pool and compares those loan losses to the outstanding loan balance of that pool as of a specific point in time (“pool date”).
32

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
To estimate a CECL loss rate for the pool, management first identifies the loan losses recognized between the pool date and the reporting date for the pool and determines which loan losses were related to loans outstanding at the pool date. The loss rate method then divides the loan losses recognized on loans outstanding as of the pool date by the outstanding loan balance as of the pool date.
The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look–back period includes January 2009 through the current period, on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data. The Company supplemented data for 2009 and 2010 with the use of adjusted Uniform Bank Performance Report peer group data.
Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit–related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible.
The Company’s CECL estimate applies to a forecast that incorporates macroeconomic trends and other environmental factors. Management utilized Moody's economic forecast scenarios including both National and Regional econometrics, as well as management judgment, as the basis for the forecast period. The historical loss rate was utilized as the base rate, and qualitative adjustments were utilized to reflect the forecast and other relevant factors.
The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, loan purpose, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of the borrower and concentrations, and historical or expected credit loss patterns.
Liability for Commitments to Extend Credit and Standby Letters of Credit
The following tables represent, by loan portfolio segment, a summary of changes in the activity in the liability for commitments to extend credit and standby letters of credit (please see note 14):

| Three Months Ended
| September 30, 2024 |  | September 30, 2023
|  | Balance, beginning of period |  | Credit loss expense (reversal) |  | Ending balance |  | Balance, beginning of period |  | Credit loss expense (reversal) |  | Ending balance
Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Real Estate |  | 41 |  |  | — |  |  | 41 |  |  | 61 |  |  | (8) |  |  | 53 |
Mortgage Warehouse |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  | 664 |  |  | — |  |  | 664 |  |  | 928 |  |  | (249) |  |  | 679 |
Total |  | $ | 705 |  |  | $ | — |  |  | $ | 705 |  |  | $ | 989 |  |  | $ | (257) |  |  | $ | 732 |
|  | Nine Months Ended
|  | September 30, 2024 |  | September 30, 2023
|  | Balance, beginning of period |  | Credit loss expense (reversal) |  | Ending balance |  | Balance, beginning of period |  | Credit loss expense (reversal) |  | Ending balance
Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Real Estate |  | 64 |  |  | (23) |  |  | 41 |  |  | 161 |  |  | (108) |  |  | 53 |
Mortgage Warehouse |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  | 551 |  |  | 113 |  |  | 664 |  |  | 242 |  |  | 437 |  |  | 679 |
Total |  | $ | 615 |  |  | $ | 90 |  |  | $ | 705 |  |  | $ | 403 |  |  | $ | 329 |  |  | $ | 732 |

Note 5 – Loan Servicing
33

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Loans serviced for others are not included in the accompanying condensed consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled approximately $1.44 billion and $1.479 billion at September 30, 2024 and December 31, 2023.
Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type and interest rates were used to stratify the originated mortgage servicing rights. Mortgage servicing rights are included in other assets on the balance sheets as of September 30, 2024 and December 31, 2023.

|  |  | Three Months Ended |  | Nine Months Ended
|  |  |  |  | September 30, |  | September 30, |  | September 30, |  | September 30,
|  |  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Mortgage servicing rights |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | $ | 18,432 |  |  | $ | 18,507 |  |  | $ | 18,807 |  |  | $ | 18,619 |
Servicing rights capitalized |  |  |  |  | 398 |  |  | 428 |  |  | 956 |  |  | 863 |
Amortization of servicing rights |  |  |  |  | (502) |  |  | (285) |  |  | (1,435) |  |  | (832) |
Balance, end of period |  |  |  |  | 18,328 |  |  | 18,650 |  |  | 18,328 |  |  | 18,650 |
Impairment allowance |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Additions |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Reductions |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Balance, end of period |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Mortgage servicing rights, net |  |  |  |  | $ | 18,328 |  |  | $ | 18,650 |  |  | $ | 18,328 |  |  | $ | 18,650 |
Fair value, beginning of period |  |  |  |  | $ | 19,091 |  |  | $ | 19,659 |  |  | $ | 19,891 |  |  | $ | 18,619 |
Fair value, end of period |  |  |  |  | 18,449 |  |  | 19,571 |  |  | 18,449 |  |  | 19,571 |

Note 6 – Goodwill
The carrying amount of goodwill was $155.2 million as of September 30, 2024 and December 31, 2023, respectively. There were no changes in the carrying amount of goodwill for the three and nine months ended September 30, 2024 and 2023. Goodwill is assessed for impairment annually, or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.
No goodwill impairment charges were recorded for the three and nine months ended September 30, 2024 and 2023. During the third quarter of 2024, Horizon considered the amount by which fair value exceeded book value by performing a qualitative analysis. The Company engaged a third-party valuation specialist in performing its quantitative impairment analysis during the third quarter of 2023, which included a combination of valuation approaches to determine the fair value of the Bank reporting unit. These valuation approaches required certain assumptions such as the discount rate, economic conditions impacting interest and growth rates, the control premium, and a relative weighting given to the fair value derived by each of the valuation approaches used and supported that the fair value of goodwill exceeded its carrying value. At the conclusion of the quantitative analysis for the third quarter of 2023, the Company determined that as of September 30, 2023, it was more likely than not that the fair value of goodwill exceeded its carrying value.
Note 7 – Repurchase Agreements
The Company transfers various securities to customers in exchange for cash at the end of each business day and agrees to
34

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
acquire the securities at the end of the next business day for the cash exchanged plus interest. The process is repeated at the end of each business day until the agreement is terminated. The securities underlying the agreement remained under the Company’s control.
The following tables show repurchase agreements accounted for as secured borrowings and the related securities, at fair value, pledged for repurchase agreements:

| September 30, 2024
| Remaining Contractual Maturity of the Agreements
| Overnight and Continuous |  | Up to 30 Days |  | 30-90 Days |  | Greater Than 90 Days |  | Total
Repurchase Agreements and repurchase-to-maturity transactions |  |  |  |  |  |  |  |  |
Federal agency collateralized mortgage obligations | $ | 2,179 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,179 |
Federal agency mortgage–backed pools | 112,573 |  |  | — |  |  | — |  |  | — |  |  | 112,573 |
Private labeled mortgage–backed pools | 7,647 |  |  | — |  |  | — |  |  | — |  |  | 7,647 |
Total borrowings | $ | 122,399 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 122,399 |
Repurchase Agreements subject to offsetting arrangements |  |  |  |  |  |  |  |  | — |

| December 31, 2023
| Remaining Contractual Maturity of the Agreements
| Overnight and Continuous |  | Up to 30 Days |  | 30-90 Days |  | Greater Than 90 Days |  | Total
Repurchase Agreements and repurchase-to-maturity transactions |  |  |  |  |  |  |  |  |
Federal agency collateralized mortgage obligations | $ | 2,245 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,245 |
Federal agency mortgage–backed pools | 126,349 |  |  | — |  |  | — |  |  | — |  |  | 126,349 |
Private labeled mortgage–backed pools | 7,436 |  |  | — |  |  | — |  |  | — |  |  | 7,436 |
Total borrowings | $ | 136,030 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 136,030 |
Repurchase Agreements subject to offsetting arrangements |  |  |  |  |  |  |  |  | — |

Securities sold under agreements to repurchase are secured by securities with a carrying amount of $146.9 million and $145.2 million at September 30, 2024 and December 31, 2023, respectively.
Note 8 – Subordinated Notes
On June 24, 2020, Horizon issued $60.0 million in aggregate principal amount of 5.625% fixed–to–floating rate subordinated notes (the “Notes”). The Notes were offered in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Notes mature on July 1, 2030 (the “Maturity Date”). From and including the date of original issuance to, but excluding, July 1, 2025 or the date of earlier redemption (the “fixed rate period”), the Notes bear interest at an initial rate of 5.625% per annum, payable semi–annually in arrears on January 1 and July 1 of each year, commencing on January 1, 2021. The last interest payment date for the fixed rate period will be July 1, 2025. From and including July 1, 2025 to, but excluding, the Maturity Date or the date of earlier redemption (the “floating rate period”), the Notes bear interest at a floating rate per annum equal to the benchmark rate, which is expected to be Three–Month Term SOFR (the “Benchmark Rate”), plus 549 basis points, payable quarterly in arrears on January 1, April 1, July 1, and October 1 of each year, commencing on October 1, 2025. Notwithstanding the foregoing, in the event that the Benchmark Rate is less than zero, the Benchmark Rate shall be deemed to be zero.
35

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Horizon may, at its option, beginning with the interest payment date of July 1, 2025 and on any interest payment date thereafter, redeem the Notes, in whole or in part. The Notes will not otherwise be redeemable by Horizon prior to maturity, unless certain events occur. The redemption price for any redemption is 100% of the principal amount of the Notes, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Any early redemption of the Notes will be subject to the receipt of the approval of the Board of Governors of the Federal Reserve System to the extent then required under applicable laws or regulations, including capital regulations.
The Notes are unsecured subordinated obligations, and rank pari passu, or equally, with all of Horizon's future unsecured subordinated debt and are junior to all existing and future senior debt. The Notes are structurally subordinated to all existing and future liabilities of Horizon's subsidiaries, including the deposit liabilities and claims of other creditors of Horizon Bank, and are effectively subordinated to Horizon’s existing and future secured indebtedness. There is no sinking fund for the Notes. The Notes are obligations of Horizon only and are not obligations of, and are not guaranteed by, any of Horizon’s subsidiaries.
On December 8, 2023, Horizon cancelled $3.5 million of the $60.0 million in Notes at a price of 89.5 recording a gain of $368,000. The balance net of unamortized issuance costs of the Notes was $55.7 million and $55.5 million at September 30, 2024 and December 31, 2023, respectively.
Note 9 – Derivative Financial Instruments
Our hedging policy allows the use of interest rate derivative instruments to manage our exposure to interest rate risk or hedge specified assets and liabilities. All derivative instruments are carried on the balance sheet at their estimated fair value and are recorded in other assets or other liabilities, as appropriate.
Cash Flow Hedges
As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flow due to interest rate fluctuations, the Company entered into an interest rate swap agreement for a portion of its floating rate debt on July 20, 2018. The agreement provides for the Company to receive interest from the counterparty at one month LIBOR and to pay interest to the counterparty at a fixed rate of 2.81% on a notional amount of $50.0 million. Under the agreement, the Company paid or received the net interest amount monthly, with the monthly settlements included in interest expense. The Company terminated this interest rate swap agreement on May 23, 2023 and recorded a related gain of $1.5 million as a reduction of interest expense.
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.
Fair Value Hedges
Fair value hedges are intended to reduce the interest rate risk associated with the underlying hedged item. The Company enters into fixed rate loan agreements as part of its lending policy. To mitigate the risk of changes in fair value based on fluctuations in interest rates, the Company has entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate. Additionally, the Company entered into fair value hedges for certain of our fixed rate AFS municipal securities. The instruments are designated as fair value hedges as the changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the hedged item attributable to changes in the SOFR swap rate, the designated benchmark interest rate. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. The change in fair value of both the hedge instruments and the underlying hedged item are recorded as gains or losses in non–interest income. At September 30, 2024, the Company’s fair value hedges were effective and are not expected to have a significant impact on the Company’s net income over the next 12 months.
36

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Other Derivative Instruments
From time to time, we may enter into certain interest rate swaps that are not designated as hedging instruments. These interest rate derivative contracts relate to transactions in which we enter into an interest rate swap with a customer while concurrently entering into an offsetting interest rate swap with a third-party financial institution. We agree to pay interest to the customer on a notional amount at a variable rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These interest rate derivative contracts allow our customers to effectively convert a variable rate loan to a fixed rate loan.
The Company enters into non–hedging derivatives in the form of mortgage loan forward sale commitments with investors and commitments to originate mortgage loans as part of its mortgage banking business. At September 30, 2024, the Company’s fair value of these derivatives were recorded and over the next 12 months are not expected to have a significant impact on the Company’s net income.
The change in fair value of both the forward sale commitments and commitments to originate mortgage loans were recorded and the net gains or losses included in the Company’s gain on sale of loans.
The following tables summarize the fair value of our derivative financial instruments utilized by Horizon on a gross basis for the periods indicated.

| Asset Derivatives |  | Liability Derivatives
| September 30, 2024 |  | September 30, 2024
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts – fair value hedges | $ | 40,113 |  |  | $ | 1,797 |  |  | $ | 1,445 |  |  | $ | 4 |
Total derivatives designated as hedging instruments | 40,113 |  |  | 1,797 |  |  | 1,445 |  |  | 4 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts – customer accommodation | 524,919 |  |  | 15,427 |  |  | 524,919 |  |  | 15,427 |
Mortgage loan contracts | — |  |  | — |  |  | 14,794 |  |  | 8 |
Commitments to originate mortgage loans | 15,549 |  |  | 451 |  |  | — |  |  | — |
Total derivatives not designated as hedging instruments | 540,468 |  |  | 15,878 |  |  | 539,713 |  |  | 15,435 |
Total derivatives | $ | 580,581 |  |  | $ | 17,675 |  |  | $ | 541,158 |  |  | $ | 15,439 |
Total derivatives subject to enforceable master netting arrangements, gross | $ | 580,581 |  |  | $ | 17,675 |  |  | $ | 541,158 |  |  | $ | 15,439 |
Less: Gross amounts offset | — |  |  | — |  |  | — |  |  | — |
Total derivatives subject to enforceable master netting arrangements, net | $ | 580,581 |  |  | $ | 17,675 |  |  | $ | 541,158 |  |  | $ | 15,439 |

37

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

| Asset Derivatives |  | Liability Derivatives
| December 31, 2023 |  | December 31, 2023
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts – fair value hedges | $ | 53,468 |  |  | $ | 2,950 |  |  | $ | — |  |  | $ | — |
Total derivatives designated as hedging instruments | 53,468 |  |  | 2,950 |  |  | — |  |  | — |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts – customer accommodation | 504,696 |  |  | 23,606 |  |  | 514,881 |  |  | 24,024 |
Mortgage loan contracts | 4,844 |  |  | 33 |  |  | — |  |  | — |
Commitments to originate mortgage loans | 4,351 |  |  | 125 |  |  | — |  |  | — |
Total derivatives not designated as hedging instruments | 513,891 |  |  | 23,764 |  |  | 514,881 |  |  | 24,024 |
Total derivatives | $ | 567,359 |  |  | $ | 26,714 |  |  | $ | 514,881 |  |  | $ | 24,024 |
Total derivatives subject to enforceable master netting arrangements, gross | $ | 567,359 |  |  | $ | 26,714 |  |  | $ | 514,881 |  |  | $ | 24,024 |
Less: Gross amounts offset | — |  |  | — |  |  | — |  |  | — |
Total derivatives subject to enforceable master netting arrangements, net | $ | 567,359 |  |  | $ | 26,714 |  |  | $ | 514,881 |  |  | $ | 24,024 |

While the Company is party to master netting arrangements with most of its swap derivative counterparties, the Company has elected to not offset derivative assets and liabilities under these agreements on its consolidated balance sheets. Collateral exchanged between the Company and dealer bank counterparties is generally subject to thresholds and transfer minimums, and usually consists of marketable securities. At September 30, 2024, the Company pledged marketable securities as collateral with a carrying value of $19.0 million.
The effect of the derivative instruments on the condensed consolidated statements of comprehensive income (loss) for the three and nine month periods ended September 30 is as follows:

|  |  |  |  | Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative
|  |  | Three Months Ended |  | Nine Months Ended
|  |  |  |  | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Derivatives in cash flow hedging relationship |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,561) |

The effect of the derivatives in cash flow hedging relationships on the condensed consolidated statements of income for three and nine month periods ended September 30 is as follows:

| Location of gain (loss) recognized |  |  |  |  |  | Amount of Gain (Loss) Recognized
|  | Three Months Ended |  | Nine Months Ended
|  |  |  |  | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Derivatives in cash flow hedging relationship |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts – cash flow hedges | Interest expense – Borrowings |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,832 |

38

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The effect of the derivative and the hedged item in fair value hedging relationships on the condensed consolidated statements of income for three and nine month periods ended September 30 is as follows:

| Location of gain (loss) recognized on derivative and hedged item |  | Amount of Gain (Loss) Recognized on Derivative and Hedged Item
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |
Interest rate contracts - fair value hedge | Interest income - loans receivable |  | $ | 317 |  |  | $ | 340 |  |  | $ | 982 |  |  | $ | 774 |
Hedged item |  | (317) |  |  | (340) |  |  | (982) |  |  | (774) |
Interest rate contracts - fair value hedge | Interest income - investment securities |  | — |  |  | 53 |  |  | — |  |  | 163 |
Hedged item |  | — |  |  | (53) |  |  | — |  |  | (163) |
Total |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |

The effect of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and nine month periods ended September 30 is as follows:

| Location of gain (loss) recognized on derivative |  | Amount of Gain (Loss) Recognized on Derivative
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |
Mortgage loan contracts | Non-interest income - Gain on sale of loans |  | $ | (24) |  |  | $ | (6) |  |  | $ | 34 |  |  | $ | 26 |
Commitments to originate mortgage loans | Non-interest income - Gain on sale of loans |  | 378 |  |  | 182 |  |  | 181 |  |  | 118 |
Total |  |  | $ | 354 |  |  | $ | 176 |  |  | $ | 215 |  |  | $ | 144 |

The following tables summarize the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.

| Amortized Cost of Hedged Items |  | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Items
| September 30, 2024 |  | December 31, 2023 |  | September 30, 2024 |  | December 31, 2023
Loans | $ | 38,787 |  |  | $ | 40,788 |  |  | $ | (1,793) |  |  | $ | (2,532) |

39

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Note 10 – Disclosures about Fair Value of Assets and Liabilities
The Fair Value Measurements topic of the FASB ASC defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. There are three levels of inputs that may be used to measure fair value:
Level 1 –Quoted prices in active markets for identical assets or liabilities
Level 2 –Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3 –Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended September 30, 2024. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.
Available for sale securities
When quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. Treasury and federal agency securities, state and municipal securities, federal agency collateralized mortgage obligations and mortgage–backed pools and corporate notes. Level 2 securities are valued by a third party pricing service commonly used in the banking industry utilizing observable inputs. Observable inputs include dealer quotes, market spreads, cash flow analysis, the U.S. Treasury yield curve, trade execution data, market consensus prepayment spreads and available credit information and the bond’s terms and conditions. The pricing provider utilizes evaluated pricing models that vary based on asset class. These models incorporate available market information including quoted prices of securities with similar characteristics and, because many fixed–income securities do not trade on a daily basis, apply available information through processes such as benchmark curves, benchmarking of like securities, sector grouping, and matrix pricing. In addition, model processes, such as an option adjusted spread model, is used to develop prepayment and interest rate scenarios for securities with prepayment features.
Interest rate swap agreements
The fair value of the Company’s interest rate swap agreements is estimated by a third party using inputs that are primarily unobservable including a yield curve, adjusted for liquidity and credit risk, contracted terms and discounted cash flow analysis, and therefore, are classified within Level 2 of the valuation hierarchy.
40

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:

| September 30, 2024
| Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 63,245 |  |  | $ | — |  |  | $ | 63,245 |  |  | $ | — |
State and municipal | 306,025 |  |  | — |  |  | 306,025 |  |  | — |
Federal agency collateralized mortgage obligations | 3,152 |  |  | — |  |  | 3,152 |  |  | — |
Federal agency mortgage–backed pools | 132,696 |  |  | — |  |  | 132,696 |  |  | — |
Corporate notes | 36,052 |  |  | — |  |  | 36,052 |  |  | — |
Total available for sale securities | 541,170 |  |  | — |  |  | 541,170 |  |  | — |
Equity securities | 573 |  |  | 573 |  |  | — |  |  | — |
Interest rate swap agreements asset | 17,224 |  |  | — |  |  | 17,224 |  |  | — |
Commitments to originate mortgage loans | 451 |  |  | — |  |  | 451 |  |  | — |
Liabilities: |  |  |  |  |  |  |
Mortgage loan contracts liability | 8 |  |  | — |  |  | 8 |  |  | — |
Interest rate swap agreements liability | 15,431 |  |  | — |  |  | 15,431 |  |  | — |

| December 31, 2023
| Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 64,377 |  |  | $ | — |  |  | $ | 64,377 |  |  | $ | — |
State and municipal | 304,030 |  |  | — |  |  | 304,030 |  |  | — |
Federal agency collateralized mortgage obligations | 3,580 |  |  | — |  |  | 3,580 |  |  | — |
Federal agency mortgage–backed pools | 137,297 |  |  | — |  |  | 137,297 |  |  | — |
Corporate notes | 37,967 |  |  | — |  |  | 37,967 |  |  | — |
Total available for sale securities | 547,251 |  |  | — |  |  | 547,251 |  |  | — |
Equity securities (1) | 628 |  |  | 628 |  |  | — |  |  | — |
Interest rate swap agreements asset | 26,556 |  |  | — |  |  | 26,556 |  |  | — |
Commitments to originate mortgage loans | 125 |  |  | — |  |  | 125 |  |  | — |
Mortgage loan contracts | 33 |  |  | — |  |  | 33 |  |  | — |
Liabilities: |  |  |  |  |  |  |
Interest rate swap agreements liability | 24,024 |  |  | — |  |  | 24,024 |  |  | — |
(1) Prior period securities were included in available-for-sale. Updated to align with comparable period.

41

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):

| Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
September 30, 2024 |  |  |  |  |  |  |
Collateral dependent loans | $ | 3,455 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,455 |
December 31, 2023 |  |  |  |  |  |  |
Collateral dependent loans | $ | 2,918 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,918 |

Collateral Dependent Loans: For loans identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value.
Collateral dependent loans are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.
The following table presents qualitative information about unobservable inputs used in recurring and non–recurring Level 3 fair value measurements, other than goodwill.

| September 30, 2024
| Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range (Weighted Average)
Collateral dependent loans | $ | 3,455 |  |  | Collateral based measurement |  | Discount to reflect current market conditions and ultimate collectibility |  | 16.1%-40.6% (36.8%)

| December 31, 2023
| Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range (Weighted Average)
Collateral dependent loans | $ | 2,918 |  |  | Collateral based measurement |  | Discount to reflect current market conditions and ultimate collectibility |  | 16.9%-34.2%(21.5%)

Note 11 – Fair Value of Financial Instruments
The estimated fair value amounts of the Company’s financial instruments were determined using available market information, current pricing information applicable to Horizon and various valuation methodologies. Where market quotations were not available, considerable management judgment was involved in the determination of estimated fair values. Therefore, the estimated fair value of financial instruments shown below may not be representative of the amounts at which they could be exchanged in a current or future transaction. Due to the inherent uncertainties of expected cash flows of financial instruments, the use of alternate valuation assumptions and methods could have a significant effect on the estimated fair value amounts.
42

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The estimated fair values of financial instruments, as shown below, are not intended to reflect the estimated liquidation or market value of Horizon taken as a whole. The disclosed fair value estimates are limited to Horizon’s significant financial instruments at September 30, 2024 and December 31, 2023. These include financial instruments recognized as assets and liabilities on the condensed consolidated balance sheets as well as certain off–balance sheet financial instruments. The estimated fair values shown below do not include any valuation of assets and liabilities, which are not financial instruments as defined by the FASB ASC fair value hierarchy.
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Cash and Cash Equivalents – Cash and cash equivalents are composed of: cash and due from banks, interest earning deposits, and federal funds sold. The carrying amounts approximate fair value.
Interest-Earning Time Deposits – The carrying amounts approximate fair value.
Held–to–Maturity Securities – For debt securities held to maturity, fair values are based on quoted market prices or dealer quotes. For those securities where a quoted market price is not available, carrying amount is a reasonable estimate of fair value based upon comparison with similar securities.
Loans Held for Sale – The carrying amounts approximate fair value.
Net Loans – The fair value of net loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.
FHLB Stock – Fair value of FHLB stock is based on the price at which it may be resold to the FHLB.
Interest Payable – The carrying amounts approximate fair value.
Deposits – The fair value of demand deposits, savings accounts, interest bearing checking accounts and money market deposits is the amount payable on demand at the reporting date and are classified within Level 1. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturity and are classified within Level 2.
Borrowings – Rates currently available to Horizon for debt with similar terms and remaining maturities are used to estimate fair values of existing borrowings.
Subordinated Notes – The fair value of subordinated notes is based on discounted cash flows based on current borrowing rates for similar types of instruments.
Junior Subordinated Debentures Issued to Capital Trusts – Rates currently available for debentures with similar terms and remaining maturities are used to estimate fair values of existing debentures.
Commitments to Extend Credit and Standby Letters of Credit – The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed–rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. Due to the short–term nature of these agreements, carrying amounts approximate fair value.
43

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following tables present estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall.

| September 30, 2024
| Carrying Amount |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets |  |  |  |  |  |  |
Cash and due from banks | $ | 108,815 |  |  | $ | 108,815 |  |  | $ | — |  |  | $ | — |
Interest earning deposits | 12,107 |  |  | 12,107 |  |  | — |  |  | — |
Federal funds sold | 113,912 |  |  | 113,912 |  |  | — |  |  | — |
Cash and cash equivalents | 234,834 |  |  | 234,834 |  |  | — |  |  |
Interest earning time deposits | 735 |  |  | — |  |  | 735 |  |  | — |
Investment securities, held to maturity | 1,888,379 |  |  | — |  |  | 1,640,443 |  |  | — |
Loans held for sale | 2,069 |  |  | — |  |  | — |  |  | 2,069 |
Loans, net | 4,751,115 |  |  | — |  |  | — |  |  | 4,562,006 |
Stock in FHLB | 53,826 |  |  | — |  |  | 53,826 |  |  | — |
Liabilities |  |  |  |  |  |  |
Non–interest bearing deposits | $ | 1,085,535 |  |  | $ | 1,085,535 |  |  | $ | — |  |  | $ | — |
Interest bearing deposits | 4,641,480 |  |  | 3,420,831 |  |  | 1,217,361 |  |  | — |
Borrowings | 1,265,143 |  |  | — |  |  | 1,269,946 |  |  | — |
Subordinated notes | 55,703 |  |  | — |  |  | 53,443 |  |  | — |
Junior subordinated debentures issued to capital trusts | 57,423 |  |  | — |  |  | 49,983 |  |  | — |
Interest payable | 11,400 |  |  | — |  |  | 11,400 |  |  | — |

44

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)

| December 31, 2023
| Carrying Amount |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets |  |  |  |  |  |  |
Cash and due from banks | $ | 112,772 |  |  | $ | 112,772 |  |  | $ | — |  |  | $ | — |
Interest earning deposits | 12,071 |  |  | 12,071 |  |  | — |  |  | — |
Federal funds sold | 401,672 |  |  | 401,672 |  |  | — |  |  | — |
Cash and cash equivalents | 526,515 |  |  | 526,515 |  |  | — |  |  | — |
Interest earning time deposits | 2,205 |  |  | — |  |  | 2,190 |  |  | — |
Investment securities, held to maturity | 1,945,638 |  |  | — |  |  | 1,668,601 |  |  | — |
Loans held for sale | 1,418 |  |  | — |  |  | — |  |  | 1,418 |
Loans, net | 4,367,601 |  |  | — |  |  | — |  |  | 4,072,568 |
Stock in FHLB | 34,509 |  |  | — |  |  | 34,509 |  |  | — |
Liabilities |  |  |  |  |  |  |
Non–interest bearing deposits | $ | 1,116,005 |  |  | $ | 1,116,005 |  |  | $ | — |  |  | $ | — |
Interest bearing deposits | 4,548,888 |  |  | 3,369,149 |  |  | 1,171,452 |  |  | — |
Borrowings | 1,353,050 |  |  | — |  |  | 1,347,129 |  |  | — |
Subordinated notes | 55,543 |  |  | — |  |  | 53,283 |  |  | — |
Junior subordinated debentures issued to capital trusts | 57,258 |  |  | — |  |  | 50,063 |  |  | — |
Interest payable | 22,249 |  |  | — |  |  | 22,249 |  |  | — |

Note 12 – Stockholders' Equity
On September 17, 2024, the Company declared a quarterly dividend to common shareholders of $0.16 per share, which was paid on October 18, 2024 to shareholders of record on October 04, 2024.
Dividends declared were $0.16 and $0.48 per share during the three and nine months ended September 30, 2024, and $0.16 and $0.48 per share during the three and nine months ended September 30, 2023.
Accumulated Other Comprehensive Income (Loss)

| September 30, 2024 |  | December 31, 2023
Unrealized gain (loss) on securities available for sale, net of tax | $ | (59,704) |  |  | $ | (69,018) |
Unamortized gain (loss) on securities held to maturity, previously transferred from AFS, net of tax | 2,023 |  |  | 2,409 |
Total accumulated other comprehensive income (loss) | $ | (57,681) |  |  | $ | (66,609) |

Note 13 – Regulatory Capital
Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. These capital requirements implement changes arising from the Dodd–Frank Wall Street Reform and Consumer Protection Act and the U.S. Basel Committee on Banking Supervision’s capital framework (known as “Basel III”). Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Company’s financial statements. Under capital
45

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
adequacy guidelines and the regulatory framework for prompt corrective actions, the Company and Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off–balance–sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
The Company and Bank are subject to minimum regulatory capital requirements as defined and calculated in accordance with the Basel III–based regulations. As allowed under Basel III rules, the Company made the decision to opt–out of including accumulated other comprehensive income in regulatory capital. The minimum regulatory capital requirements are set forth in the table below.
In addition, to be categorized as well capitalized, the Company and Bank must maintain Total risk–based, Tier I risk–based, common equity Tier I risk–based and Tier I leverage ratios as set forth in the table below. As of September 30, 2024 and December 31, 2023, the Company and Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the third quarter of 2024 that management believes have changed the Bank’s classification as well capitalized. There is no threshold for well capitalized status for bank holding companies.
46

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
The following table presents Horizon and the Bank’s actual and required capital ratios as of September 30, 2024 and December 31, 2023, as well as the revisions to Horizon's regulatory capital ratios to reflect the correction of the capital computations for the foregoing periods:

| Actual | Required for Capital Adequacy Purposes(1) |  | Required For Capital Adequacy Purposes with Capital Buffer(1) |  | Well Capitalized Under Prompt Corrective Action Provisions(1)
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital (to risk-weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | $ | 809,747 |  |  | 13.45 | % |  | $ | 481,633 |  |  | 8.00 | % |  | $ | 632,143 |  |  | 10.50 | % |  | N/A |  | N/A
Bank | 739,221 |  |  | 12.33 |  |  | 479,729 |  |  | 8.00 |  |  | 629,644 |  |  | 10.50 |  |  | $ | 599,661 |  |  | 10.00 | %
Tier 1 capital (to risk-weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 700,300 |  |  | 11.63 |  |  | 361,225 |  |  | 6.00 |  |  | 511,735 |  |  | 8.50 |  |  | N/A |  | N/A
Bank | 685,477 |  |  | 11.43 |  |  | 359,797 |  |  | 6.00 |  |  | 509,712 |  |  | 8.50 |  |  | 479,729 |  |  | 8.00 |
Common equity tier 1 capital (to risk-weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 642,877 |  |  | 10.68 |  |  | 270,918 |  |  | 4.50 |  |  | 421,429 |  |  | 7.00 |  |  | N/A |  | N/A
Bank | 685,477 |  |  | 11.43 |  |  | 269,848 |  |  | 4.50 |  |  | 419,763 |  |  | 7.00 |  |  | 389,780 |  |  | 6.50 |
Tier 1 capital (to total assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 700,300 |  |  | 9.02 |  |  | 310,523 |  |  | 4.00 |  |  | 310,523 |  |  | 4.00 |  |  | N/A |  | N/A
Bank | 685,477 |  |  | 8.84 |  |  | 310,096 |  |  | 4.00 |  |  | 310,096 |  |  | 4.00 |  |  | 387,621 |  |  | 5.00 |
| Actual | Required for Capital Adequacy Purposes(1) |  | Required For Capital Adequacy Purposes with Capital Buffer(1) |  | Well Capitalized Under Prompt Corrective Action Provisions(1)
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital (to risk-weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated (As Revised)* | $ | 782,598 |  |  | 14.04 | % |  | $ | 446,000 |  |  | 8.00 | % |  | $ | 585,374 |  |  | 10.50 | % |  | N/A |  | N/A
Consolidated (As Reported) | 786,436 |  |  | 14.11 |  |  | 446,000 |  |  | 8.00 |  |  | 585,374 |  |  | 10.50 |  |  | N/A |  | N/A
Bank | 714,402 |  |  | 12.87 |  |  | 444,147 |  |  | 8.00 |  |  | 582,943 |  |  | 10.50 |  |  | 555,184 |  |  | 10.00 | %
Tier 1 capital (to risk-weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated (As Revised)* | 676,411 |  |  | 12.13 |  |  | 334,500 |  |  | 6.00 |  |  | 473,874 |  |  | 8.50 |  |  | N/A |  | N/A
Consolidated (As Reported) | 735,792 |  |  | 13.20 |  |  | 334,500 |  |  | 6.00 |  |  | 473,874 |  |  | 8.50 |  |  | N/A |  | N/A
Bank | 663,758 |  |  | 11.96 |  |  | 333,111 |  |  | 6.00 |  |  | 471,907 |  |  | 8.50 |  |  | 444,147 |  |  | 8.00 |
Common equity tier 1 capital (to risk-weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 619,153 |  |  | 11.11 |  |  | 250,875 |  |  | 4.50 |  |  | 390,250 |  |  | 7.00 |  |  | N/A |  | N/A
Bank | 663,758 |  |  | 11.96 |  |  | 249,833 |  |  | 4.50 |  |  | 388,629 |  |  | 7.00 |  |  | 360,870 |  |  | 6.50 |
Tier 1 capital (to total assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated (As Revised)* | 676,411 |  |  | 8.61 |  |  | 314,306 |  |  | 4.00 |  |  | 314,306 |  |  | 4.00 |  |  | N/A |  | N/A
Consolidated (As Reported) | 735,792 |  |  | 9.36 |  |  | 314,306 |  |  | 4.00 |  |  | 314,306 |  |  | 4.00 |  |  | N/A |  | N/A
Bank | 663,758 |  |  | 8.41 |  |  | 315,550 |  |  | 4.00 |  |  | 315,550 |  |  | 4.00 |  |  | 394,438 |  |  | 5.00 |
(1) As defined by regulatory agencies
*Prior periods have been revised (see disclosures above)

47

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Note 14 – Off-Balance Sheet Arrangements, Commitments, and Contingencies
Legal Proceedings
As of April 20, 2023, a putative class action lawsuit entitled Chad Key, et al. v. Horizon Bancorp, Inc., et al., Case No. 1:23-cv-02961 (”Securities Action”) was filed against the Company and two of its officers in the U.S. District Court for the Eastern District of New York. The Securities Action asserts claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 alleging, among other things, the Company made materially false and misleading statements and failed to disclose material adverse facts which allegedly resulted in harm to a putative class of purchasers of our securities from March 9, 2022 and March 10, 2023.
As of (1) August 28, 2023, a lawsuit related to the Securities Action was filed by Sally Hundley, derivatively on behalf of the Company, against the Company, as nominal defendant, and 2 of the Company's officers and 10 of its directors and (2) August 31, 2023, a lawsuit also related to the Securities Action was filed by Aziz Chowdhury, derivatively on behalf of the Company, against the Company, as nominal defendant, and 2 of the Company's officers and 10 of its directors (the “Derivatives Actions”) in the U.S. District Court for the Eastern District of New York. The Derivative Actions allege, among other things, breach of the officers and directors' fiduciary duties. The Derivative Actions have been consolidated and stayed pending resolution of any motion to dismiss in the Securities Action.
Based on our initial review of these actions, management believes that the Company has strong defenses to the claims and intends to vigorously defend against them. As of September 30, 2024, no liabilities related to the above matters were recorded because we have concluded such liabilities are not probable and the amounts of such liabilities are not reasonably estimable.
In addition to the matters described above, from time to time, Horizon and its subsidiaries are involved in various legal proceedings incidental to the conduct of their business. Management does not expect that the outcome of any such proceedings will have a material adverse effect on our consolidated financial position or results of operations.
Financial Instruments with Off-Balance Sheet Risk
In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk to meet the financing needs of its clients. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recorded in the consolidated balance sheets.
Commitments to extend credit are legally binding agreements to lend to a client, so long as there is no violation of any condition established in the commitment contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party. The credit risk involved in issuing letters of credit is essentially the same as the credit risk involved in extending loan facilities to clients. The Company’s policy for obtaining collateral, and determining the nature of such collateral, is essentially the same as in the Company’s policies for making commitments to extend credit. The methodology for estimating the liability for unfunded loan commitments is consistent with the allowance for credit losses on loans.
The following table represents the commitments to extend credit and standby letters of credit as of September 30, 2024 and December 31, 2023, respectively:

|  | September 30, 2024 |  | December 31, 2023
Commitments to extend credit |  | 1,025,186 |  |  | 1,118,417 |
Standby letters of credit |  | 24,378 |  |  | 16,493 |
Total |  | $ | 1,049,564 |  |  | 1,134,910 |

Note 15 - Subsequent Events
In October, the Company sold certain available-for-sale securities with a total fair market value of $293.1 million, and an amortiz ed cost of $332.2 million. As a result, the Company incurred a net realized loss on sale of securitie s of $39.1 million.
48

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Table Dollar Amounts in Thousands, Except Per Share Data)
Additionally, in October, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale.
49

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward–Looking Statements
This report contains certain forward–looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to Horizon Bancorp, Inc. (“Horizon” or the “Company”) and Horizon Bank (the “Bank”). Horizon intends such forward–looking statements to be covered by the safe harbor provisions for forward–looking statements contained in the Private Securities Reform Act of 1995, and is including this statement for the purposes of these safe harbor provisions. Statements in this report should be considered in conjunction with the other information available about Horizon, including the information in the other filings we make with the Securities and Exchange Commission. 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,” “expect,” “estimate,” “project,” “intend,” “plan,” “believe,” “could,” “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.
Actual results may differ materially, adversely or positively, from the expectations of the Company that are expressed or implied by any forward–looking statement. Risks, uncertainties, and factors that could cause the Company’s actual results to vary materially from those expressed or implied by any forward–looking statement include but are not limited to:
•current financial conditions within the banking industry;
•changes in the level and volatility of interest rates, spreads on earning assets and interest bearing liabilities, and interest rate sensitivity;
•the aggregate effects of elevated inflation levels in recent years;
•loss of key Horizon personnel;
•macroeconomic conditions and their impact on Horizon and its customers;
•the increasing use of Bitcoin and other crypto currencies and/or stable coin and the possible impact these alternative currencies may have on deposit disintermediation and income derived from payment systems;
•the effect of interest rates on net interest rate margin and their impact on mortgage loan volumes and the outflow of deposits;
•increases in disintermediation, as new technologies allow consumers to complete financial transactions without the assistance of banks;
•potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms (e.g., Apple Pay or Bitcoin) take a greater market share of the payment systems;
•estimates of fair value of certain of Horizon’s assets and liabilities;
•volatility and disruption in financial markets;
•changes in prepayment speeds, loan originations, credit losses and market values, collateral securing loans and other assets;
•changes in sources of liquidity;
•potential risk of environmental liability related to lending and acquisition activities;
•changes in the competitive environment in Horizon’s market areas and among other financial service providers;
•legislation and/or regulation affecting the financial services industry as a whole, and Horizon and its subsidiaries in particular;
•changes in regulatory supervision and oversight, including monetary policy and capital requirements;
•changes in accounting policies or procedures as may be adopted and required by regulatory agencies;
50

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
•litigation, regulatory enforcement, tax, and legal compliance risk and costs, as applicable generally and specifically to the financial and fiduciary (generally and as an ESOP fiduciary) environment, especially if materially different from the amount we expect to incur or have accrued for, and any disruptions caused by the same;
•the effects and costs of governmental investigations or related actions by third parties;
•rapid technological developments and changes;
•the risks presented by cyber terrorism and data security breaches;
•the rising costs of effective cybersecurity;
•containing costs and expenses;
•the ability of the U.S. federal government to manage federal debt limits;
•the potential influence on the U.S. financial markets and economy from the effects of climate change and social justice initiatives;
•the risks of expansion through mergers and acquisitions, including unexpected credit quality problems with acquired loans, difficulty integrating acquired operations and material differences in the actual financial results of such transactions compared with Horizon’s initial expectations, including the full realization of anticipated cost savings; and
•acts of terrorism, war and global conflicts, such as the Russia-Ukraine and Israel-Hamas conflicts, and the potential impact they may have on supply chains, the availability of commodities, commodity prices, inflationary pressure and the overall U.S. and global financial markets.
The foregoing list of important factors is not exclusive, and you are cautioned not to place undue reliance on these forward–looking statements, which speak only as of the date of this document or, in the case of documents incorporated by reference, the dates of those documents. We do not undertake to update any forward–looking statements, whether written or oral, that may be made from time to time by us or on our behalf. For a detailed discussion of the risks and uncertainties that may cause our actual results or performance to differ materially from the results or performance expressed or implied by forward–looking statements, see “Risk Factors” in Item 1A of Part I of our 2023 Annual Report on Form 10–K, in Item 1A of Part II of this Quarterly Report on Form 10–Q, and in the subsequent reports we file with the SEC.
Critical Accounting Estimates
The notes to the consolidated financial statements included in Item 8 of the Company’s 2023 Annual Report on Form 10–K contain a summary of the Company’s significant accounting policies. Certain of these policies are important to the portrayal of the Company’s financial condition, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. The Company considers these policies to be its critical accounting estimates. Management has identified as critical accounting policies the allowance for credit losses, goodwill and intangible assets, mortgage servicing rights, hedge accounting and valuation measurements.
For additional information regarding critical accounting estimates, see Note 1 – Nature of Operations and Summary of Significant Accounting Policies included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes in the Company’s application of critical accounting estimates since December 31, 2023.
Results of Operations
Net Income
Net income increased $2.0 million to $18.2 million, or $0.42 per share, during the three months ended September 30, 2024 when compared to $16.2 million, or $0.37 per share, for the same period in 2023. The increase from the year ago period was primarily driven by an increase in net interest income and a reduction in the effective tax rate in the current period, partially offset by an increase in non-interest expense when compared to the year ago period. Net interest income
51

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
increased by $4.8 million, or 11.5% when compared with the year ago period, driven by a modest increase in average earning assets and a 25 basis point increase in the net FTE interest margin 1, to 2.66% in the current period.
Net income declined $6.9 million to $46.3 million, or $1.06 per share, during the nine months ended September 30, 2024 when compared to $53.2 million, or $1.22 per share, for the same period in 2023. The decrease from the year ago period was primarily a result of growth in non-interest expense, a decline in non-interest income and increased provision for loan loss related to loan growth in the current period.
Net Interest Income
Net interest income increased $4.8 million during the three months ended September 30, 2024, to $46.9 million, when compared to the same period in 2023. While average earning asset growth was modest, the reported net FTE interest margin 1 increased by 25 basis points, to 2.66% for the three months ended September 30, 2024 compared to the year ago period, attributable to the favorable mix shift in both average interest earning assets toward higher-yielding loans and the funding mix toward lower cost deposit liabilities, in addition to a higher contribution to the net FTE interest margin 1 from interest-free funds. 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 1.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
52

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
Following are the average balance sheets for the three months ended (dollars in thousands):

| Average Balance Sheet
| (Dollars in Thousands, Unaudited)
| Three Months Ended
| September 30, 2024 | September 30, 2023
| Average Balance (8) | Interest(4) | Average Rate(4) | Average Balance (8) | Interest(4) | Average Rate(4)
Assets |  |  |  |  |  |
Interest earning assets |  |  |  |  |  |
Federal funds sold | $ | 64,743 |  | $ | 860 |  | 5.28 | % | $ | 92,305 |  | $ | 1,247 |  | 5.36 | %
Interest earning deposits (7) | 8,781 |  | 97 |  | 4.39 | % | 8,018 |  | 85 |  | 4.21 | %
Federal Home Loan Bank stock (6) | 53,826 |  | 1,607 |  | 11.88 | % | 34,509 |  | 618 |  | 7.10 | %
Investment securities - taxable (1) | 1,301,830 |  | 6,526 |  | 1.99 | % | 1,650,081 |  | 8,170 |  | 1.96 | %
Investment securities - non-taxable (1) | 1,125,295 |  | 7,987 |  | 2.82 | % | 1,220,998 |  | 8,863 |  | 2.88 | %
Total investment securities | 2,427,125 |  | 14,513 |  | 2.38 | % | 2,871,079 |  | 17,033 |  | 2.35 | %
Loans receivable (2) (3) | 4,775,788 |  | 75,828 |  | 6.32 | % | 4,280,700 |  | 63,254 |  | 5.86 | %
Total interest earning assets | 7,330,263 |  | 92,905 |  | 5.04 | % | 7,286,611 |  | 82,237 |  | 4.48 | %
Non-interest earning assets |  |  |  |  |  |
Cash and due from banks | 108,609 |  |  |  | 100,331 |  |  |
Allowance for credit losses | (52,111) |  |  |  | (49,705) |  |  |
Other assets | 471,259 |  |  |  | 587,514 |  |  |
Total average assets | $ | 7,858,020 |  |  |  | $ | 7,924,751 |  |  |
Liabilities and Stockholders' Equity |  |  |  |  |  |
Interest bearing liabilities |  |  |  |  |  |
Interest bearing deposits | $ | 3,386,177 |  | $ | 18,185 |  | 2.14 | % | $ | 3,267,594 |  | $ | 12,661 |  | 1.54 | %
Time deposits | 1,189,148 |  | 12,602 |  | 4.22 | % | 1,271,104 |  | 12,043 |  | 3.76 | %
Borrowings | 1,149,952 |  | 10,221 |  | 3.54 | % | 1,180,452 |  | 10,399 |  | 3.50 | %
Repurchase agreements | 123,524 |  | 910 |  | 2.93 | % | 136,784 |  | 825 |  | 2.39 | %
Subordinated notes | 55,681 |  | 830 |  | 5.93 | % | 58,983 |  | 880 |  | 5.92 | %
Junior subordinated debentures issued to capital trusts | 57,389 |  | 1,230 |  | 8.53 | % | 57,166 |  | 1,227 |  | 8.52 | %
Total interest bearing liabilities | 5,961,871 |  | 43,978 |  | 2.93 | % | 5,972,083 |  | 38,035 |  | 2.53 | %
Non-interest bearing liabilities |  |  |  |  |  |
Demand deposits | 1,083,214 |  |  |  | 1,159,241 |  |  |
Accrued interest payable and other liabilities | 74,563 |  |  |  | 77,942 |  |  |
Stockholders' equity | 738,372 |  |  |  | 715,485 |  |  |
Total average liabilities and stockholders' equity | $ | 7,858,020 |  |  |  | $ | 7,924,751 |  |  |
Net FTE interest income (non-GAAP) (5) |  | $ | 48,927 |  |  |  | $ | 44,202 |  |
Less FTE adjustments (4) |  | 2,017 |  |  |  | 2,112 |  |
Net Interest Income |  | $ | 46,910 |  |  |  | $ | 42,090 |  |
Net FTE interest margin (Non-GAAP) (4)(5) |  |  | 2.66 | % |  |  | 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.
(6) Dividends on FHLB stock.
(7) Includes interest earning deposits and interest earning time deposits.
(8) Average balances are calculated on a daily average basis |  |  |  |  |  |

53

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
Net interest income increased $2.0 million during the nine months ended September 30, 2024, to $135.5 million, when compared to the same period in 2023. Growth in average earning asset balances and a 1 basis point increase in the reported net FTE interest margin 2, to 2.60% for the nine months ended September 30, 2024 compared to the year ago period drove the net interest income growth versus the year ago comparable period. The net FTE interest margin expansion over the nine months ended September 30, 2024 was modest, as the increased contribution from interest-free funds was largely offset by the contraction in the net spread between the yield on earning assets and interest-bearing liabilities.
2 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
54

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
The following are the average balance sheets for the nine months ended (dollars in thousands):

| Average Balance Sheet
| (Dollars in Thousands, Unaudited)
| Nine months ended
| September 30, 2024 | September 30, 2023
| Average Balance (8) | Interest(4) | Average Rate(4) | Average Balance (8) | Interest(4) | Average Rate(4)
Assets |  |  |  |  |  |
Interest earning assets |  |  |  |  |  |
Federal funds sold | $ | 144,576 |  | $ | 5,892 |  | 5.44 | % | $ | 43,976 |  | $ | 1,706 |  | 5.19 | %
Interest earning deposits (7) | 8,602 |  | 300 |  | 4.66 | % | 8,597 |  | 254 |  | 3.95 | %
Federal Home Loan Bank stock (6) | 48,553 |  | 3,911 |  | 10.76 | % | 32,909 |  | 1,531 |  | 6.22 | %
Investment securities - taxable (1) | 1,312,421 |  | 19,570 |  | 1.99 | % | 1,673,174 |  | 24,722 |  | 1.98 | %
Investment securities - non-taxable (1) | 1,135,734 |  | 24,225 |  | 2.85 | % | 1,258,345 |  | 27,363 |  | 2.91 | %
Total investment securities | 2,448,155 |  | 43,795 |  | 2.39 | % | 2,931,519 |  | 52,085 |  | 2.38 | %
Loans receivable (2) (3) | 4,629,363 |  | 215,343 |  | 6.21 | % | 4,216,817 |  | 179,697 |  | 5.70 | %
Total interest earning assets | 7,279,249 |  | 269,241 |  | 4.94 | % | 7,233,818 |  | 235,273 |  | 4.35 | %
Non-interest earning assets |  |  |  |  |  |
Cash and due from banks | 107,578 |  |  |  | 102,264 |  |  |
Allowance for credit losses | (50,806) |  |  |  | (49,839) |  |  |
Other assets | 485,693 |  |  |  | 579,203 |  |  |
Total average assets | $ | 7,821,714 |  |  |  | $ | 7,865,446 |  |  |
Liabilities and Stockholders' Equity |  |  |  |  |  |
Interest bearing liabilities |  |  |  |  |  |
Interest bearing deposits | $ | 3,348,104 |  | $ | 50,889 |  | 2.03 | % | $ | 3,362,006 |  | $ | 31,197 |  | 1.24 | %
Time deposits | 1,166,968 |  | 36,335 |  | 4.16 | % | 1,132,815 |  | 27,284 |  | 3.22 | %
Borrowings | 1,178,180 |  | 31,403 |  | 3.56 | % | 1,137,289 |  | 28,702 |  | 3.37 | %
Repurchase agreements | 128,887 |  | 2,871 |  | 2.98 | % | 138,706 |  | 2,011 |  | 1.94 | %
Subordinated notes | 55,629 |  | 2,490 |  | 5.98 | % | 58,947 |  | 2,641 |  | 5.99 | %
Junior subordinated debentures issued to capital trusts | 57,334 |  | 3,668 |  | 8.55 | % | 57,108 |  | 3,469 |  | 8.12 | %
Total interest bearing liabilities | 5,935,102 |  | 127,656 |  | 2.87 | % | 5,886,871 |  | 95,304 |  | 2.16 | %
Non-interest bearing liabilities |  |  |  |  |  |
Demand deposits | 1,080,367 |  |  |  | 1,200,133 |  |  |
Accrued interest payable and other liabilities | 79,154 |  |  |  | 71,280 |  |  |
Stockholders' equity | 727,091 |  |  |  | 707,162 |  |  |
Total average liabilities and stockholders' equity | $ | 7,821,714 |  |  |  | $ | 7,865,446 |  |  |
Net FTE interest income (non-GAAP) (5) |  | $ | 141,585 |  |  |  | $ | 139,969 |  |
Less FTE adjustments (4) |  | 6,108 |  |  |  | 6,482 |  |
Net Interest Income |  | $ | 135,477 |  |  |  | $ | 133,487 |  |
Net FTE interest margin (Non-GAAP) (4)(5) |  |  | 2.60 | % |  |  | 2.59 | %
(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.
(6) Dividends on FHLB stock.
(7) Includes interest earning deposits and interest earning time deposits.
(8) Average balances are calculated on a daily average basis

55

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
The following table illustrates the impact of changes in the volume of interest earning assets and interest bearing liabilities and interest rates on net interest income for the periods indicated.

| Three Months Ended September 30, 2024 vs. Three Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2024 vs. Nine Months Ended September 30, 2023
| Total Change |  | Change Due to Volume |  | Change Due To Rate |  | Total Change |  | Change Due to Volume |  | Change Due To Rate
Interest Income |  |  |  |  |  |  |  |  |  |  |
Federal funds sold | $ | (387) |  |  | $ | (366) |  |  | $ | (21) |  |  | $ | 4,186 |  |  | $ | 4,096 |  |  | $ | 90 |
Interest earning deposits | 12 |  |  | 8 |  |  | 4 |  |  | 46 |  |  | — |  |  | $ | 46 |
Federal Home Loan Bank stock | 989 |  |  | 451 |  |  | 538 |  |  | 2,380 |  |  | 938 |  |  | $ | 1,442 |
Investment securities - taxable | (1,644) |  |  | (1,744) |  |  | 100 |  |  | (5,152) |  |  | (5,377) |  |  | $ | 225 |
Investment securities - non-taxable | (692) |  |  | (683) |  |  | (9) |  |  | (2,479) |  |  | (2,623) |  |  | $ | 144 |
Loans receivable | 12,485 |  |  | 7,646 |  |  | 4,839 |  |  | 35,361 |  |  | 18,412 |  |  | $ | 16,949 |
Total interest income | $ | 10,763 |  |  | $ | 5,312 |  |  | $ | 5,451 |  |  | $ | 34,342 |  |  | $ | 15,446 |  |  | $ | 18,896 |
Interest Expense |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits | 5,524 |  |  | 474 |  |  | $ | 5,050 |  |  | $ | 19,692 |  |  | $ | (130) |  |  | $ | 19,822 |
Time deposits | 559 |  |  | (2,027) |  |  | 2,586 |  |  | 9,051 |  |  | 846 |  |  | $ | 8,205 |
Borrowings | (178) |  |  | (772) |  |  | 594 |  |  | 2,701 |  |  | 1,055 |  |  | $ | 1,646 |
Repurchase agreements | 85 |  |  | (201) |  |  | 286 |  |  | 860 |  |  | (151) |  |  | $ | 1,011 |
Subordinated notes | (50) |  |  | (148) |  |  | 98 |  |  | (151) |  |  | (149) |  |  | $ | (2) |
Junior subordinated debentures issued to capital trusts | 3 |  |  | 14 |  |  | (11) |  |  | 199 |  |  | 14 |  |  | $ | 185 |
Total interest expense | 5,943 |  |  | (2,660) |  |  | 8,603 |  |  | 32,352 |  |  | 1,485 |  |  | 30,867 |
Net interest income | $ | 4,820 |  |  | $ | 7,972 |  |  | $ | (3,152) |  |  | $ | 1,990 |  |  | $ | 13,961 |  |  | $ | (11,971) |

Non-Interest Income

| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30, |  | September 30, |  | September 30,
(Dollars in Thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Non-interest Income |  |  |  |  |  |  |
Service charges on deposit accounts | $ | 3,320 |  |  | $ | 3,086 |  |  | $ | 9,664 |  |  | $ | 9,135 |
Wire transfer fees | 123 |  |  | 120 |  |  | 337 |  |  | 345 |
Interchange fees | 3,511 |  |  | 3,186 |  |  | 10,446 |  |  | 9,637 |
Fiduciary activities | 1,394 |  |  | 1,206 |  |  | 4,081 |  |  | 3,728 |
Gains (losses) on sale of investment securities | — |  |  | — |  |  | — |  |  | (480) |
Gain on sale of mortgage loans | 1,622 |  |  | 1,582 |  |  | 3,144 |  |  | 3,372 |
Mortgage servicing income net of impairment | 412 |  |  | 631 |  |  | 1,301 |  |  | 1,984 |
Increase in cash value of bank owned life insurance | 349 |  |  | 1,055 |  |  | 965 |  |  | 3,051 |
Other income | 780 |  |  | 964 |  |  | 1,987 |  |  | 1,675 |
Total non-interest income | $ | 11,511 |  |  | $ | 11,830 |  |  | $ | 31,925 |  |  | $ | 32,447 |

56

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
Total non-interest income declined $0.3 million for the three months ended September 30, 2024 compared to the same period in 2023, and declined $0.5 million for the nine months ended September 30, 2024 compared to the same period in 2023. Primary drivers of the periodic changes are noted below.
Service charges on deposit accounts increased $0.2 million for the three months ended September 30, 2024 and $0.5 million for the nine months ended September 30, 2024, as compared to the same periods in 2023. The increases compared to the year ago periods were primarily a result of higher transaction-based fee activity in the current period.
Interchange fees, which include fees earned on qualified debit card volume and merchant processing fees, increased $0.3 million for the three months ended September 30, 2024 and $0.8 million for the nine months ended September 30, 2024, as compared to the same periods in 2023. The increases were primarily driven by growth in qualified debit card volume for both periods.
Mortgage servicing income decreased $0.2 million for the three months ended September 30, 2024 and $0.7 million for the nine months ended September 30, 2024, as compared to the same periods in 2023. The decrease was primarily driven by higher levels of amortization expense of mortgage servicing rights in the current period.
Cash value of bank owned life insurance decreased $0.7 million for the three months ended September 30, 2024 and $2.1 million for the nine months ended September 30, 2024, as compared to the same periods in 2023. The declines were due to the surrender of several policies during the fourth quarter of 2023.
Other income, which includes various miscellaneous income items as well as fair market value adjustments to certain other assets, increased by $0.3 million during the nine months ended September 30, 2024 primarily related to positive fair market value adjustments on certain marketable securities.
Non-Interest Expense

| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30, |  | September 30, |  | September 30,
(Dollars in Thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Non-interest Expense |  |  |  |  |  |  |
Salaries and employee benefits | $ | 21,829 |  |  | $ | 20,058 |  |  | $ | 62,680 |  |  | $ | 58,932 |
Net occupancy expenses | 3,207 |  |  | 3,283 |  |  | 9,945 |  |  | 10,095 |
Data processing | 2,977 |  |  | 2,999 |  |  | 8,020 |  |  | 8,684 |
Professional fees | 676 |  |  | 707 |  |  | 1,997 |  |  | 1,873 |
Outside services and consultants | 3,677 |  |  | 2,316 |  |  | 10,094 |  |  | 7,548 |
Loan expense | 1,034 |  |  | 1,120 |  |  | 2,791 |  |  | 3,635 |
FDIC insurance expense | 1,204 |  |  | 1,300 |  |  | 3,839 |  |  | 2,680 |
Core deposit intangible amortization | 844 |  |  | 903 |  |  | 2,560 |  |  | 2,709 |
Other losses | 297 |  |  | 188 |  |  | 828 |  |  | 543 |
Other expense | 3,527 |  |  | 3,294 |  |  | 11,147 |  |  | 10,255 |
Total non-interest expense | $ | 39,272 |  |  | $ | 36,168 |  |  | $ | 113,901 |  |  | $ | 106,954 |

Non-interest expense increased $3.1 million for the three months ended September 30, 2024 compared to the same period in 2023, primarily the result of higher expenses related to outside services and consultants, salaries and employee benefits, and other expenses, which was partially mitigated by lower expenses related to FDIC insurance expense and net occupancy expense. Non-interest expense increased $6.9 million for the nine months ended September 30, 2024 compared to the same period in 2023, primarily the result of higher expenses related to salaries and employee benefits, outside services and consultants, FDIC insurance, and other expense.
Salaries and employee benefits expense increased by $1.8 million for the three months ended September 30, 2024, and $3.7 million for the nine months ended September 30, 2024, when compared to the same periods a year ago. The increase
57

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
in both periods is partially attributable to growth in salary expense related to ongoing hiring efforts in revenue generating roles in commercial lending, equipment finance and treasury management. In addition, the current period was unfavorably impacted by an expense related to a legacy benefits program and additional compensation-related accrual relative to the prior periods.
Outside services and consultant expense increased by $1.4 million for the three months ended September 30, 2024, and $2.5 million for the nine months ended September 30, 2024, when compared to the same periods a year ago. The increase in both periods is related to ongoing strategic initiatives.
FDIC insurance expense increased by $1.2 million in the nine months ended September 30, 2024 compared to the year ago period. The increase in the period related to higher incurred assessment rates.
Other expenses, which includes corporate and other service expenses, increased by $0.2 million for the three months ended September 30, 2024 when compared to the same period in 2023, and increased by $0.9 million for the nine months ended September 30, 2024 when compared to the same period in 2023.
Provision and Allowance for Credit Losses on Loans and Liability for Unfunded Lending Commitments

| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Allowance for Credit Losses on Loans |  |  |  |  |  |  |
Balance at beginning of period | $ | 52,215 |  |  | $ | 49,976 |  |  | $ | 50,029 |  |  | $ | 50,464 |
Provision for credit losses on loans | 1,044 |  |  | 520 |  |  | 4,128 |  |  | 856 |
Net loan (charge-offs) recoveries: |  |  |  |  |  |  |
Commercial | $ | 52 |  |  | $ | (217) |  |  | $ | 167 |  |  | $ | (593) |
Residential Real estate | 9 |  |  | 39 |  |  | 18 |  |  | 55 |
Mortgage warehouse | — |  |  | — |  |  | — |  |  | — |
Consumer | (439) |  |  | (619) |  |  | (1,461) |  |  | (1,083) |
Total net loan charge-offs | $ | (378) |  |  | $ | (797) |  |  | $ | (1,276) |  |  | $ | (1,621) |
Balance at end of period | $ | 52,881 |  |  | $ | 49,699 |  |  | $ | 52,881 |  |  | $ | 49,699 |
Liability for Unfunded Lending Commitments |  |  |  |  |  |  |
Balance at beginning of period | $ | 705 |  |  | $ | 989 |  |  | $ | 615 |  |  | $ | 403 |
Provision (reversal) for credit losses on unfunded lending commitments | — |  |  | (257) |  |  | 90 |  |  | 329 |
Balance at end of period | $ | 705 |  |  | $ | 732 |  |  | $ | 705 |  |  | $ | 732 |
Allowance for Credit Losses on Loans and Liability for Unfunded Lending Commitments | $ | 53,586 |  |  | $ | 50,431 |  |  | $ | 53,586 |  |  | $ | 50,431 |

Horizon assesses the adequacy of its Allowance for Credit Losses (“ACL”) by regularly reviewing the performance of its loan portfolio against various economic backdrops, which periodically change. During the third quarter of 2024, the Company recorded a provision for credit losses on loans of $1.0 million. This compares to a provision for credit losses on loans of $0.3 million during the third quarter of 2023. The increase in the provision for credit losses when compared to the year ago period was primarily attributable to changes in loan mix and in the economic forecast.
For the three months ended September 30, 2024, net loan charge-offs decreased by $0.4 million to $0.4 million, compared to $0.8 million in the third quarter of last year.
The provision for credit losses on loans of $4.2 million for the nine months ended September 30, 2024 increased by $3.0 million when compared to the prior year period, which is primarily attributable to loan growth and the change in loan mix.
58

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
For the nine months ended September 30, 2024, net loan charge-offs decreased by $0.3 million to $1.3 million compared to $1.6 million in the prior year period.
The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.10% at September 30, 2024, compared to 1.14% at September 30, 2023.
As of September 30, 2024, the liability for unfunded lending commitments was relatively unchanged at $0.7 million when compared to the third quarter of last year.
Income Taxes
The Company’s income tax expense for the third quarter of 2024 was $0.1 million c ompared to $1.3 million for the third quarter of 2023, resulting in effective tax rates of 0.4% and 7.3%, respectively. The decrease in the effective tax rate for the third quarter 2024 is primarily due to the increase in the net realizable tax credits for the current year.
The Company’s income tax expense for the first nine months of 2024 was $3.0 million compared to $4.6 million for the same period in 2023, resulting in effective tax rates of 6.0% and 8.0%, respectively. The decrease in the effective tax rate for the first nine months 2024 is primarily due to the increase in net realizable tax credits in the current period.
The effective income tax rates differed from the U.S. statutory federal income tax rates of 21% during the comparable periods primarily due to the effect of tax exempt income from securities, loans, and life insurance policies, and net tax benefits from tax credit investments.
Financial Condition
Total assets decreased by $13.0 million, or 0.2%, as of September 30, 2024, from $7.9 billion as of December 31, 2023. The decrease in total assets is primarily due to decreases in cash and cash equivalents of $291.7 million over the period, or 55.4%, to $234.8 million as of September 30, 2024, and a decrease in total securities balances of $63.3 million, to $2.4 billion, partially offset by growth in loans HFI of $383.5 million, or 8.8%, to $4.8 billion as of September 30, 2024.
Total investment securities decreased $63.3 million, or 2.5%, to $2.4 billion as of September 30, 2024 from $2.5 billion as of December 31, 2023, primarily as a result of amortization and maturities. There were no purchases of investment securities during the first nine months of 2024.
Total loans HFI increased to $4.8 billion as of September 30, 2024 compared to $4.4 billion as of December 31, 2023, led by organic commercial loan growth of $239.1 million. The company continues to maintain a balanced growth profile across various geographies, products and industries, and holds a diverse lending portfolio consisting primarily of commercial real estate, consumer, residential and commercial and industrial portfolios.
Total deposit balances increased by $62.1 million, or 1.1%, to $5.7 billion on September 30, 2024 when compared to balances as of December 31, 2023. The Company maintains a granular and tenured deposit base, with a continued focus on core commercial and consumer deposit gathering.
Total borrowings decreased by $87.9 million, or 6.5%, to $1.3 billion as of September 30, 2024 when compared to balances as of December 31, 2023, primarily related to repayment of a portion of Federal Home Loan Bank advances in August.
59

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
Investment securities were comprised of the following as of (dollars in thousands):

| September 30, 2024 |  | December 31, 2023
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Available for sale |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 69,421 |  |  | $ | 63,245 |  |  | $ | 72,938 |  |  | $ | 64,377 |
State and municipal | 351,507 |  |  | 306,025 |  |  | 353,299 |  |  | 304,030 |
Federal agency collateralized mortgage obligations | 3,413 |  |  | 3,152 |  |  | 3,931 |  |  | 3,580 |
Federal agency mortgage–backed pools | 151,844 |  |  | 132,696 |  |  | 161,130 |  |  | 137,297 |
Corporate notes | 40,559 |  |  | 36,052 |  |  | 43,317 |  |  | 37,967 |
Total available for sale investment securities | $ | 616,744 |  |  | $ | 541,170 |  |  | $ | 634,615 |  |  | $ | 547,251 |
Held to maturity |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 283,851 |  |  | $ | 252,034 |  |  | $ | 287,259 |  |  | $ | 245,960 |
State and municipal | 1,056,869 |  |  | 908,320 |  |  | 1,088,499 |  |  | 939,361 |
Federal agency collateralized mortgage obligations | 47,232 |  |  | 40,791 |  |  | 51,325 |  |  | 43,479 |
Federal agency mortgage–backed pools | 308,725 |  |  | 271,084 |  |  | 323,649 |  |  | 275,028 |
Private labeled mortgage–backed pools | 29,975 |  |  | 26,539 |  |  | 32,329 |  |  | 27,734 |
Corporate notes | 161,885 |  |  | 141,679 |  |  | 162,734 |  |  | 137,196 |
Total held to maturity investment securities | $ | 1,888,537 |  |  | $ | 1,640,447 |  |  | $ | 1,945,795 |  |  | $ | 1,668,758 |

Investment securities available for sale decreased $6.1 million since December 31, 2023 to $541.2 million as of September 30, 2024, and securities held to maturity decreased $57.3 million since December 31, 2023 to $1.9 billion as of September 30, 2024. The decrease in total investments was due to principal amortization and maturities, and there were no purchases of investment securities through the first nine months of 2024.
Credit Quality
The ACL balance at September 30, 2024 was $52.9 million, or 1.10% of period-end loans HFI compared to an ACL balance of $50.0 million at December 31, 2023 or 1.09% of loans HFI. The increase in the ACL was primarily due to the growth in commercial loans.
As of September 30, 2024, total non-accrual loans increased by $3.9 million, or 19.6%, from December 31, 2023, to 0.49% of total loans HFI. Total non-performing assets increased $3.8 million, or 17.4%, from December 31, 2023, to 0.32% of total assets.
During the three months ended September 30, 2024, net charge-offs were $0.4 million, or 3 basis points annualized of average loans in the period, down from $0.7 million, or 7 basis point annualized of average loans in the year ago comparable period. During the nine months ended September 30, 2024, net charge-offs were $1.3 million, or 4 basis points annualized of average loans in the period, compared with $1.6 million, or 4 basis point annualized of average loans in the year ago comparable period.
60

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023

| Credit Quality
| (Dollars in Thousands Except Ratios, Unaudited)
| Quarter Ended
| September 30, |  |  | December 31,
| 2024 |  |  | 2023
Non-accrual loans |  |  |  |
Commercial | $ | 6,830 |  |  |  | $ | 7,362 |
Residential Real estate | 9,529 |  |  |  | 8,058 |
Mortgage warehouse | — |  |  |  | — |
Consumer | 7,208 |  |  |  | 4,290 |
Total non-accrual loans | $ | 23,567 |  |  |  | $ | 19,710 |
90 days and greater delinquent - accruing interest | $ | 819 |  |  |  | $ | 559 |
Total non-performing loans | $ | 24,386 |  |  |  | $ | 20,269 |
Other real estate owned |  |  |  |
Commercial | $ | 1,158 |  |  |  | $ | 1,124 |
Residential Real estate | — |  |  |  | 182 |
Mortgage warehouse | — |  |  |  | — |
Consumer | 36 |  |  |  | 205 |
Total other real estate owned | $ | 1,194 |  |  |  | $ | 1,511 |
Total non-performing assets | $ | 25,580 |  |  |  | $ | 21,780 |
Net charge-offs (recoveries) |  |  |  |
Commercial | $ | (52) |  |  |  | $ | 233 |
Residential Real estate | (9) |  |  |  | 21 |
Mortgage warehouse | — |  |  |  | — |
Consumer | 439 |  |  |  | 531 |
Total net charge-offs | $ | 378 |  |  |  | $ | 785 |
Allowance for credit losses |  |  |  |
Commercial | $ | 32,854 |  |  |  | $ | 29,736 |
Residential Real estate | 2,675 |  |  |  | 2,503 |
Mortgage warehouse | 862 |  |  |  | 481 |
Consumer | 16,490 |  |  |  | 17,309 |
Total allowance for credit losses | $ | 52,881 |  |  |  | $ | 50,029 |
Credit quality ratios |  |  |  |
Non-accrual loans to HFI loans | 0.49 | % |  |  | 0.45 | %
Non-performing assets to total assets | 0.32 | % |  |  | 0.27 | %
Annualized net charge-offs of average total loans | 0.03 | % |  |  | 0.07 | %
Allowance for credit losses to HFI loans | 1.10 | % |  |  | 1.13 | %

61

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
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 FHLB. At September 30, 2024, in addition to liquidity available from the normal operating, funding, and investing activities of Horizon, the Bank had approximately $1.52 billion in unused credit lines with various money center banks, including the FHLB and the FRB Discount Window compared to $1.41 billion at December 31, 2023.
The cash flows from the operating, investing and financing activities of the Company resulted in a net decrease in cash, cash equivalents and restricted cash of $291.7 million during the first nine months of 2024, as reported in the consolidated statements of cash flows in this report. Operating activities, consisting mainly of net income adjusted for certain non-cash items, provided cash flow of $54.7 million and have historically been a stable source of funds. Investing activities, which occur mainly in the loan and investment securities portfolios, used cash of $322.4 million mainly due to growth in the loan portfolio, which used cash of $413.4 million. Financing activities used cash of $24.0 million, largely resulting from the repayment of long-term borrowings of $563.1 million and $21.3 million in dividends paid on common stock during the first nine months of 2024.
Capital Resources
The capital resources of Horizon and the Bank exceeded regulatory capital ratios for “well capitalized” banks at September 30, 2024. Stockholders’ equity totaled $754.8 million as of September 30, 2024, compared to $718.8 million as of December 31, 2023. For the nine months ended September 30, 2024, the ratio of average stockholders’ equity to average assets was 9.30% compared to 8.97% for the twelve months ended December 31, 2023. The increase in stockholders’ equity during the period was due to net income generated during the period and the improved market value of securities available for sale, offset by cash dividends paid to common shareholders.
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 $0.80 compared to December 31, 2023.
Tangible common equity 1 totaled $588.5 million at September 30, 2024, and the ratio of tangible common equity to tangible assets 1 was 7.58% at September 30, 2024. Tangible book value, which excludes intangible assets from total equity, per common share 1 was $13.46, increasing $0.87 compared to December 31, 2023.
Horizon declared common stock dividends in the amount of $0.48 per share during the first nine months of 2024 and $0.48 per share for the same period in 2023. The dividend payout ratio (dividends as a percent of basic earnings per share) was 45.3% and 39.3% for the first nine months of 2024 and 2023, respectively. For additional information regarding dividends, see Horizon’s 2023 Annual Report on Form 10–K.
1 N on-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
62

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023
Use of Non-GAAP Financial Measures
In addition to financial measures presented in accordance with GAAP, this document refers to non-GAAP financial measures, which Horizon believes are helpful to investors and provide a greater understanding of our business and financial results without the impact of items or events that may obscure trends in the Company’s underlying performance. 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 document for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
(Dollars in Thousands, Unaudited)
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |  | September 30, |  | September 30,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2024 |  | 2023
Interest income (GAAP) | (A) | $ | 90,888 |  |  | $ | 86,981 |  |  | $ | 85,264 |  |  | $ | 83,514 |  |  | $ | 80,125 |  |  | $ | 263,133 |  |  | $ | 228,791 |
Taxable-equivalent adjustment: |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities - tax exempt (1) |  | $ | 1,677 |  |  | $ | 1,695 |  |  | $ | 1,715 |  |  | $ | 1,799 |  |  | $ | 1,861 |  |  | 5,087 |  |  | 5,746 |
Loan receivable (2) |  | 340 |  |  | 328 |  |  | 353 |  |  | 314 |  |  | 251 |  |  | 1,021 |  |  | 736 |
Total taxable-equivalent adjustment (3) |  | $ | 2,017 |  |  | $ | 2,023 |  |  | $ | 2,068 |  |  | $ | 2,113 |  |  | $ | 2,112 |  |  | $ | 6,108 |  |  | $ | 6,482 |
Interest income (non-GAAP) | (B) | $ | 92,905 |  |  | $ | 89,004 |  |  | $ | 87,332 |  |  | $ | 85,627 |  |  | $ | 82,237 |  |  | $ | 269,241 |  |  | $ | 235,273 |
Interest expense (GAAP) | (C) | $ | 43,978 |  |  | $ | 41,702 |  |  | $ | 41,976 |  |  | $ | 41,257 |  |  | $ | 38,035 |  |  | $ | 127,656 |  |  | $ | 95,304 |
Net interest income (GAAP) | (D) =(A) - (C) | $ | 46,910 |  |  | $ | 45,279 |  |  | $ | 43,288 |  |  | $ | 42,257 |  |  | $ | 42,090 |  |  | $ | 135,477 |  |  | $ | 133,487 |
Net FTE interest income (non-GAAP) | (E) = (B) - (C) | $ | 48,927 |  |  | $ | 47,302 |  |  | $ | 45,356 |  |  | $ | 44,370 |  |  | $ | 44,202 |  |  | $ | 141,585 |  |  | $ | 139,969 |
Average interest earning assets | (F) | $ | 7,330,263 |  |  | $ | 7,212,788 |  |  | $ | 7,293,559 |  |  | $ | 7,239,034 |  |  | $ | 7,286,611 |  |  | $ | 7,279,249 |  |  | $ | 7,233,818 |
Net FTE interest margin (non-GAAP) | (G) = (E*) / (F) | 2.66 | % |  | 2.64 | % |  | 2.50 | % |  | 2.43 | % |  | 2.41 | % |  | 2.60 | % |  | 2.59 | %
(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
(3) 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 for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
*Annualized

63

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition
And Results of Operations
For the Three and Nine Months ended September 30, 2024 and 2023

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |  | September 30, |  | September 30,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2024 |  | 2023
Net income (loss) (GAAP) | (A) | $ | 18,180 |  |  | $ | 14,140 |  |  | $ | 13,991 |  |  | $ | (25,215) |  |  | $ | 16,205 |  |  | $ | 46,311 |  |  | $ | 53,196 |
Average stockholders' equity | (B) | $ | 738,372 |  |  | $ | 726,332 |  |  | $ | 725,083 |  |  | $ | 702,793 |  |  | $ | 715,485 |  |  | $ | 727,091 |  |  | $ | 707,162 |
Average intangible assets | (C) | 166,819 |  |  | 167,659 |  |  | 168,519 |  |  | 169,401 |  |  | 170,301 |  |  | $ | 167,663 |  |  | $ | 171,199 |
Average tangible equity (Non-GAAP) | (D) = (B) - (C) | $ | 571,553 |  |  | $ | 558,673 |  |  | $ | 556,564 |  |  | $ | 533,392 |  |  | $ | 545,184 |  |  | $ | 559,428 |  |  | $ | 535,963 |
Return on average tangible common equity ("ROACE") (non-GAAP) | (E) = (A*) / (D) | 12.65 | % |  | 10.18 | % |  | 10.11 | % |  | (18.76) | % |  | 11.79 | % |  | 11.06 | % |  | 13.27 | %
*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,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
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 | %

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,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
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 |

64

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest rate risk management focuses on monitoring and maintaining variances in the Company's net interest income profile due to changes in interests rates to within Board-approved policy limits. The Company primarily uses earnings simulation models to expose net interest income to 12- and 24- month sensitivities to various movements in rates. Simulations are modeled quarterly to include scenarios where market rates change instantaneously up or down in a parallel or non-parallel manner, which account for the periodic changes in the balance sheet composition. For further discussion of the Company’s market risk, see the Interest Rate Sensitivity section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s 2023 Annual Report on Form 10-K.
The table below shows the modelled effects of an immediate and parallel shift in interest rates on the Company's net interest income profile over a one-year horizon versus the base case net interest income in a flat rate scenario. The simulation model assumes a static balance sheet over that twelve month period, and utilizes various non-maturity interest bearing deposit beta assumptions, based on the underlying products, ranging from 12% to 80% in the disclosed model outputs below. Deposit beta is an estimate for how quickly interest-bearing deposit pricing will change for a given change in interest rates. Because of limitations inherent in any approach used to measure interest rate risk, simulation results are not intended as a forecast of the actual effect of a change in market interest rates on our results, but rather to provide insight into our current interest rate exposure and to assist in the execution of appropriate asset/liability management strategies. As shown below, the model output would indicate that as of September 30, 2024, the Company's interest-bearing liabilities are projected to reprice at a faster pace than interest-earning assets for the next 100 basis points of declining interest rates.

| September 30, 2024
(Dollars in millions) | $ Change in Net Interest Income | % Change in Net Interest Income
200 basis points rising | $ | (17.7) |  | (7.9) | %
100 basis points rising | (7.9) |  | (3.5) | %
100 basis points falling | $ | 2.8 |  | 1.3 | %
200 basis points falling | (2.7) |  | (1.2) | %

65

Table of Contents
HORIZON BANCORP, INC. AND SUBSIDIARIES
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Based on an evaluation of disclosure controls and procedures as of September 30, 2024, Horizon’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of Horizon’s disclosure controls (as defined in Exchange Act Rule 13a–15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)). Based on such evaluation, such officers have concluded that, as of the evaluation date, Horizon's disclosure controls and procedures are effective to ensure that the information required to be disclosed by Horizon in the reports it files under the Exchange Act is recorded, processed, summarized and reported within the time specified in Securities and Exchange Commission's rules and forms and are designed to ensure that information required to be disclosed in those reports is accumulated and communicated to management as appropriate to allow timely decisions regarding disclosures.
Changes in Internal Control Over Financial Reporting
Horizon’s management, including its Chief Executive Officer and Chief Financial Officer, also have concluded that during the fiscal quarter ended September 30, 2024, there have been no changes in Horizon’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, Horizon’s internal control over financial reporting.
66

HORIZON BANCORP, INC. AND SUBSIDIARIES
Part II – Other Information
ITEM 1. LEGAL PROCEEDINGS
For information regarding the Company's legal proceedings, see "Part I. Item 1. Note 14 – General Litigation," which is incorporated herein by reference.
ITEM 1A. RISK FACTORS
There have been no material changes from the factors previously disclosed under Item 1A of Horizon's Annual Report on Form 10–K for the fiscal year ended December 31, 2023.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a)Unregistered Sales of Equity Securities: Not Applicable
(b)Use of Proceeds: Not Applicable
(c)Repurchase of Our Equity Securities: Not Applicable

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS
(a) Exhibits

Exhibit No. | Description | Location
31.1 | Certification of Thomas M. Prame | Attached
31.2 | Certification of John R. Stewart | Attached
32 | Certification of Chief Executive and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Attached
101 | Inline Interactive Data Files | Attached
104 | The cover page from the Company’s Quarterly Report on Form 10–Q for the quarter ended September 30, 2024, has been formatted in Inline XBRL | Within the Inline XBRL document

67

Table of Contents
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 thereunto duly authorized.

|  | HORIZON BANCORP, INC.
November 12, 2024 |  | /s/ Thomas M. Prame
Date |  | Thomas M. Prame
|  | Chief Executive Officer
November 12, 2024 |  | /s/ John R. Stewart
Date |  | John R. Stewart
|  | Chief Financial Officer

68