Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Contact:			John R. Stewart, CFA
			EVP, Chief Financial Officer
Phone:			(219) 814–5833
Fax:			(219) 874–9280
Date:			October 23, 2024

FOR IMMEDIATE RELEASE

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

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

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

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

Third Quarter 2024 Highlights

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

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

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

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

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

1

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

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

Accretive Fourth Quarter 2024 Strategic Actions

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

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
			Three Months Ended
			September 30,						June 30,						March 31,						December 31,						September 30,
			2024						2024						2024						2023						2023
Income statement:
Net interest income			$	46,910					$	45,279					$	43,288					$	42,257					$	42,090
Credit loss expense			1,044						2,369						805						1,274						263
Non-interest income			11,511						10,485						9,929						(20,449)						11,830
Non-interest expense			39,272						37,522						37,107						39,330						36,168
Income tax expense			(75)						1,733						1,314						6,419						1,284
Net income			$	18,180					$	14,140					$	13,991					$	(25,215)					$	16,205
Per share data:
Basic earnings per share			$	0.42					$	0.32					$	0.32					$	(0.58)					$	0.37
Diluted earnings per share			0.41						0.32						0.32						(0.58)						0.37
Cash dividends declared per common share			0.16						0.16						0.16						0.16						0.16
Book value per common share			17.27						16.62						16.49						16.47						15.89
Market value - high			16.57						12.74						14.44						14.65						12.68
Market value - low			11.89						11.29						11.75						9.33						9.90
Weighted average shares outstanding - Basic			43,712,059						43,712,059						43,663,610						43,649,585						43,646,609
Weighted average shares outstanding - Diluted			44,112,321						43,987,187						43,874,036						43,649,585						43,796,069
Common shares outstanding (end of period)			43,712,059						43,712,059						43,726,380						43,652,063						43,648,501
Key ratios:
Return on average assets			0.92		%				0.73		%				0.72		%				(1.27)		%				0.81		%
Return on average stockholders' equity			9.80						7.83						7.76						(14.23)						8.99
Total equity to total assets			9.52						9.18						9.18						9.06						8.71
Total loans to deposit ratio			83.92						85.70						82.78						78.01						76.52
Allowance for credit losses to HFI loans			1.10						1.08						1.09						1.13						1.14
Annualized net charge-offs of average total loans(1)			0.03						0.05						0.04						0.07						0.07
Efficiency ratio			67.22						67.29						69.73						180.35						67.08
Key metrics (Non-GAAP)(2) :
Net FTE interest margin			2.66		%				2.64		%				2.50		%				2.43		%				2.41		%
Return on average tangible common equity			12.65						10.18						10.11						(18.76)						11.79
Tangible common equity to tangible assets			7.58						7.22						7.20						7.08						6.72
Tangible book value per common share			$	13.46					$	12.80					$	12.65					$	12.60					$	12.00
(1) Average total loans includes loans held for investment and held for sale.
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Income Statement Highlights

Net Interest Income

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

Provision for Credit Losses

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

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

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

Non-Interest Income

For the Quarter Ended			September 30,						June 30,						March 31,						December 31,						September 30,
(Dollars in Thousands)			2024						2024						2024						2023						2023
Non-interest Income
Service charges on deposit accounts			$	3,320					$	3,130					$	3,214					$	3,092					$	3,086
Wire transfer fees			123						113						101						103						120
Interchange fees			3,511						3,826						3,109						3,224						3,186
Fiduciary activities			1,394						1,372						1,315						1,352						1,206
Gains (losses) on sale of investment securities			—						—						—						(31,572)						—
Gain on sale of mortgage loans			1,622						896						626						951						1,582
Mortgage servicing income net of impairment			412						450						439						724						631
Increase in cash value of bank owned life insurance			349						318						298						658						1,055
Other income			780						380						827						1,019						964
Total non-interest income			$	11,511					$	10,485					$	9,929					$	(20,449)					$	11,830

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

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Non-Interest Expense

For the Quarter Ended			September 30,						June 30,						March 31,						December 31,						September 30,
(Dollars in Thousands)			2024						2024						2024						2023						2023
Non-interest Expense
Salaries and employee benefits			$	21,829					$	20,583					$	20,268					$	21,877					$	20,058
Net occupancy expenses			3,207						3,192						3,546						3,260						3,283
Data processing			2,977						2,579						2,464						2,942						2,999
Professional fees			676						714						607						772						707
Outside services and consultants			3,677						3,058						3,359						2,394						2,316
Loan expense			1,034						1,038						719						1,345						1,120
FDIC insurance expense			1,204						1,315						1,320						1,200						1,300
Core deposit intangible amortization			844						844						872						903						903
Other losses			297						515						16						508						188
Other expense			3,527						3,684						3,936						4,129						3,294
Total non-interest expense			$	39,272					$	37,522					$	37,107					$	39,330					$	36,168

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

Income Taxes

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

Balance Sheet

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

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

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

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

Total borrowings decreased by $86.4 million, or 7.0%, to $1.1 billion as of September 30, 2024, primarily related to the repayment of a portion of Federal Home Loan Bank advances, when compared to balances as of June 30, 2024.

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Capital

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

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

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

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

Credit Quality

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

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

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Earnings Conference Call

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

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

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

About Horizon Bancorp, Inc.

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

Use of Non-GAAP Financial Measures

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

Forward Looking Statements

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

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

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

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

			Condensed Consolidated Statements of Income
			(Dollars in Thousands Except Per Share Data, 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
Loans receivable			$	75,488					$	71,880					$	66,954					$	65,583					$	63,003					$	214,322					$	178,961
Investment securities - taxable			8,133						7,986						7,362						8,157						8,788						23,481						26,253
Investment securities - tax-exempt			6,310						6,377						6,451						6,767						7,002						19,138						21,617
Other			957						738						4,497						3,007						1,332						6,192						1,960
Total interest income			90,888						86,981						85,264						83,514						80,125						263,133						228,791
Interest Expense
Deposits			30,787						28,447						27,990						27,376						24,704						87,224						58,481
Borrowed funds			11,131						11,213						11,930						11,765						11,224						34,274						30,713
Subordinated notes			830						829						831						870						880						2,490						2,641
Junior subordinated debentures issued to capital trusts			1,230						1,213						1,225						1,246						1,227						3,668						3,469
Total interest expense			43,978						41,702						41,976						41,257						38,035						127,656						95,304
Net Interest Income			46,910						45,279						43,288						42,257						42,090						135,477						133,487
Provision for loan losses			1,044						2,369						805						1,274						263						4,218						1,185
Net Interest Income after Provision for Loan Losses			45,866						42,910						42,483						40,983						41,827						131,259						132,302
Non-interest Income
Service charges on deposit accounts			3,320						3,130						3,214						3,092						3,086						9,664						9,135
Wire transfer fees			123						113						101						103						120						337						345
Interchange fees			3,511						3,826						3,109						3,224						3,186						10,446						9,637
Fiduciary activities			1,394						1,372						1,315						1,352						1,206						4,081						3,728
Gains (losses) on sale of investment securities			—						—						—						(31,572)						—						—						(480)
Gain on sale of mortgage loans			1,622						896						626						951						1,582						3,144						3,372
Mortgage servicing income net of impairment			412						450						439						724						631						1,301						1,984
Increase in cash value of bank owned life insurance			349						318						298						658						1,055						965						3,051
Other income			780						380						827						1,019						964						1,987						1,675
Total non-interest income			11,511						10,485						9,929						(20,449)						11,830						31,925						32,447
Non-interest Expense
Salaries and employee benefits			21,829						20,583						20,268						21,877						20,058						62,680						58,932
Net occupancy expenses			3,207						3,192						3,546						3,260						3,283						9,945						10,095
Data processing			2,977						2,579						2,464						2,942						2,999						8,020						8,684
Professional fees			676						714						607						772						707						1,997						1,873
Outside services and consultants			3,677						3,058						3,359						2,394						2,316						10,094						7,548
Loan expense			1,034						1,038						719						1,345						1,120						2,791						3,635
FDIC insurance expense			1,204						1,315						1,320						1,200						1,300						3,839						2,680
Core deposit intangible amortization			844						844						872						903						903						2,560						2,709
Other losses			297						515						16						508						188						828						543
Other expense			3,527						3,684						3,936						4,129						3,294						11,147						10,255
Total non-interest expense			39,272						37,522						37,107						39,330						36,168						113,901						106,954
Income /(Loss) Before Income Taxes			18,105						15,873						15,305						(18,796)						17,489						49,283						57,795
Income tax expense			(75)						1,733						1,314						6,419						1,284						2,972						4,599
Net Income /(Loss)			$	18,180					$	14,140					$	13,991					$	(25,215)					$	16,205					$	46,311					$	53,196
Basic Earnings /(Loss) Per Share			$	0.42					$	0.32					$	0.32					$	(0.58)					$	0.37					$	1.06					$	1.22
Diluted Earnings/(Loss) Per Share			0.41						0.32						0.32						(0.58)						0.37						1.05						1.21

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Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

			Condensed Consolidated Balance Sheets
			(Dollars in Thousands)
			September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
Assets
Interest earning assets
Federal funds sold			$	113,912					$	34,453					$	161,704					$	401,672					$	71,576
Interest earning deposits			12,107						4,957						9,178						12,071						4,718
Interest earning time deposits			735						1,715						1,715						2,205						2,207
Federal Home Loan Bank stock			53,826						53,826						53,826						34,509						34,509
Investment securities, available for sale			541,170						527,054						535,319						547,251						865,168
Investment securities, held to maturity			1,888,379						1,904,281						1,925,725						1,945,638						1,966,483
Loans held for sale			2,069						2,440						922						1,418						2,828
Gross loans held for investment (HFI)			4,803,996						4,822,840						4,618,175						4,417,630						4,359,002
Total Interest earning assets			7,416,194						7,351,566						7,306,564						7,362,394						7,306,491
Non-interest earning assets
Allowance for credit losses			(52,881)						(52,215)						(50,387)						(50,029)						(49,699)
Cash			108,815						106,691						100,206						112,772						98,843
Cash value of life insurance			37,115						36,773						36,455						36,157						149,212
Other assets			119,026						165,656						160,593						177,061						152,280
Goodwill			155,211						155,211						155,211						155,211						155,211
Other intangible assets			11,067						11,910						12,754						13,626						14,530
Premises and equipment, net			93,544						93,695						94,303						94,583						94,716
Interest receivable			39,366						43,240						40,008						38,710						37,850
Total non-interest earning assets			511,263						560,961						549,143						578,091						652,943
Total assets			$	7,927,457					$	7,912,527					$	7,855,707					$	7,940,485					$	7,959,434
Liabilities
Savings and money market deposits			$	3,420,827					$	3,364,726					$	3,350,673					$	3,369,149					$	3,322,788
Time deposits			1,220,653						1,178,389						1,136,121						1,179,739						1,250,606
Borrowings			1,142,744						1,229,165						1,219,812						1,217,020						1,214,016
Repurchase agreements			122,399						128,169						139,309						136,030						142,494
Subordinated notes			55,703						55,668						55,634						55,543						59,007
Junior subordinated debentures issued to capital trusts			57,423						57,369						57,315						57,258						57,201
Total interest earning liabilities			6,019,749						6,013,486						5,958,864						6,014,739						6,046,112
Non-interest bearing deposits			1,085,535						1,087,040						1,093,076						1,116,005						1,126,703
Interest payable			11,400						11,240						7,853						22,249						16,281
Other liabilities			55,951						74,096						74,664						68,680						76,969
Total liabilities			7,172,635						7,185,862						7,134,457						7,221,673						7,266,065
Stockholders’ Equity
Preferred stock			—						—						—						—						—
Common stock			—						—						—						—						—
Additional paid-in capital			358,453						357,673						356,599						356,400						355,478
Retained earnings			454,050						442,977						435,927						429,021						461,325
Accumulated other comprehensive income (loss)			(57,681)						(73,985)						(71,276)						(66,609)						(123,434)
Total stockholders’ equity			754,822						726,665						721,250						718,812						693,369
Total liabilities and stockholders’ equity			$	7,927,457					$	7,912,527					$	7,855,707					$	7,940,485					$	7,959,434

10

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

			Loans and Deposits
			(Dollars in Thousands, Unaudited)
			September 30,						June 30,						March 31,						December 31,						September 30,						% Change
			2024						2024						2024						2023						2023						Q3'24 vs Q2'24						Q3'24 vs Q3'23
Commercial:
Commercial real estate			$	2,105,459					$	2,117,772					$	1,984,723					$	1,962,097					$	1,916,056					(1)		%				10		%
Commercial & Industrial			808,600						786,788						765,043						712,863						673,188						3		%				20		%
Total commercial			2,914,059						2,904,560						2,749,766						2,674,960						2,589,244						—		%				13		%
Residential Real estate			801,356						797,956						782,071						681,136						675,399						—		%				19		%
Mortgage warehouse			80,437						68,917						56,548						45,078						65,923						17		%				22		%
Consumer			1,008,144						1,051,407						1,029,790						1,016,456						1,028,436						(4)		%				(2)		%
Total loans held for investment			4,803,996						4,822,840						4,618,175						4,417,630						4,359,002						—		%				10		%
Loans held for sale			2,069						2,440						922						1,418						2,828						(15)		%				(27)		%
Total loans			$	4,806,065					$	4,825,280					$	4,619,097					$	4,419,048					$	4,361,830					—		%				10		%
Deposits:
Interest bearing deposits
Savings and money market deposits			$	3,420,827					$	3,364,726					$	3,350,673					$	3,369,149					$	3,322,788					2		%				3		%
Time deposits			1,220,653						1,178,389						1,136,121						1,179,739						1,250,606						4		%				(2)		%
Total Interest bearing deposits			4,641,480						4,543,115						4,486,794						4,548,888						4,573,394						2		%				1		%
Non-interest bearing deposits
Non-interest bearing deposits			1,085,535						1,087,040						1,093,076						1,116,005						1,126,703						—		%				(4)		%
Total deposits			$	5,727,015					$	5,630,155					$	5,579,870					$	5,664,893					$	5,700,097					2		%				—		%

11

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

			Average Balance Sheet
			(Dollars in Thousands, Unaudited)
			Three Months Ended
			September 30, 2024												June 30, 2024												September 30, 2023
			Average Balance			Interest(4)			Average Rate(4)						Average Balance			Interest(4)			Average Rate(4)						Average Balance			Interest(4)			Average Rate(4)
Assets
Interest earning assets
Federal funds sold			$	64,743		$	860		5.28		%				$	47,805		$	645		5.43		%				$	92,305		$	1,247		5.36		%
Interest earning deposits			8,781			97			4.39		%				7,662			93			4.88		%				8,018			85			4.21		%
Federal Home Loan Bank stock			53,826			1,607			11.88		%				53,827			1,521			11.36		%				34,509			618			7.10		%
Investment securities - taxable (1)			1,301,830			6,526			1.99		%				1,309,305			6,465			1.99		%				1,650,081			8,170			1.96		%
Investment securities - non-taxable (1)			1,125,295			7,987			2.82		%				1,132,065			8,072			2.87		%				1,220,998			8,863			2.88		%
Total investment securities			2,427,125			14,513			2.38		%				2,441,370			14,537			2.39		%				2,871,079			17,033			2.35		%
Loans receivable (2) (3)			4,775,788			75,828			6.32		%				4,662,124			72,208			6.23		%				4,280,700			63,254			5.89		%
Total interest earning assets			$	7,330,263		$	92,905		5.04		%				$	7,212,788		$	89,004		4.96		%				$	7,286,611		$	82,237		4.59		%
Non-interest earning assets
Cash and due from banks			$	108,609											$	108,319											$	100,331
Allowance for credit losses			(52,111)												(50,334)												(49,705)
Other assets			471,259												508,555												587,514
Total average assets			$	7,858,020											$	7,779,328											$	7,924,751
Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing deposits			$	3,386,177		$	18,185		2.14		%				$	3,334,490		$	16,814		2.03		%				$	3,267,594		$	12,661		1.54		%
Time deposits			1,189,148			12,602			4.22		%				1,134,590			11,633			4.12		%				1,271,104			12,043			3.76		%
Borrowings			1,149,952			10,221			3.54		%				1,184,172			10,278			3.49		%				1,180,452			10,399			3.50		%
Repurchase agreements			123,524			910			2.93		%				125,144			935			3.00		%				136,784			825			2.39		%
Subordinated notes			55,681			830			5.93		%				55,647			829			5.99		%				58,983			880			5.92		%
Junior subordinated debentures issued to capital trusts			57,389			1,230			8.53		%				57,335			1,213			8.51		%				57,166			1,227			8.52		%
Total interest bearing liabilities			$	5,961,871		$	43,978		2.93		%				$	5,891,378		$	41,702		2.85		%				$	5,972,083		$	38,035		2.53		%
Non-interest bearing liabilities
Demand deposits			$	1,083,214											$	1,080,676											$	1,159,241
Accrued interest payable and other liabilities			74,563												80,942												77,942
Stockholders' equity			738,372												726,332												715,485
Total average liabilities and stockholders' equity			$	7,858,020											$	7,779,328											$	7,924,751
Net FTE interest income (non-GAAP) (5)						$	48,927											$	47,302											$	44,202
Less FTE adjustments (4)						2,017												2,023												2,112
Net Interest Income						$	46,910											$	45,279											$	42,090
Net FTE interest margin (Non-GAAP) (4)(5)									2.66		%										2.64		%										2.41		%
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
(2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

12

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

			Credit Quality
			(Dollars in Thousands Except Ratios, Unaudited)
			Quarter Ended
			September 30,						June 30,						March 31,						December 31,						September 30,						% Change
			2024						2024						2024						2023						2023						3Q24 vs 2Q24						3Q24 vs 3Q23
Non-accrual loans
Commercial			$	6,830					$	4,321					$	5,493					$	7,362					$	6,919					58		%				(1)		%
Residential Real estate			9,529						8,489						8,725						8,058						7,644						12		%				25		%
Mortgage warehouse			—						—						—						—						—						—		%				—		%
Consumer			7,208						5,453						4,835						4,290						4,493						32		%				60		%
Total non-accrual loans			23,567						18,263						19,053						19,710						19,056						29		%				24		%
90 days and greater delinquent - accruing interest			819						1,039						108						559						392						(21)		%				109		%
Total non-performing loans			24,386						19,302						19,161						20,269						19,448						26		%				25		%
Other real estate owned
Commercial			$	1,158					$	1,111					$	1,124					$	1,124					$	1,287					4		%				(10)		%
Residential Real estate			—						—						—						182						32						—		%				(100)		%
Mortgage warehouse			—						—						—						—						—						—		%				—		%
Consumer			36						57						50						205						72						(37)		%				(50)		%
Total other real estate owned			$	1,194					$	1,168					$	1,174					$	1,511					$	1,391					2		%				(14)		%
Total non-performing assets			$	25,580					$	20,470					$	20,335					$	21,780					$	20,839					25		%				23		%
Loan data:
Accruing 30 to 89 days past due loans			$	18,087					$	19,785					$	15,154					$	16,595					$	13,089					(9)		%				38		%
Substandard loans			59,775						51,221						47,469						49,526						47,563						17		%				26		%
Net charge-offs (recoveries)
Commercial			(55)						57						(57)						233						142						(196)		%				(139)		%
Residential Real estate			(9)						(4)						(5)						21						(39)						(125)		%				77		%
Mortgage warehouse			—						—						—						—						—						—		%				—		%
Consumer			439						534						488						531						619						(18)		%				(29)		%
Total net charge-offs			375						587						426						785						722						(36)		%				(48)		%
Allowance for credit losses
Commercial			32,854						31,941						30,514						29,736						29,472						3		%				11		%
Residential Real estate			2,675						2,588						2,655						2,503						2,794						3		%				(4)		%
Mortgage warehouse			862						736						659						481						714						17		%				21		%
Consumer			16,490						16,950						16,559						17,309						16,719						(3)		%				(1)		%
Total allowance for credit losses			$	52,881					$	52,215					$	50,387					$	50,029					$	49,699					1		%				6		%
Credit quality ratios
Non-accrual loans to HFI loans			0.49		%				0.38		%				0.41		%				0.45		%				0.44		%
Non-performing assets to total assets			0.32		%				0.26		%				0.26		%				0.27		%				0.26		%
Annualized net charge-offs of average total loans			0.03		%				0.05		%				0.04		%				0.07		%				0.07		%
Allowance for credit losses to HFI loans			1.10		%				1.08		%				1.09		%				1.13		%				1.14		%

13

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
(Dollars in Thousands, Unaudited)
						Three Months Ended
						September 30,						June 30,						March 31,						December 31,						September 30,
						2024						2024						2024						2023						2023
Interest income (GAAP)			(A)			$	90,888					$	86,981					$	85,264					$	83,514					$	80,125
Taxable-equivalent adjustment:
Investment securities - tax exempt (1)						1,677						1,695						1,715						1,799						1,861
Loan receivable (2)						340						328						353						314						251
Interest income (non-GAAP)			(B)			92,905						89,004						87,332						85,627						82,237
Interest expense (GAAP)			(C)			43,978						41,702						41,976						41,257						38,035
Net interest income (GAAP)			(D) =(A) - (C)			46,910						45,279						43,288						42,257						42,090
Net FTE interest income (non-GAAP)			(E) = (B) - (C)			48,927						47,302						45,356						44,370						44,202
Average interest earning assets			(F)			7,330,263						7,212,788						7,293,559						7,239,034						7,286,611
Net FTE interest margin (non-GAAP)			(G) = (E*) / (F)			2.66		%				2.64		%				2.50		%				2.43		%				2.41		%
(1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
(2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

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

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
						Three Months Ended
						September 30,						June 30,						March 31,						December 31,						September 30,
						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		%

14

Horizon Bancorp, Inc. Reports Third Quarter 2024 Results

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
						Three Months Ended
						September 30,						June 30,						March 31,						December 31,						September 30,
						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

15