EX-99.1 2 hbnc-2025930earningsrelease.htm EX-99.1
Horizon Bancorp, Inc. Reports Third Quarter 2025 Results

Contact: | John R. Stewart, CFA
| EVP, Chief Financial Officer
Phone: | (219) 814–5833
Fax: | (219) 874–9280
Date: | October 22, 2025

FOR IMMEDIATE RELEASE
Horizon Bancorp, Inc. Reports Strong Third Quarter 2025 Results and Successful Execution of the Balance Sheet Repositioning
Michigan City, Indiana, October 22, 2025 (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 months ended September 30, 2025.
“Horizon’s third quarter results were highlighted by the successful execution of our previously announced strategic balance sheet repositioning, which has exceeded our initial expectations and is on pace to achieve the top tier financial outcomes outlined in our plan. At this point, there is little work left to be done, and the Company will continue its focus on improving shareholder value from a position of strength", President and CEO, Thomas Prame stated. "More importantly, underneath the specific impacts related to the balance sheet activities, our third quarter results further evidence the continued strength of the organization’s exceptional core community banking franchise. Our net interest margin continues to expand, the commercial loan engine is producing solid results, the core client-driven deposit franchise is growing, credit quality is excellent and expenses are well managed. As we look ahead to the end of 2025 and into 2026, we will remain disciplined in our execution, focusing on profitable growth and smart redeployment of our peer-leading capital generation, all focused on creating durable returns and sustainable long-term value for our shareholders."
Net loss for the three months ended September 30, 2025 was $222.0 million, or $(4.69) per diluted share, compared to net income of $20.6 million, or $0.47, for the second quarter of 2025 and $18.2 million, or $0.41 per diluted share, for the third quarter of 2024. As previously disclosed, results for the third quarter of 2025 included several items impacting non-interest income, non-interest expense and the provision for credit loss directly related to the Company's successful efforts during the quarter to repositioning the balance sheet.
Net loss for the nine months ended September 30, 2025 was $177.4 million, or $(3.94) per diluted share, compared to net income of $46.3 million, or $1.05, for the nine months ended September 30, 2024.
1

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results
Third Quarter 2025 Highlights
•Successful execution of strategic Balance Sheet transformation, positioning the bank for top quartile performance.
•Net interest income of $58.4 million increased 5.5% compared with $55.4 million for the three months ended June 30, 2025, and 24.5% compared with $46.9 million in the year ago period. Net interest margin, on a fully taxable equivalent ("FTE") basis 1, expanded for the eighth consecutive quarter, to 3.52%, compared with 3.23% for the three months ended June 30, 2025 and 2.66% for the three months ended September 30, 2024.
•Total loans held for investment ("HFI") decreased (13.0)% compared to the linked quarter annualized, with strong organic commercial loan growth of $57.9 million, or 7.0% annualized. The decrease in loans HFI is directly related to the continued planned runoff and the eventual sale of the Company's indirect auto portfolio of $176 million in the third quarter.
•Funding continued to trend favorably, with non-interest bearing deposits remaining flat. Savings and money market balances were specifically impacted by the planned high-cost deposit runoff related to the balance sheet repositioning. Overall interest-bearing liability cost decreased by 2 bps during the quarter.
•Credit quality remained strong, with annualized net charge offs of 0.07% of average loans during the third quarter. Non-performing assets remain well within expected ranges, with non-performing assets to total asset of 53 bps for the third quarter.
•While reported expenses were impacted by a couple of items related to the balance sheet activities in the quarter, when considering these items, expenses continued to be well managed compared with the second quarter of 2025. These results reflect management's continued commitment to generate positive operating leverage with a more efficient expense base.
1 N on-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
2

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results

| Financial Highlights
| (Dollars in Thousands Except Share and Per Share Data and Ratios)
| Three Months Ended
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
| 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Income statement: |  |  |  |  |  |  |  |  |
Net interest income | $ | 58,386 |  |  | $ | 55,355 |  |  | $ | 52,267 |  |  | $ | 53,127 |  |  | $ | 46,910 |
Provision for credit losses | (3,572) |  |  | 2,462 |  |  | 1,376 |  |  | 1,171 |  |  | 1,044 |
Non-interest income (loss) | (295,334) |  |  | 10,920 |  |  | 16,499 |  |  | (28,954) |  |  | 11,511 |
Non-interest expense | 52,952 |  |  | 39,417 |  |  | 39,306 |  |  | 44,935 |  |  | 39,272 |
Income tax expense (benefit) | (64,338) |  |  | 3,752 |  |  | 4,141 |  |  | (11,051) |  |  | (75) |
Net Income (Loss) | $ | (221,990) |  |  | $ | 20,644 |  |  | $ | 23,943 |  |  | $ | (10,882) |  |  | $ | 18,180 |
Per share data: |  |  |  |  |  |  |  |  |
Basic earnings (loss) per share | $ | (4.69) |  |  | $ | 0.47 |  |  | $ | 0.55 |  |  | $ | (0.25) |  |  | $ | 0.42 |
Diluted earnings (loss) per share | (4.69) |  |  | 0.47 |  |  | 0.54 |  |  | (0.25) |  |  | 0.41 |
Cash dividends declared per common share | 0.16 |  |  | 0.16 |  |  | 0.16 |  |  | 0.16 |  |  | 0.16 |
Book value per common share | 12.96 |  |  | 18.06 |  |  | 17.72 |  |  | 17.46 |  |  | 17.27 |
Market value - high | 16.88 |  |  | 15.88 |  |  | 17.76 |  |  | 18.76 |  |  | 16.57 |
Market value - low | 15.01 |  |  | 12.92 |  |  | 15.00 |  |  | 14.57 |  |  | 11.89 |
Weighted average shares outstanding - Basic | 47,311,642 |  |  | 43,794,490 |  |  | 43,777,109 |  |  | 43,721,211 |  |  | 43,712,059 |
Weighted average shares outstanding - Diluted | 47,311,642 |  |  | 44,034,663 |  |  | 43,954,164 |  |  | 43,721,211 |  |  | 44,112,321 |
Common shares outstanding (end of period) | 50,970,530 |  |  | 43,801,507 |  |  | 43,785,932 |  |  | 43,722,086 |  |  | 43,712,059 |
Key ratios: |  |  |  |  |  |  |  |  |
Return on average assets | (12.07) | % |  | 1.09 | % |  | 1.25 | % |  | (0.56) | % |  | 0.92 | %
Return on average stockholders' equity | (120.37) |  |  | 10.49 |  |  | 12.44 |  |  | (5.73) |  |  | 9.80 |
Total equity to total assets | 9.84 |  |  | 10.34 |  |  | 10.18 |  |  | 9.79 |  |  | 9.52 |
Total loans to deposit ratio | 87.41 |  |  | 87.52 |  |  | 85.21 |  |  | 87.75 |  |  | 83.92 |
Allowance for credit losses to HFI loans | 1.04 |  |  | 1.09 |  |  | 1.07 |  |  | 1.07 |  |  | 1.10 |
Annualized net charge-offs of average total loans (1) | 0.07 |  |  | 0.02 |  |  | 0.07 |  |  | 0.05 |  |  | 0.03 |
Efficiency ratio | (22.35) |  |  | 59.47 |  |  | 57.16 |  |  | 185.89 |  |  | 67.22 |
Key metrics (Non-GAAP) (2) |  |  |  |  |  |  |  |  |
Net FTE interest margin | 3.52 | % |  | 3.23 | % |  | 3.04 | % |  | 2.97 | % |  | 2.66 | %
Return on average tangible common equity | (155.03) |  |  | 13.24 |  |  | 15.79 |  |  | (7.35) |  |  | 12.65 |
Tangible common equity to tangible assets | 7.60 |  |  | 8.37 |  |  | 8.19 |  |  | 7.83 |  |  | 7.58 |
Tangible book value per common share | $ | 9.76 |  |  | $ | 14.32 |  |  | $ | 13.96 |  |  | $ | 13.68 |  |  | $ | 13.46 |
(1) Average total loans includes loans held for investment and held for sale.
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

3

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results
Income Statement Highlights
Net Interest Income
Net interest income was $58.4 million in the third quarter of 2025, compared to $55.4 million in the second quarter of 2025, driven by the continued expansion of the Company's net FTE interest margin 1, which increased to 3.52% for the third quarter of 2025, compared to 3.23% for the second quarter of 2025. While the margin saw expansion throughout the quarter, most of the increase came later in the quarter as a byproduct of the balance sheet repositioning, all of which transpired following the close of the Company's equity capital raise on August 22 nd, 2025.
Provision for Credit Losses
During the third quarter of 2025, the Company recorded a benefit for credit losses of $(3.6) million. This compares to a provision for credit losses expense of $2.5 million during the second quarter of 2025, and a provision for credit losses expense of $1.0 million during the third quarter of 2024. The decrease in the provision for credit losses during the third quarter of 2025 when compared with the second quarter of 2025 was primarily attributable to the release of approximately $3.1 million in total Allowance against the sold portion of the Indirect Auto portfolio. Additionally, the Provision benefitted from continued improvement in the Company's historical loss metrics and the release of the $0.2 million reserve against the previous Held-To-Maturity investment portfolio. These favorable items were partially offset by net growth in Commercial Loans HFI and a modest increase in specific reserves.
For the third quarter of 2025, Net Charge-Offs were $0.8 million, or an annualized 0.07% of Average Loans Outstanding, compared to Net Charge-Offs of $0.3 million, or an annualized 0.02% of average loans outstanding for the second quarter of 2025, and Net Charge-Offs of $0.4 million, or an annualized 0.03% of Average Loans Outstanding, in the third quarter of 2024.
The Company’s Allowance for Credit Losses as a percentage of period-end loans HFI was 1.04% at September 30, 2025, compared to 1.09% at June 30, 2025 and 1.10% at September 30, 2024.
Non-Interest Income

For the Quarter Ended | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
(Dollars in Thousands) | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Non-interest (Loss) Income |  |  |  |  |  |  |  |  |
Service charges on deposit accounts | $ | 3,474 |  |  | $ | 3,208 |  |  | $ | 3,208 |  |  | $ | 3,276 |  |  | $ | 3,320 |
Wire transfer fees | 71 |  |  | 69 |  |  | 71 |  |  | 124 |  |  | 123 |
Interchange fees | 3,510 |  |  | 3,403 |  |  | 3,241 |  |  | 3,353 |  |  | 3,511 |
Fiduciary activities | 1,363 |  |  | 1,251 |  |  | 1,326 |  |  | 1,313 |  |  | 1,394 |
Loss on sale of investment securities | (299,132) |  |  | — |  |  | (407) |  |  | (39,140) |  |  | — |
Gain on sale of mortgage loans | 1,208 |  |  | 1,219 |  |  | 1,076 |  |  | 1,071 |  |  | 1,622 |
Mortgage servicing income net of impairment | 351 |  |  | 375 |  |  | 385 |  |  | 376 |  |  | 412 |
Increase in cash value of bank owned life insurance | 379 |  |  | 346 |  |  | 335 |  |  | 335 |  |  | 349 |
Other income | (6,558) |  |  | 1,049 |  |  | 7,264 |  |  | 338 |  |  | 780 |
Total non-interest (loss) income | $ | (295,334) |  |  | $ | 10,920 |  |  | $ | 16,499 |  |  | $ | (28,954) |  |  | $ | 11,511 |

Total Non-Interest (Loss) was $295.3 million in the third quarter of 2025, compared to Non-Interest Income of $10.9 million in the second quarter of 2025. The decrease in Non-Interest Income of $306.3 million is due to the loss on the sale investment securities and the pre-tax loss of $7.7 million on the sale of the Company's Indirect Auto portfolio, both of which were related to the balance sheet repositioning efforts. Service Charges, Interchange Fees and Gain on Sale of Mortgage Loans benefited from normal seasonality. Other categories remained relatively unchanged when compared with the prior period.
1 N on-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
4

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results
Non-Interest Expense

For the Quarter Ended | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
(Dollars in Thousands) | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Non-interest Expense |  |  |  |  |  |  |  |  |
Salaries and employee benefits | $ | 22,698 |  |  | $ | 22,731 |  |  | $ | 22,414 |  |  | $ | 25,564 |  |  | $ | 21,829 |
Net occupancy expenses | 3,321 |  |  | 3,127 |  |  | 3,702 |  |  | 3,431 |  |  | 3,207 |
Data processing | 2,933 |  |  | 2,951 |  |  | 2,872 |  |  | 2,841 |  |  | 2,977 |
Professional fees | 808 |  |  | 735 |  |  | 826 |  |  | 736 |  |  | 676 |
Outside services and consultants | 3,844 |  |  | 3,278 |  |  | 3,265 |  |  | 4,470 |  |  | 3,677 |
Loan expense | 1,237 |  |  | 1,231 |  |  | 689 |  |  | 1,285 |  |  | 1,034 |
FDIC insurance expense | 1,345 |  |  | 1,216 |  |  | 1,288 |  |  | 1,193 |  |  | 1,204 |
Core deposit intangible amortization | 706 |  |  | 816 |  |  | 816 |  |  | 843 |  |  | 844 |
Merger related expenses | — |  |  | — |  |  | 305 |  |  | — |  |  | — |
Prepayment penalties | 12,680 |  |  | — |  |  | — |  |  | — |  |  | — |
Other losses | 131 |  |  | 245 |  |  | 228 |  |  | 371 |  |  | 297 |
Other expense | 3,249 |  |  | 3,087 |  |  | 2,901 |  |  | 4,201 |  |  | 3,527 |
Total non-interest expense | $ | 52,952 |  |  | $ | 39,417 |  |  | $ | 39,306 |  |  | $ | 44,935 |  |  | $ | 39,272 |

Total Non-Interest Expense was $53.0 million in the third quarter of 2025, compared with $39.4 million in the second quarter of 2025. The increase in Non-Interest Expense during the third quarter of 2025 when compared with the prior period was primarily driven by a $12.7 million prepayment penalty related to the payoff of $700 million in FHLB advances during the quarter. Additionally, the quarter included approximately $0.9 million of expenses related to the balance sheet initiatives and other efforts, which are not expected to recur in future periods. Apart from these specific items, total Non-Interest Expense was relatively unchanged when compared with the prior quarter.
Income Taxes
Resulting from the reported losses incurred during balance sheet repositioning efforts, Horizon recorded a net tax credit of $64.3 million for the third quarter of 2025, resulting in an effective tax rate of 22.5%.
Balance Sheet Highlights
Total assets decreased by $939.6 million, or 12.3%, to $6.7 billion as of September 30, 2025, from $7.7 billion as of June 30, 2025. The decrease in total assets is primarily due to the Company's balance sheet repositioning efforts, which resulted in a decrease in total investment securities of $1.2 billion and a decrease in loans held for investment of $161.9 million, partially offset by an increase in interest earning deposits. During the quarter, the Company moved its entire held to maturity securities portfolio to available for sale, sold approximately $1.7 billion in book value and reinvested approximately $580 million of the proceeds in the available for sale portfolio, resulting in a net increase in available for sale securities of $651.2 million. Total loans were $4.8 billion at September 30, 2025, a decrease of $163.0 million from June 30, 2025 balances, as organic commercial loan growth was offset by the continued run-off of consumer balances and the sale of approximately $176 million of the Company's indirect auto portfolio on September 26, 2025.
Total deposits decreased by $178.9 million, or 3.1%, to $5.5 billion as of September 30, 2025 when compared to balances as of June 30, 2025. The decrease was driven by the ongoing balance sheet repositioning efforts, which led to a decline of approximately $275 million in high-cost transactional deposit balances, which were partially offset by growth in commercial interest-bearing and seasonal inflows in relationship-based public funds balances. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings decreased by $720.1 million during the quarter to $160.2 million as of September 30, 2025, due to the payoff of the FHLB advances related to the balance sheet repositioning. Subordinated notes balances increase by $98.3 million during the quarter from the closing of the Company's $100.0 million offering, which closed on August 29, 2025. Subsequent to quarter end, on October 1, 2025, the Company redeemed the remaining $56.5 million subordinated note issuance previously outstanding.
5

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results
Capital
The following table presents the Consolidated Regulatory Capital Ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended September 30, 2025:

For the Quarter Ended |  | September 30, |  | June 30, |  | March 31, |  | December 31,
|  | 2025* |  | 2025 |  | 2025 |  | 2024
Consolidated Capital Ratios |  |  |  |  |  |  |  |
Total capital (to risk-weighted assets) |  | 15.03 | % |  | 14.44 | % |  | 14.26 | % |  | 13.91 | %
Tier 1 capital (to risk-weighted assets) |  | 11.29 |  |  | 12.48 |  |  | 12.33 |  |  | 12.00 |
Common equity tier 1 capital (to risk-weighted assets) |  | 10.19 |  |  | 11.48 |  |  | 11.32 |  |  | 11.00 |
Tier 1 capital (to average assets) |  | 8.22 |  |  | 9.59 |  |  | 9.25 |  |  | 8.88 |
*Preliminary estimate - may be subject to change |  |

As of September 30, 2025, the ratio of total stockholders’ equity to total assets is 9.84%. Book value per common share was $12.96, declining $(5.10) during the third quarter of 2025 related to the third quarter balance sheet actions.
Tangible common equity 1 totaled $497.7 million at September 30, 2025, and the ratio of tangible common equity to tangible assets 1 was 7.60% at September 30, 2025, down from 8.37% at June 30, 2025. Tangible book value, which excludes intangible assets from total equity, per common share 1 was $9.76, decreasing $(4.56) during the third quarter of 2025.
Credit Quality
As of September 30, 2025, total non-accrual loans increased by $5.1 million, or 20.8%, from June 30, 2025, to 0.61% of total loans HFI. Total non-performing assets increased $5.3 million, or 17.2%, to $35.7 million, compared to $30.5 million as of June 30, 2025. The ratio of non-performing assets to total assets increased to 0.53% compared to 0.40% as of June 30, 2025.
As of September 30, 2025, net charge-offs increased by $0.5 million to $0.8 million, compared to $0.3 million as of June 30, 2025 and remain just 0.07% annualized of average loans.
1 N on-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
6

Horizon Bancorp, Inc. Reports Third Quarter 2025 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 23, 2025 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, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.
A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. 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 5878909.
About Horizon Bancorp, Inc.
Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.7 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. 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 one-time costs 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.
7

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results
Forward Looking Statements
This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (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: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
8

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results

| Condensed Consolidated Statements of Income
| (Dollars in Thousands Except Per Share Data, Unaudited)
| Three Months Ended |  |
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |  |  |  |
| 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024 |  |  |  |
Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |
Loans receivable | $ | 79,561 |  |  | $ | 78,618 |  |  | $ | 74,457 |  |  | $ | 76,747 |  |  | $ | 75,488 |  |  |  |  |
Investment securities - taxable | 6,631 |  |  | 5,941 |  |  | 6,039 |  |  | 6,814 |  |  | 8,133 |  |  |  |  |
Investment securities - tax-exempt | 4,581 |  |  | 6,088 |  |  | 6,192 |  |  | 6,301 |  |  | 6,310 |  |  |  |  |
Other | 2,063 |  |  | 830 |  |  | 2,487 |  |  | 3,488 |  |  | 957 |  |  |  |  |
Total interest income | 92,836 |  |  | 91,477 |  |  | 89,175 |  |  | 93,350 |  |  | 90,888 |  |  |  |  |
Interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | 25,726 |  |  | 26,052 |  |  | 25,601 |  |  | 27,818 |  |  | 30,787 |  |  |  |  |
Borrowed funds | 5,924 |  |  | 8,171 |  |  | 9,188 |  |  | 10,656 |  |  | 11,131 |  |  |  |  |
Subordinated notes | 1,731 |  |  | 829 |  |  | 829 |  |  | 829 |  |  | 830 |  |  |  |  |
Junior subordinated debentures issued to capital trusts | 1,069 |  |  | 1,070 |  |  | 1,290 |  |  | 920 |  |  | 1,230 |  |  |  |  |
Total interest expense | 34,450 |  |  | 36,122 |  |  | 36,908 |  |  | 40,223 |  |  | 43,978 |  |  |  |  |
Net Interest Income | 58,386 |  |  | 55,355 |  |  | 52,267 |  |  | 53,127 |  |  | 46,910 |  |  |  |  |
Provision for credit losses | (3,572) |  |  | 2,462 |  |  | 1,376 |  |  | 1,171 |  |  | 1,044 |  |  |  |  |
Net Interest Income after Provision for Credit Losses | 61,958 |  |  | 52,893 |  |  | 50,891 |  |  | 51,956 |  |  | 45,866 |  |  |  |  |
Non-interest Income |  |  |  |  |  |  |  |  |  |  |  |  |
Service charges on deposit accounts | 3,474 |  |  | 3,208 |  |  | 3,208 |  |  | 3,276 |  |  | 3,320 |  |  |  |  |
Wire transfer fees | 71 |  |  | 69 |  |  | 71 |  |  | 124 |  |  | 123 |  |  |  |  |
Interchange fees | 3,510 |  |  | 3,403 |  |  | 3,241 |  |  | 3,353 |  |  | 3,511 |  |  |  |  |
Fiduciary activities | 1,363 |  |  | 1,251 |  |  | 1,326 |  |  | 1,313 |  |  | 1,394 |  |  |  |  |
Loss on sale of investment securities | (299,132) |  |  | — |  |  | (407) |  |  | (39,140) |  |  | — |  |  |  |  |
Gain on sale of mortgage loans | 1,208 |  |  | 1,219 |  |  | 1,076 |  |  | 1,071 |  |  | 1,622 |  |  |  |  |
Mortgage servicing income net of impairment | 351 |  |  | 375 |  |  | 385 |  |  | 376 |  |  | 412 |  |  |  |  |
Increase in cash value of bank owned life insurance | 379 |  |  | 346 |  |  | 335 |  |  | 335 |  |  | 349 |  |  |  |  |
Other income | (6,558) |  |  | 1,049 |  |  | 7,264 |  |  | 338 |  |  | 780 |  |  |  |  |
Total non-interest income (loss) | (295,334) |  |  | 10,920 |  |  | 16,499 |  |  | (28,954) |  |  | 11,511 |  |  |  |  |
Non-interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits | 22,698 |  |  | 22,731 |  |  | 22,414 |  |  | 25,564 |  |  | 21,829 |  |  |  |  |
Net occupancy expenses | 3,321 |  |  | 3,127 |  |  | 3,702 |  |  | 3,431 |  |  | 3,207 |  |  |  |  |
Data processing | 2,933 |  |  | 2,951 |  |  | 2,872 |  |  | 2,841 |  |  | 2,977 |  |  |  |  |
Professional fees | 808 |  |  | 735 |  |  | 826 |  |  | 736 |  |  | 676 |  |  |  |  |
Outside services and consultants | 3,844 |  |  | 3,278 |  |  | 3,265 |  |  | 4,470 |  |  | 3,677 |  |  |  |  |
Loan expense | 1,237 |  |  | 1,231 |  |  | 689 |  |  | 1,285 |  |  | 1,034 |  |  |  |  |
FDIC insurance expense | 1,345 |  |  | 1,216 |  |  | 1,288 |  |  | 1,193 |  |  | 1,204 |  |  |  |  |
Core deposit intangible amortization | 706 |  |  | 816 |  |  | 816 |  |  | 843 |  |  | 844 |  |  |  |  |
Merger related expenses | — |  |  | — |  |  | 305 |  |  | — |  |  | — |  |  |  |  |
Prepayment penalties | 12,680 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Other losses | 131 |  |  | 245 |  |  | 228 |  |  | 371 |  |  | 297 |  |  |  |  |
Other expense | 3,249 |  |  | 3,087 |  |  | 2,901 |  |  | 4,201 |  |  | 3,527 |  |  |  |  |
Total non-interest expense | 52,952 |  |  | 39,417 |  |  | 39,306 |  |  | 44,935 |  |  | 39,272 |  |  |  |  |
Income (Loss) Before Income Taxes | (286,328) |  |  | 24,396 |  |  | 28,084 |  |  | (21,933) |  |  | 18,105 |  |  |  |  |
Income tax expense (benefit) | (64,338) |  |  | 3,752 |  |  | 4,141 |  |  | (11,051) |  |  | (75) |  |  |  |  |
Net Income (Loss) | $ | (221,990) |  |  | $ | 20,644 |  |  | $ | 23,943 |  |  | $ | (10,882) |  |  | $ | 18,180 |  |  |  |  |
Basic Earnings (Loss) Per Share | $ | (4.69) |  |  | $ | 0.47 |  |  | $ | 0.55 |  |  | $ | (0.25) |  |  | $ | 0.42 |  |  |  |  |
Diluted Earnings (Loss) Per Share | (4.69) |  |  | 0.47 |  |  | 0.54 |  |  | (0.25) |  |  | 0.41 |  |  |  |  |

9

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results

| Condensed Consolidated Balance Sheet
| (Dollars in Thousands, Unaudited)
| Three Months Ended for the Period
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
| 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Assets |  |  |  |  |  |  |  |  |
Interest earning assets |  |  |  |  |  |  |  |  |
Federal funds sold | $ | — |  |  | $ | 2,024 |  |  | $ | — |  |  | $ | — |  |  | $ | 113,912 |
Interest earning deposits | 381,860 |  |  | 34,175 |  |  | 80,023 |  |  | 201,131 |  |  | 12,107 |
Interest earning time deposits | — |  |  | — |  |  | — |  |  | 735 |  |  | 735 |
Federal Home Loan Bank stock | 45,713 |  |  | 45,412 |  |  | 45,412 |  |  | 53,826 |  |  | 53,826 |
Investment securities, held for trading | 598 |  |  | — |  |  | — |  |  | — |  |  | — |
Investment securities, available for sale | 883,242 |  |  | 231,999 |  |  | 231,431 |  |  | 233,677 |  |  | 541,170 |
Investment securities, held to maturity | — |  |  | 1,819,087 |  |  | 1,843,851 |  |  | 1,867,690 |  |  | 1,888,379 |
Loans held for sale | 1,921 |  |  | 2,994 |  |  | 3,253 |  |  | 67,597 |  |  | 2,069 |
Gross loans held for investment (HFI) | 4,823,669 |  |  | 4,985,582 |  |  | 4,909,815 |  |  | 4,847,040 |  |  | 4,803,996 |
Total Interest earning assets | 6,137,003 |  |  | 7,121,273 |  |  | 7,113,784 |  |  | 7,271,696 |  |  | 7,416,194 |
Non-interest earning assets |  |  |  |  |  |  |  |  |
Allowance for credit losses | (50,178) |  |  | (54,399) |  |  | (52,654) |  |  | (51,980) |  |  | (52,881) |
Cash | 76,395 |  |  | 101,719 |  |  | 89,643 |  |  | 92,300 |  |  | 108,815 |
Cash value of life insurance | 37,762 |  |  | 37,755 |  |  | 37,409 |  |  | 37,450 |  |  | 37,115 |
Other assets | 226,247 |  |  | 148,775 |  |  | 143,675 |  |  | 152,635 |  |  | 119,026 |
Goodwill | 155,211 |  |  | 155,211 |  |  | 155,211 |  |  | 155,211 |  |  | 155,211 |
Other intangible assets | 7,886 |  |  | 8,592 |  |  | 9,407 |  |  | 10,223 |  |  | 11,067 |
Premises and equipment, net | 93,413 |  |  | 93,398 |  |  | 93,499 |  |  | 93,864 |  |  | 93,544 |
Interest receivable | 28,758 |  |  | 39,730 |  |  | 38,663 |  |  | 39,747 |  |  | 39,366 |
Total non-interest earning assets | 575,494 |  |  | 530,781 |  |  | 514,855 |  |  | 529,450 |  |  | 511,263 |
Total assets | $ | 6,712,497 |  |  | $ | 7,652,054 |  |  | $ | 7,628,639 |  |  | $ | 7,801,146 |  |  | $ | 7,927,456 |
Liabilities |  |  |  |  |  |  |  |  |
Savings and money market deposits | $ | 3,198,332 |  |  | $ | 3,385,413 |  |  | $ | 3,393,371 |  |  | $ | 3,446,681 |  |  | $ | 3,420,827 |
Time deposits | 1,199,681 |  |  | 1,193,180 |  |  | 1,245,088 |  |  | 1,089,153 |  |  | 1,220,653 |
Borrowings | 160,206 |  |  | 880,336 |  |  | 812,218 |  |  | 1,142,340 |  |  | 1,142,744 |
Repurchase agreements | 86,966 |  |  | 95,089 |  |  | 87,851 |  |  | 89,912 |  |  | 122,399 |
Subordinated notes | 154,011 |  |  | 55,807 |  |  | 55,772 |  |  | 55,738 |  |  | 55,703 |
Junior subordinated debentures issued to capital trusts | 57,636 |  |  | 57,583 |  |  | 57,531 |  |  | 57,477 |  |  | 57,423 |
Total interest earning liabilities | 4,856,832 |  |  | 5,667,408 |  |  | 5,651,832 |  |  | 5,881,301 |  |  | 6,019,749 |
Non-interest bearing deposits | 1,122,888 |  |  | 1,121,163 |  |  | 1,127,324 |  |  | 1,064,818 |  |  | 1,085,535 |
Interest payable | 12,395 |  |  | 14,007 |  |  | 11,441 |  |  | 11,137 |  |  | 11,400 |
Other liabilities | 59,611 |  |  | 58,621 |  |  | 61,981 |  |  | 80,308 |  |  | 55,951 |
Total liabilities | 6,051,726 |  |  | 6,861,199 |  |  | 6,852,578 |  |  | 7,037,564 |  |  | 7,172,635 |
Stockholders’ Equity |  |  |  |  |  |  |  |  |
Preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |
Common stock | — |  |  | — |  |  | — |  |  | — |  |  | — |
Additional paid-in capital | 458,734 |  |  | 360,758 |  |  | 360,522 |  |  | 363,761 |  |  | 358,453 |
Retained earnings | 236,312 |  |  | 466,498 |  |  | 452,945 |  |  | 436,122 |  |  | 454,050 |
Accumulated other comprehensive (loss) | (34,275) |  |  | (36,403) |  |  | (37,406) |  |  | (36,301) |  |  | (57,681) |
Total stockholders’ equity | 660,771 |  |  | 790,853 |  |  | 776,061 |  |  | 763,582 |  |  | 754,822 |
Total liabilities and stockholders’ equity | $ | 6,712,497 |  |  | $ | 7,652,052 |  |  | $ | 7,628,639 |  |  | $ | 7,801,146 |  |  | $ | 7,927,457 |

10

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results

| Loans and Deposits |  |  |  |
| (Dollars in Thousands, Unaudited) |  |  |  |
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |  | % Change
| 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024 |  | Q3'25 vs Q2'25 |  | Q3'25 vs Q3'24
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | $ | 2,366,956 |  |  | $ | 2,321,951 |  |  | $ | 2,262,910 |  |  | $ | 2,202,858 |  |  | $ | 2,105,459 |  |  | 2 | % |  | 12 | %
Commercial & Industrial | 989,609 |  |  | 976,740 |  |  | 918,541 |  |  | 875,297 |  |  | 808,600 |  |  | 1 | % |  | 22 | %
Total commercial | 3,356,565 |  |  | 3,298,691 |  |  | 3,181,451 |  |  | 3,078,155 |  |  | 2,914,059 |  |  | 2 | % |  | 15 | %
Residential Real estate | 783,850 |  |  | 786,026 |  |  | 801,726 |  |  | 802,909 |  |  | 801,356 |  |  | — | % |  | (2) | %
Mortgage warehouse | — |  |  | — |  |  | — |  |  | — |  |  | 80,437 |  |  | — | % |  | (100) | %
Consumer | 683,254 |  |  | 900,865 |  |  | 926,638 |  |  | 965,976 |  |  | 1,008,144 |  |  | (24) | % |  | (32) | %
Total loans held for investment | 4,823,669 |  |  | 4,985,582 |  |  | 4,909,815 |  |  | 4,847,040 |  |  | 4,803,996 |  |  | (3) | % |  | — | %
Loans held for sale | 1,921 |  |  | 2,994 |  |  | 3,253 |  |  | 67,597 |  |  | 2,069 |  |  | (36) | % |  | (7) | %
Total loans | $ | 4,825,590 |  |  | $ | 4,988,576 |  |  | $ | 4,913,068 |  |  | $ | 4,914,637 |  |  | $ | 4,806,065 |  |  | (3) | % |  | — | %
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits | $ | 1,715,471 |  |  | $ | 1,713,058 |  |  | $ | 1,713,991 |  |  | $ | 1,767,983 |  |  | $ | 1,688,998 |  |  | — | % |  | 2 | %
Savings and money market deposits | 1,482,861 |  |  | 1,672,355 |  |  | 1,679,380 |  |  | 1,678,697 |  |  | 1,731,830 |  |  | (11) | % |  | (14) | %
Time deposits | 1,199,681 |  |  | 1,193,180 |  |  | 1,245,088 |  |  | 1,089,153 |  |  | 1,220,653 |  |  | 1 | % |  | (2) | %
Total Interest bearing deposits | 4,398,013 |  |  | 4,578,593 |  |  | 4,638,459 |  |  | 4,535,833 |  |  | 4,641,481 |  |  | (4) | % |  | (5) | %
Non-interest bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing deposits | 1,122,888 |  |  | 1,121,164 |  |  | 1,127,324 |  |  | 1,064,819 |  |  | 1,085,534 |  |  | — | % |  | 3 | %
Total deposits | $ | 5,520,901 |  |  | $ | 5,699,757 |  |  | $ | 5,765,784 |  |  | $ | 5,600,652 |  |  | $ | 5,727,015 |  |  | (3) | % |  | (4) | %

11

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results

| Average Balance Sheet
| (Dollars in Thousands, Unaudited)
| Three Months Ended
| September 30, 2025 | June 30, 2025 | September 30, 2024
| Average Balance | Interest(4)(6) | Average Rate(4) | Average Balance | Interest(4)(6) | Average Rate(4) | Average Balance | Interest(4)(6) | Average Rate(4)
Assets |  |  |  |  |  |  |  |  |
Interest earning assets |  |  |  |  |  |  |  |  |
Interest earning deposits (incl. Fed Funds Sold) | $ | 185,665 |  | $ | 2,062 |  | 4.41 | % | $ | 72,993 |  | $ | 830 |  | 4.56 | % | $ | 73,524 |  | $ | 957 |  | 5.18 | %
Federal Home Loan Bank stock | 45,549 |  | 862 |  | 7.51 | % | 45,412 |  | 1,075 |  | 9.49 | % | 53,826 |  | 1,607 |  | 11.88 | %
Investment securities - taxable (1) | 792,829 |  | 5,769 |  | 2.89 | % | 959,238 |  | 4,866 |  | 2.03 | % | 1,301,830 |  | 6,526 |  | 1.99 | %
Investment securities - non-taxable (1) | 763,488 |  | 5,799 |  | 3.01 | % | 1,100,731 |  | 7,707 |  | 2.81 | % | 1,125,295 |  | 7,987 |  | 2.82 | %
Total investment securities | 1,556,317 |  | 11,568 |  | 2.95 | % | 2,059,969 |  | 12,573 |  | 2.45 | % | 2,427,125 |  | 14,513 |  | 2.38 | %
Loans receivable (2) (3) | 4,979,211 |  | 79,941 |  | 6.37 | % | 4,947,093 |  | 79,000 |  | 6.41 | % | 4,775,788 |  | 75,828 |  | 6.32 | %
Total interest earning assets | 6,766,742 |  | 94,433 |  | 5.54 | % | 7,125,467 |  | 93,478 |  | 5.26 | % | 7,330,263 |  | 92,905 |  | 5.04 | %
Non-interest earning assets |  |  |  |  |  |  |  |  |
Cash and due from banks | 83,616 |  |  |  | 86,316 |  |  |  | 108,609 |  |  |
Allowance for credit losses | (54,072) |  |  |  | (52,560) |  |  |  | (52,111) |  |  |
Other assets | 501,590 |  |  |  | 472,175 |  |  |  | 471,259 |  |  |
Total average assets | $ | 7,297,876 |  |  |  | $ | 7,631,398 |  |  |  | $ | 7,858,020 |  |  |
Liabilities and Stockholders' Equity |  |  |  |  |  |  |  |  |
Interest bearing liabilities |  |  |  |  |  |  |  |  |
Interest bearing demand deposits | $ | 1,708,446 |  | $ | 6,687 |  | 1.55 | % | $ | 1,727,713 |  | $ | 6,803 |  | 1.58 | % | $ | 3,386,177 |  | $ | 18,185 |  | 2.14 | %
Saving and money market deposits | 1,636,428 |  | 8,204 |  | 1.99 | % | 1,651,866 |  | 8,200 |  | 1.99 | % | — |  | — |  | — | %
Time deposits | 1,198,279 |  | 10,835 |  | 3.59 | % | 1,233,582 |  | 11,049 |  | 3.59 | % | 1,189,148 |  | 12,602 |  | 4.22 | %
Total Deposits | 4,543,153 |  | 25,726 |  | 2.25 | % | 4,613,161 |  | 26,052 |  | 2.27 | % | 4,575,325 |  | 30,787 |  | 2.68 | %
Borrowings | 601,889 |  | 5,535 |  | 3.65 | % | 847,862 |  | 7,777 |  | 3.68 | % | 1,149,952 |  | 10,221 |  | 3.54 | %
Repurchase agreements | 88,721 |  | 389 |  | 1.74 | % | 88,058 |  | 394 |  | 1.79 | % | 123,524 |  | 910 |  | 2.93 | %
Subordinated notes | 91,032 |  | 1,731 |  | 7.54 | % | 55,785 |  | 829 |  | 5.96 | % | 55,681 |  | 830 |  | 5.93 | %
Junior subordinated debentures issued to capital trusts | 57,602 |  | 1,069 |  | 7.36 | % | 57,550 |  | 1,070 |  | 7.46 | % | 57,389 |  | 1,230 |  | 8.53 | %
Total interest bearing liabilities | 5,382,397 |  | 34,450 |  | 2.54 | % | 5,662,416 |  | 36,122 |  | 2.56 | % | 5,961,871 |  | 43,978 |  | 2.93 | %
Non-interest bearing liabilities |  |  |  |  |  |  |  |  |
Demand deposits | 1,120,719 |  |  |  | 1,114,982 |  |  |  | 1,083,214 |  |  |
Accrued interest payable and other liabilities | 63,104 |  |  |  | 64,465 |  |  |  | 74,563 |  |  |
Stockholders' equity | 731,657 |  |  |  | 789,535 |  |  |  | 738,372 |  |  |
Total average liabilities and stockholders' equity | $ | 7,297,876 |  |  |  | $ | 7,631,398 |  |  |  | $ | 7,858,020 |  |  |
Net FTE interest income (non-GAAP) (5) |  | $ | 59,983 |  |  |  | $ | 57,356 |  |  |  | $ | 48,927 |  |
Less FTE adjustments (4) |  | 1,597 |  |  |  | 2,001 |  |  |  | 2,017 |  |
Net Interest Income |  | $ | 58,386 |  |  |  | $ | 55,355 |  |  |  | $ | 46,910 |  |
Net FTE interest margin (Non-GAAP) (4)(5) |  |  | 3.52 | % |  |  | 3.23 | % |  |  | 2.66 | %
(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) N on-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
(6) Includes dividend income on Federal Home Loan Bank stock

12

Horizon Bancorp, Inc. Reports Third Quarter 2025 Results

| Credit Quality |  |  |  |
| (Dollars in Thousands Except Ratios, Unaudited) |  |  |  |
| Quarter Ended |  |  |  |
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |  | % Change
| 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024 |  | Q3'25 vs Q2'25 |  | Q3'25 vs Q3'24
Non-accrual loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 12,303 |  |  | $ | 7,547 |  |  | $ | 8,172 |  |  | $ | 5,658 |  |  | $ | 6,830 |  |  | 63 | % |  | 80 | %
Residential Real estate | 9,256 |  |  | 9,525 |  |  | 12,763 |  |  | 11,215 |  |  | 9,529 |  |  | (3) | % |  | (3) | %
Mortgage warehouse | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | % |  | — | %
Consumer | 7,799 |  |  | 7,222 |  |  | 7,875 |  |  | 8,919 |  |  | 7,208 |  |  | 8 | % |  | 8 | %
Total non-accrual loans | 29,358 |  |  | 24,294 |  |  | 28,810 |  |  | 25,792 |  |  | 23,567 |  |  | 21 | % |  | 25 | %
90 days and greater delinquent - accruing interest | 1,608 |  |  | 2,113 |  |  | 1,582 |  |  | 1,166 |  |  | 819 |  |  | (24) | % |  | 96 | %
Total non-performing loans | $ | 30,966 |  |  | $ | 26,407 |  |  | $ | 30,392 |  |  | $ | 26,958 |  |  | $ | 24,386 |  |  | 17 | % |  | 27 | %
Other real estate owned |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 272 |  |  | $ | 176 |  |  | $ | 360 |  |  | $ | 407 |  |  | $ | 1,158 |  |  | 55 | % |  | (76) | %
Residential Real estate | 769 |  |  | 463 |  |  | 641 |  |  | — |  |  | — |  |  | — | % |  | — | %
Mortgage warehouse | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | % |  | — | %
Consumer | 480 |  |  | 480 |  |  | 34 |  |  | 17 |  |  | 36 |  |  | — | % |  | 1233 | %
Total other real estate owned | 1,521 |  |  | 1,119 |  |  | 1,035 |  |  | 424 |  |  | 1,194 |  |  | 36 | % |  | 27 | %
Other non-performing assets (1) | $ | 3,228 |  |  | $ | 2,937 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 10 | % |  | — | %
Total non-performing assets | $ | 35,715 |  |  | $ | 30,463 |  |  | $ | 31,427 |  |  | $ | 27,382 |  |  | $ | 25,580 |  |  | 17 | % |  | 40 | %
Loan data: |  |  |  |  |  |  |  |  |  |  |  |  |
Accruing 30 to 89 days past due loans | $ | 24,784 |  |  | $ | 31,401 |  |  | $ | 19,034 |  |  | $ | 23,075 |  |  | $ | 18,087 |  |  | (21) | % |  | 37 | %
Substandard loans | 63,236 |  |  | 64,100 |  |  | 66,714 |  |  | 64,535 |  |  | 59,775 |  |  | (1) | % |  | 6 | %
Net charge-offs (recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 294 |  |  | $ | 84 |  |  | $ | (47) |  |  | $ | (32) |  |  | $ | (52) |  |  | 250 | % |  | (665) | %
Residential Real estate | 19 |  |  | 52 |  |  | (47) |  |  | (10) |  |  | (9) |  |  | (64) | % |  | (307) | %
Mortgage warehouse | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | % |  | — | %
Consumer | 518 |  |  | 118 |  |  | 963 |  |  | 668 |  |  | 439 |  |  | 339 | % |  | 18 | %
Total net charge-offs | $ | 831 |  |  | $ | 254 |  |  | $ | 869 |  |  | $ | 626 |  |  | $ | 378 |  |  | 227 | % |  | 120 | %
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 34,390 |  |  | $ | 34,413 |  |  | $ | 32,640 |  |  | $ | 30,953 |  |  | $ | 32,854 |  |  | — | % |  | 5 | %
Residential Real estate | 3,083 |  |  | 3,229 |  |  | 3,167 |  |  | 2,715 |  |  | 2,675 |  |  | (5) | % |  | 15 | %
Mortgage warehouse | — |  |  | — |  |  | — |  |  | — |  |  | 862 |  |  | — | % |  | (100) | %
Consumer | 12,706 |  |  | 16,757 |  |  | 16,847 |  |  | 18,312 |  |  | 16,490 |  |  | (24) | % |  | (23) | %
Total allowance for credit losses | $ | 50,178 |  |  | $ | 54,399 |  |  | $ | 52,654 |  |  | $ | 51,980 |  |  | $ | 52,881 |  |  | (8) | % |  | (5) | %
Credit quality ratios |  |  |  |  |  |  |  |  |  |  |  |  |
Non-accrual loans to HFI loans | 0.61 | % |  | 0.49 | % |  | 0.59 | % |  | 0.53 | % |  | 0.49 | % |  |  |  |
Non-performing assets to total assets | 0.53 | % |  | 0.40 | % |  | 0.41 | % |  | 0.35 | % |  | 0.32 | % |  |  |  |
Annualized net charge-offs of average total loans | 0.07 | % |  | 0.02 | % |  | 0.07 | % |  | 0.05 | % |  | 0.03 | % |  |  |  |
Allowance for credit losses to HFI loans | 1.04 | % |  | 1.09 | % |  | 1.07 | % |  | 1.07 | % |  | 1.10 | % |  |  |  |
(1) Other non-performing assets consist of a single available for sale debt security placed on non-accrual status.

13

Horizon Bancorp, Inc. Reports Third Quarter 2025 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,
|  | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Interest income (GAAP) | (A) | $ | 92,836 |  |  | $ | 91,477 |  |  | $ | 89,175 |  |  | $ | 93,350 |  |  | $ | 90,888 |
Taxable-equivalent adjustment: |  |  |  |  |  |  |  |  |  |
Investment securities - tax exempt (1) |  | 1,218 |  |  | 1,619 |  |  | 1,646 |  |  | 1,675 |  |  | 1,677 |
Loan receivable (2) |  | 379 |  |  | 382 |  |  | 383 |  |  | 395 |  |  | 340 |
Interest income (non-GAAP) | (B) | 94,433 |  |  | 93,478 |  |  | 91,204 |  |  | 95,420 |  |  | 92,905 |
Interest expense (GAAP) | (C) | 34,450 |  |  | 36,122 |  |  | 36,908 |  |  | 40,223 |  |  | 43,978 |
Net interest income (GAAP) | (D) =(A) - (C) | $ | 58,386 |  |  | $ | 55,355 |  |  | $ | 52,267 |  |  | $ | 53,127 |  |  | $ | 46,910 |
Net FTE interest income (non-GAAP) | (E) = (B) - (C) | $ | 59,983 |  |  | $ | 57,356 |  |  | $ | 54,296 |  |  | $ | 55,197 |  |  | $ | 48,927 |
Average interest earning assets | (F) | 6,766,742 |  |  | 7,125,467 |  |  | 7,234,724 |  |  | 7,396,178 |  |  | 7,330,263 |
Net FTE interest margin (non-GAAP) | (G) = (E*) / (F) | 3.52 | % |  | 3.23 | % |  | 3.04 | % |  | 2.97 | % |  | 2.66 | %
(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, |  |  |  |
|  | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024 |  |  |  |
Net income (loss) (GAAP) | (A) | $ | (221,990) |  |  | $ | 20,644 |  |  | $ | 23,941 |  |  | $ | (10,882) |  |  | $ | 18,180 |  |  |  |  |
Average stockholders' equity | (B) | $ | 731,657 |  |  | $ | 789,535 |  |  | $ | 780,269 |  |  | $ | 755,340 |  |  | $ | 738,372 |  |  |  |  |
Average intangible assets | (C) | 163,552 |  |  | 164,320 |  |  | 165,138 |  |  | 165,973 |  |  | 166,819 |  |  |  |  |
Average tangible equity (Non-GAAP) | (D) = (B) - (C) | $ | 568,105 |  |  | $ | 625,215 |  |  | $ | 615,131 |  |  | $ | 589,367 |  |  | $ | 571,553 |  |  |  |  |
Return on average tangible common equity ("ROACE") (non-GAAP) | (E) = (A*) / (D) | (155.03) | % |  | 13.24 | % |  | 15.48 | % |  | (7.35) | % |  | 12.65 | % |  |  |  |
*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,
|  | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Total stockholders' equity (GAAP) | (A) | $ | 660,771 |  |  | $ | 790,852 |  |  | $ | 776,061 |  |  | $ | 763,582 |  |  | $ | 754,822 |
Intangible assets (end of period) | (B) | 163,097 |  |  | 163,803 |  |  | 164,618 |  |  | 165,434 |  |  | 166,278 |
Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 497,674 |  |  | $ | 627,049 |  |  | $ | 611,443 |  |  | $ | 598,148 |  |  | $ | 588,544 |
Total assets (GAAP) | (D) | $ | 6,712,496 |  |  | $ | 7,652,051 |  |  | $ | 7,628,636 |  |  | $ | 7,801,146 |  |  | $ | 7,927,457 |
Intangible assets (end of period) | (B) | 163,097 |  |  | 163,803 |  |  | 164,618 |  |  | 165,434 |  |  | 166,278 |
Total tangible assets (non-GAAP) | (E) = (D) - (B) | $ | 6,549,399 |  |  | $ | 7,488,248 |  |  | $ | 7,464,018 |  |  | $ | 7,635,712 |  |  | $ | 7,761,179 |
Tangible common equity to tangible assets (Non-GAAP) | (G) = (C) / (E) | 7.60 | % |  | 8.37 | % |  | 8.19 | % |  | 7.83 | % |  | 7.58 | %

14

Horizon Bancorp, Inc. Reports Third Quarter 2025 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,
|  | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Total stockholders' equity (GAAP) | (A) | $ | 660,771 |  |  | $ | 790,852 |  |  | $ | 776,061 |  |  | $ | 763,582 |  |  | $ | 754,822 |
Intangible assets (end of period) | (B) | 163,097 |  |  | 163,803 |  |  | 164,618 |  |  | 165,434 |  |  | 166,278 |
Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 497,674 |  |  | $ | 627,049 |  |  | $ | 611,443 |  |  | $ | 598,148 |  |  | $ | 588,544 |
Common shares outstanding | (D) | 50,970,530 |  |  | 43,801,507 |  |  | 43,786,000 |  |  | 43,722,086 |  |  | 43,712,059 |
Tangible book value per common share (non-GAAP) | (E) = (C) / (D) | $ | 9.76 |  |  | $ | 14.32 |  |  | $ | 13.96 |  |  | $ | 13.68 |  |  | $ | 13.46 |

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