Core Viewpoint - Horizon Bancorp, Inc. will host a conference call on January 23, 2025, to discuss its fourth quarter and full year 2024 financial results, with the news release published on January 22, 2025 [1]. Group 1: Conference Call Details - The live conference call will take place at 7:30 a.m. CT (8:30 a.m. ET) on January 23, 2025, with access numbers provided for participants from the U.S., Canada, and international locations [2]. - A telephone replay of the call will be available approximately one hour after the conference call ends, accessible until January 31, 2025, with specific dialing instructions for different regions [3]. Group 2: Company Overview - Horizon Bancorp, Inc. is a commercial bank holding company with $7.9 billion in assets, serving customers in the Midwest through digital tools and physical branches in Indiana and Michigan [4]. - The company offers a range of retail banking services, including secured consumer lending, personal banking, and wealth management solutions, with commercial lending making up over half of its total loans [4].

Earnings Performance and Predictions - Horizon Bancorp has a history of beating earnings estimates, with an average surprise of 7.02% over the last two quarters [5] - For the most recent quarter, the company reported earnings of $0.41 per share, surpassing the expected $0.37 per share, resulting in a 10.81% surprise [6] - In the previous quarter, Horizon Bancorp reported $0.32 per share, beating the consensus estimate of $0.31 per share, a surprise of 3.23% [6] Earnings ESP and Zacks Rank - Horizon Bancorp currently has a positive Earnings ESP of +4.24%, indicating analysts' bullish outlook on the company's earnings prospects [7] - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a high likelihood of another earnings beat [7] - Stocks with a positive Earnings ESP and a Zacks Rank 3 or better have a 70% chance of producing a positive earnings surprise [2] Analyst Estimates and Predictive Power - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [3] - A positive Earnings ESP increases the odds of an earnings beat, while a negative value reduces predictive power but does not necessarily indicate a miss [7] - Utilizing the Earnings ESP Filter can help identify stocks with high potential for earnings surprises before quarterly reports [4]

Net Income and Earnings - Net income increased by $2.0 million to $18.2 million, or $0.42 per share, for the three months ended September 30, 2024, compared to $16.2 million, or $0.37 per share, for the same period in 2023[173] - Net income declined by $6.9 million to $46.3 million, or $1.06 per share, for the nine months ended September 30, 2024, compared to $53.2 million, or $1.22 per share, for the same period in 2023[174] - Net income (GAAP) for September 30, 2024, was $18.180 million, up from $14.140 million in June 2024 and $13.991 million in March 2024[221] Net Interest Income and Margin - Net interest income increased by $4.8 million, or 11.5%, for the three months ended September 30, 2024, driven by a 25 basis point increase in the net FTE interest margin to 2.66%[174] - The net FTE interest margin increased by 25 basis points to 2.66% for the three months ended September 30, 2024, due to a favorable mix shift in average interest-earning assets and funding mix[175] - Net interest income increased by $2.0 million to $135.5 million for the nine months ended September 30, 2024, compared to the same period in 2023[179] - Net FTE interest margin increased by 1 basis point to 2.60% for the nine months ended September 30, 2024[179] - Net FTE interest margin (Non-GAAP) was 2.66% for the three months ended September 30, 2024[177] - Net FTE interest margin (non-GAAP) for September 30, 2024, was 2.66%, compared to 2.64% in June 2024 and 2.50% in March 2024[219] - Net interest income (GAAP) for September 30, 2024, was $46.910 million, up from $45.279 million in June 2024 and $43.288 million in March 2024[219] Interest Rates and Sensitivity - A 100 basis points rise in interest rates would decrease net interest income by $7.9 million (3.5%), while a 100 basis points fall would increase net interest income by $2.8 million (1.3%)[226] - The company's net interest income is projected to decrease by $17.7 million (7.9%) with a 200 basis points rise in interest rates[226] - A 100 basis points rise in interest rates is expected to reduce net interest income by $7.9 million (3.5%)[226] - A 100 basis points fall in interest rates is projected to increase net interest income by $2.8 million (1.3%)[226] - A 200 basis points fall in interest rates is expected to decrease net interest income by $2.7 million (1.2%)[226] - The company uses earnings simulation models to assess net interest income sensitivity to interest rate changes over 12- and 24-month periods[225] - Deposit beta assumptions in the simulation model range from 12% to 80% based on underlying products[225] - The company's interest-bearing liabilities are projected to reprice faster than interest-earning assets for the next 100 basis points of declining interest rates[225] Non-Interest Income and Expense - Non-interest expense growth and a decline in non-interest income contributed to the decrease in net income for the nine months ended September 30, 2024[174] - The increase in net interest income for the three months ended September 30, 2024 was partially offset by an increase in non-interest expense compared to the year-ago period[173] - Total non-interest income declined by $0.3 million for the three months ended September 30, 2024, compared to the same period in 2023[186] - Total non-interest income for the nine months ended September 30, 2024, was $31.9 million, down from $32.4 million in the same period in 2023[184] - Non-interest expense increased by $3.1 million for the three months ended September 30, 2024, and $6.9 million for the nine months ended September 30, 2024, driven by higher salaries, outside services, and other expenses[191] - Salaries and employee benefits expense increased by $1.8 million for the three months ended September 30, 2024, and $3.7 million for the nine months ended September 30, 2024, due to hiring efforts and legacy benefits program expenses[192][193] Loans and Deposits - Total loans HFI increased by $383.5 million, or 8.8%, to $4.8 billion as of September 30, 2024, led by organic commercial loan growth[205] - Total deposit balances increased by $62.1 million, or 1.1%, to $5.7 billion as of September 30, 2024, with a focus on core commercial and consumer deposits[206] - Total borrowings decreased by $87.9 million, or 6.5%, to $1.3 billion as of September 30, 2024, due to repayment of Federal Home Loan Bank advances[207] - Loans receivable averaged $4,775.8 million with an average rate of 6.32% for the three months ended September 30, 2024[177] - Interest-bearing deposits averaged $3,386.2 million with an average rate of 2.14% for the three months ended September 30, 2024[177] Credit Quality and Allowance for Credit Losses - The ACL balance increased to $52.9 million, or 1.10% of period-end loans HFI, up from $50.0 million at December 31, 2023[210] - Total non-accrual loans increased by $3.9 million, or 19.6%, to 0.49% of total loans HFI as of September 30, 2024[211] - Net charge-offs for the three months ended September 30, 2024, were $0.4 million, or 3 basis points annualized of average loans[212] - Total non-performing assets increased by $3.8 million, or 17.4%, to 0.32% of total assets as of September 30, 2024[211] - Provision for credit losses on loans increased by $1.0 million for the three months ended September 30, 2024, and $4.2 million for the nine months ended September 30, 2024, driven by loan growth and changes in economic forecasts[196][197] Investment Securities and Other Assets - Investment securities available for sale decreased by $6.1 million to $541.2 million as of September 30, 2024, compared to December 31, 2023[209] - Securities held to maturity decreased by $57.3 million to $1.9 billion as of September 30, 2024[209] - Federal Home Loan Bank stock averaged $53.8 million with an average rate of 11.88% for the three months ended September 30, 2024[177] - The Bank had approximately $1.52 billion in unused credit lines with various money center banks as of September 30, 2024[215] Equity and Capital Ratios - Stockholders' equity totaled $754.8 million as of September 30, 2024, compared to $718.8 million at December 31, 2023[216] - Tangible common equity totaled $588.5 million at September 30, 2024, with a ratio of tangible common equity to tangible assets of 7.58%[216] - The dividend payout ratio was 45.3% for the first nine months of 2024, compared to 39.3% for the same period in 2023[216] - Total tangible common equity (non-GAAP) for September 30, 2024, was $588.544 million, up from $559.544 million in June 2024 and $553.285 million in March 2024[222] - Tangible common equity to tangible assets (non-GAAP) for September 30, 2024, was 7.58%, compared to 7.22% in June 2024 and 7.20% in March 2024[222] - Tangible book value per common share (non-GAAP) for September 30, 2024, was $13.46, up from $12.80 in June 2024 and $12.65 in March 2024[223] - Return on average tangible common equity (ROACE) (non-GAAP) for September 30, 2024, was 12.65%, compared to 10.18% in June 2024 and 10.11% in March 2024[221] Risks and Accounting Estimates - The company's critical accounting estimates include the allowance for credit losses, goodwill and intangible assets, mortgage servicing rights, hedge accounting, and valuation measurements[172] - The company identified risks such as changes in interest rates, inflation, and the impact of cryptocurrencies on deposit disintermediation and payment system income[169] - The company highlighted potential risks from cyber terrorism, data security breaches, and the rising costs of effective cybersecurity[170] - The company noted the risks of expansion through mergers and acquisitions, including unexpected credit quality problems and difficulty integrating acquired operations[170] Internal Controls and Reporting - The company's disclosure controls and procedures were effective as of September 30, 2024, ensuring timely and accurate reporting[228] - Horizon's disclosure controls and procedures were evaluated as effective as of September 30, 2024[228] - No material changes in internal control over financial reporting were identified during the fiscal quarter ended September 30, 2024[229] Interest Income and Expense Details - Total interest earning assets averaged $7,330.3 million with an average rate of 5.04% for the three months ended September 30, 2024[177] - Total interest bearing liabilities averaged $5,961.9 million with an average rate of 2.93% for the three months ended September 30, 2024[177] - Net FTE interest income (non-GAAP) was $48.9 million for the three months ended September 30, 2024[177] - Net interest income was $46.9 million for the three months ended September 30, 2024[177] - Total interest income increased by $10.8 million for the three months ended September 30, 2024, compared to the same period in 2023, driven by higher loan interest income[183] - Net interest income rose by $4.8 million for the three months ended September 30, 2024, compared to the same period in 2023, despite a $3.2 million decrease due to rate changes[183] - Loans receivable interest income increased by $12.5 million for the three months ended September 30, 2024, compared to the same period in 2023, with a significant contribution from rate changes[183] - Interest-bearing deposits expense increased by $5.5 million for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to rate changes[183] - Federal Home Loan Bank stock interest income increased by $989,000 for the three months ended September 30, 2024, compared to the same period in 2023[183] - Interest income (GAAP) for September 30, 2024, was $90.888 million, showing an increase from $86.981 million in June 2024 and $85.264 million in March 2024[219] Service Charges and Fees - Service charges on deposit accounts increased to $9.7 million for the nine months ended September 30, 2024, compared to $9.1 million in the same period in 2023[184] - Service charges on deposit accounts increased by $0.2 million for the three months ended September 30, 2024, and $0.5 million for the nine months ended September 30, 2024, compared to the same periods in 2023[187] - Interchange fees increased by $0.3 million for the three months ended September 30, 2024, and $0.8 million for the nine months ended September 30, 2024, driven by growth in qualified debit card volume[188] - Mortgage servicing income decreased by $0.2 million for the three months ended September 30, 2024, and $0.7 million for the nine months ended September 30, 2024, due to higher amortization expense of mortgage servicing rights[189] - Cash value of bank-owned life insurance decreased by $0.7 million for the three months ended September 30, 2024, and $2.1 million for the nine months ended September 30, 2024, due to policy surrenders in Q4 2023[190] Total Assets and Liabilities - Total average assets for the nine months ended September 30, 2024, were $7.82 billion, slightly lower than the $7.87 billion in the same period in 2023[181] - Net FTE interest margin (Non-GAAP) remained stable at 2.60% for the nine months ended September 30, 2024, compared to 2.59% in the same period in 2023[181]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Horizon Bancorp (HBNC) currently holding a Momentum Style Score of A [2][3] Group 2: Performance Metrics of Horizon Bancorp - HBNC shares have increased by 1.47% over the past week, while the Zacks Banks - Northeast industry has decreased by 1.49% during the same period [5] - Over the last month, HBNC's price change is 6.56%, outperforming the industry's 0.87% [5] - In the last quarter, HBNC shares rose by 8.38%, and over the past year, they have increased by 70.53%, compared to the S&P 500's 7.91% and 40.48% respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for HBNC is 147,733 shares, indicating a bullish sign if the stock is rising with above-average volume [7] - In the past two months, one earnings estimate for HBNC has increased, raising the consensus estimate from $1.38 to $1.41 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [9] Group 4: Investment Recommendation - Given the positive performance metrics and earnings outlook, HBNC is rated as a 2 (Buy) stock with a Momentum Score of A, making it a potential pick for near-term investment [9]

| --- | --- | |-----------------------------------------------------------------------------------------------|-------| | | | | | | | | | | | | | | | | | | | Investor | | | | | | Presentation | | | | | | H o r i z o n B a n c o r p , I n c . ( N A S D A Q : H B N C ) | | | T h i r d Q u a r t e r E n d e d S e p t e m b e r 3 0 , 2 0 2 4 O c t o b e r 2 4 , 2 0 2 4 | | Beyond ordinary banking Important Information Forward-Looking Statements This press release may contain forward–looking statements regarding ...

Financial Data and Key Metrics Changes - Horizon Bancorp reported positive net income growth for Q3 2024, driven by expanded net interest income and fee income, alongside excellent credit quality [5][6] - Average loan growth for the quarter was solid at 10% annualized, reflecting a strategic focus on core commercial portfolio growth while reducing lower-yielding auto loans [6][9] - The net interest margin (NIM) increased by two basis points to 2.66%, marking the fourth consecutive quarter of improvement [15][16] Business Line Data and Key Metrics Changes - The loan portfolio mix as of September 30 consisted of 60% commercial, 17% residential, and 21% consumer loans, with commercial loans increasing by $9.5 million, or 1.3% annualized [9][10] - Consumer loan balances decreased by $43 million, while the mortgage portfolio grew by $3 million, representing 2% annualized growth [11] - Nonperforming loans increased to $24.4 million, or 51 basis points of total loans, primarily due to larger home equity loans and a single credit in the commercial portfolio [12] Market Data and Key Metrics Changes - The deposit portfolio showed solid growth, with stability in core noninterest-bearing balances, benefiting from commercial and consumer deposit gathering efforts [7][14] - The company anticipates that its deposit portfolio will remain stable, focusing on core retail and commercial customers while managing higher-priced non-relationship balances [22] Company Strategy and Development Direction - Horizon Bancorp is focused on simplifying its business model and investing in core community banking, with strategic investments in treasury management, wealth, and mortgage sectors [35][24] - The company plans to create further liquidity and improve financial performance as rates decline, with a lean operating culture aimed at delivering long-term shareholder value [25][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial outlook and positive momentum, expecting core commercial growth to continue while managing the runoff of the indirect auto portfolio [21][24] - The company anticipates net interest margin expansion of 15 to 20 basis points in Q4, driven by securities repositioning and further rate reductions [22] Other Important Information - Horizon Bancorp announced strategic actions including the sale of approximately $325 million in securities and the intent to sell the mortgage warehouse business, aimed at improving structural profitability [19][20] - The allowance for credit losses increased to $52.9 million, reflecting adjustments for economic forecasts and specific reserves [13] Q&A Session Summary Question: Margin outlook for 2025 - Management discussed the favorable factors affecting margin outlook, including earning asset mix changes and anticipated rate cuts [28] Question: Fair values of the HTM portfolio - Management did not have the specific number available but committed to follow up [30] Question: Yields on total maturities in Q4 - The total maturities in the loan portfolio for Q4 are expected to be around 6% [34] Question: Internal progress and potential areas for upside - Management highlighted strategic investments in community banking and anticipated mid to high single-digit loan growth in 2025 [35] Question: Thoughts on restructuring the HTM portfolio - Management indicated no immediate need to raise capital or restructure the HTM portfolio, focusing instead on organic growth [38] Question: Expense outlook for next year - Consensus estimates for expenses are in the range of $155 to $160 million [40] Question: Share repurchases and capital deployment - Management is open to evaluating share repurchases as profitability improves and capital positions strengthen [42] Question: Credit reserve levels - Management expressed comfort with the current reserve levels, indicating no significant changes unless credit trends shift [49] Question: Commercial pipeline and equipment finance - The commercial pipeline remains steady, with equipment finance meeting expectations [51]

Financial Performance - Horizon Bancorp reported $58 42 million in revenue for Q3 2024, a YoY increase of 8 4% [1] - EPS for the quarter was $0 41, compared to $0 37 a year ago, representing a YoY growth [1] - Revenue surpassed the Zacks Consensus Estimate of $58 23 million by 0 32% [1] - EPS exceeded the consensus estimate of $0 37 by 10 81% [1] Key Metrics Analysis - Efficiency Ratio: 67 2%, higher than the three-analyst average estimate of 64 7% [2] - Net Interest Margin: 2 7%, in line with the three-analyst average estimate [2] - Net Charge-offs: 0%, below the two-analyst average estimate of 0 1% [2] - Average Balance of Total Interest Earning Assets: $7 33 billion, slightly above the $7 31 billion estimate [2] - Gain on Sale of Mortgage Loans: $1 62 million, exceeding the $1 10 million estimate [2] - Total Non-Interest Income: $11 51 million, higher than the $10 85 million estimate [2] - Net Interest Income: $46 91 million, slightly below the $47 31 million estimate [2] - Wire Transfer Fees: $0 12 million, above the $0 11 million estimate [2] - Mortgage Servicing Income Net of Impairment: $0 41 million, below the $0 48 million estimate [2] - Service Charges on Deposit Accounts: $3 32 million, above the $3 22 million estimate [2] - Other Income: $0 78 million, exceeding the $0 65 million estimate [2] - Fiduciary Activities: $1 39 million, slightly below the $1 41 million estimate [2] Stock Performance - Horizon Bancorp shares returned -2 6% over the past month, underperforming the Zacks S&P 500 composite's +2 7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near term [3]

Company Performance - Horizon Bancorp reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and up from $0.37 per share a year ago, representing an earnings surprise of 10.81% [1] - The company posted revenues of $58.42 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.32%, and an increase from $53.92 million year-over-year [1] - Horizon Bancorp has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times over the last four quarters [1] Market Outlook - Horizon Bancorp shares have increased by approximately 5.8% since the beginning of the year, while the S&P 500 has gained 22.7% [2] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $58.73 million, and for the current fiscal year, it is $1.38 on revenues of $226.3 million [4] Industry Context - The Banks - Northeast industry, to which Horizon Bancorp belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook for the sector [5] - Another company in the same industry, First Mid Bancshares, is expected to report quarterly earnings of $0.84 per share, reflecting a year-over-year increase of 9.1%, with revenues projected at $79.5 million, up 8.2% from the previous year [5]

Net Income and Earnings - Net income for Q3 2024 was $18.2 million, or $0.41 per diluted share, compared to $14.1 million in Q2 2024 and $16.2 million in Q3 2023[2] - Net income for Q3 2024 was $18.180 million, compared to $14.140 million in Q2 2024 and $16.205 million in Q3 2023[32] - Basic earnings per share for Q3 2024 were $0.42, up from $0.32 in Q2 2024 and $0.37 in Q3 2023[32] - Net income (GAAP) increased to $18.180 million in Q3 2024 from $14.140 million in Q2 2024[43] Net Interest Income and Margin - Net interest income increased to $46.9 million in Q3 2024, up from $45.3 million in Q2 2024, with a net FTE interest margin of 2.66%[3] - Net interest income for Q3 2024 was $46.910 million, up from $45.279 million in Q2 2024 and $42.090 million in Q3 2023[32] - Net FTE interest income (non-GAAP) rose to $48,927 in Q3 2024, compared to $47,302 in Q2 2024 and $44,202 in Q3 2023[38] - Net interest margin (Non-GAAP) improved to 2.66% in Q3 2024, up from 2.64% in Q2 2024 and 2.41% in Q3 2023[38] - Net FTE interest income (non-GAAP) increased to $48.927 million in Q3 2024 from $47.302 million in Q2 2024[42] - Net FTE interest margin (non-GAAP) improved to 2.66% in Q3 2024 from 2.64% in Q2 2024[42] Loans and Credit Quality - Total loans held for investment remained stable at $4.8 billion, with commercial portfolio growth offset by planned run-off of lower-yielding indirect auto loans[3] - Annualized net charge-offs were 0.03% of average loans in Q3 2024, with non-performing assets to total assets at 0.32%[4] - Provision for credit losses in Q3 2024 was $1.0 million, down from $2.4 million in Q2 2024 and $0.3 million in Q3 2023[11] - 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[12] - Non-accrual loans increased by $5.3 million (29.0%) to 0.49% of total loans HFI, and non-performing assets rose by $5.1 million (25.0%) to $25.6 million as of September 30, 2024[22] - Net charge-offs decreased to $0.4 million in Q3 2024 from $0.6 million in Q2 2024, representing 0.03% annualized of average loans[23] - Provision for loan losses in Q3 2024 was $1.044 million, down from $2.369 million in Q2 2024 and $263,000 in Q3 2023[32] - Total loans receivable as of September 2024 were $75.488 million, compared to $71.880 million in June 2024 and $63.003 million in September 2023[32] - Gross loans held for investment (HFI) reached $4,803,996 thousand in Q3 2024, a 10% increase compared to Q3 2023[34] - Total commercial loans grew to $2,914,059 thousand in Q3 2024, up 13% from Q3 2023[36] - Residential real estate loans increased to $801,356 thousand in Q3 2024, a 19% rise compared to Q3 2023[36] - Loans receivable grew to $4,775,788 with an average rate of 6.32% in Q3 2024, up from $4,662,124 at 6.23% in Q2 2024 and $4,280,700 at 5.89% in Q3 2023[38] - Total non-accrual loans increased by 29% to $23.567 million in Q3 2024 compared to Q2 2024[40] - Total non-performing loans rose by 26% to $24.386 million in Q3 2024 compared to Q2 2024[40] - Net charge-offs decreased by 36% to $375 thousand in Q3 2024 compared to Q2 2024[40] - Total allowance for credit losses increased by 1% to $52.881 million in Q3 2024 compared to Q2 2024[40] Deposits and Liabilities - Deposit growth of 1.7% in Q3 2024, reaching $5.7 billion, driven by stable non-interest bearing deposits and growth in core relationship portfolios[3] - Total deposit balances grew by $96.9 million (1.7%) to $5.7 billion as of September 30, 2024, while total borrowings decreased by $86.4 million (7.0%) to $1.1 billion[19] - Total deposits as of September 2024 were $30.787 million, up from $28.447 million in June 2024 and $24.704 million in September 2023[32] - Total deposits reached $5,727,015 thousand in Q3 2024, a 2% increase from Q2 2024 and flat compared to Q3 2023[36] - Savings and money market deposits grew to $3,420,827 thousand in Q3 2024, up 3% from Q3 2023[36] - Time deposits increased to $1,220,653 thousand in Q3 2024, a 4% rise from Q2 2024 but a 2% decline from Q3 2023[36] - Interest bearing deposits increased to $3,386,177 with an average rate of 2.14% in Q3 2024, up from $3,334,490 at 2.03% in Q2 2024 and $3,267,594 at 1.54% in Q3 2023[38] - Time deposits grew to $1,189,148 with an average rate of 4.22% in Q3 2024, up from $1,134,590 at 4.12% in Q2 2024 and $1,271,104 at 3.76% in Q3 2023[38] - Borrowings decreased to $1,149,952 with an average rate of 3.54% in Q3 2024, compared to $1,184,172 at 3.49% in Q2 2024 and $1,180,452 at 3.50% in Q3 2023[38] - Total liabilities stood at $7,172,635 thousand in Q3 2024, down 1.3% from Q2 2024 and 1.3% from Q3 2023[34] Non-Interest Income and Expense - Non-interest income increased to $11.5 million in Q3 2024, up from $10.5 million in Q2 2024, due to higher realized gains on mortgage loan sales[13] - Total non-interest income for Q3 2024 was $11.5 million, compared to $10.5 million in Q2 2024, driven by increases in service charges, interchange fees, and gains on mortgage loans[14] - Non-interest income for Q3 2024 was $11.511 million, compared to $10.485 million in Q2 2024 and $11.830 million in Q3 2023[32] - Total non-interest expense increased to $39.3 million in Q3 2024 from $37.5 million in Q2 2024, primarily due to a $1.2 million rise in salaries and employee benefits and a $0.6 million increase in outside services and consultants[16] - Non-interest expense for Q3 2024 was $39.272 million, up from $37.522 million in Q2 2024 and $36.168 million in Q3 2023[32] Capital and Equity - Total capital ratio improved to 13.52% in Q3 2024, up from 13.41% in Q2 2024, with tangible common equity to tangible assets ratio rising to 7.58% from 7.22%[21][22] - Total stockholders' equity increased to $754,822 thousand in Q3 2024, up 3.9% from Q2 2024 and 8.9% from Q3 2023[34] - Total stockholders' equity (GAAP) increased to $754,822 thousand as of September 30, 2024, up from $693,369 thousand in September 2023[44][46] - Total tangible common equity (non-GAAP) rose to $588,544 thousand in September 2024, compared to $523,628 thousand in September 2023[44][46] - Tangible common equity to tangible assets ratio (non-GAAP) improved to 7.58% in September 2024 from 6.72% in September 2023[44] - Tangible book value per common share (non-GAAP) increased to $13.46 in September 2024, up from $12.00 in September 2023[46] - Return on average tangible common equity (ROACE) (non-GAAP) increased to 12.65% in Q3 2024 from 10.18% in Q2 2024[43] Assets and Investments - Total assets increased by $14.9 million (0.2%) to $7.93 billion as of September 30, 2024, driven by a $79.5 million (230.6%) increase in federal funds sold[18] - Total interest earning assets increased to $7,416,194 thousand in Q3 2024, up 0.9% from Q2 2024 and 1.5% from Q3 2023[34] - Total interest earning assets increased to $7,330,263 with an average rate of 5.04% in Q3 2024, compared to $7,212,788 at 4.96% in Q2 2024 and $7,286,611 at 4.59% in Q3 2023[38] - Total investment securities stood at $2,427,125 with an average rate of 2.38% in Q3 2024, compared to $2,441,370 at 2.39% in Q2 2024 and $2,871,079 at 2.35% in Q3 2023[38] - Federal Home Loan Bank stock interest income increased to $1,607 at an average rate of 11.88% in Q3 2024, compared to $1,521 at 11.36% in Q2 2024 and $618 at 7.10% in Q3 2023[38] - Total assets (GAAP) stood at $7,927,457 thousand as of September 30, 2024, slightly down from $7,959,434 thousand in September 2023[44] - Intangible assets decreased to $166,278 thousand in September 2024 from $169,741 thousand in September 2023[44][46] - Total tangible assets (non-GAAP) were $7,761,179 thousand in September 2024, compared to $7,789,693 thousand in September 2023[44] Strategic Actions and Outlook - Horizon announced the repositioning of $325 million of available-for-sale securities and the intended sale of its mortgage warehouse business in Q4 2024[6] - Horizon expects sustainable improvement in profitability from Q4 2024 strategic actions, positively impacting financial performance in 2025[5] Tax and Other Financial Metrics - Horizon's effective tax rate for Q3 2024 was -0.4%, down from 10.9% in Q2 2024, due to increased net realizable tax credits[17] - Total interest income for Q3 2024 was $90.888 million, compared to $86.981 million in Q2 2024 and $80.125 million in Q3 2023[32] - Total interest expense for Q3 2024 was $43.978 million, compared to $41.702 million in Q2 2024 and $38.035 million in Q3 2023[32] - Subordinated notes interest income remained stable at $830 with an average rate of 5.93% in Q3 2024, compared to $829 at 5.99% in Q2 2024 and $880 at 5.92% in Q3 2023[38] - Common shares outstanding remained stable at 43,712,059 in September 2024, similar to 43,648,501 in September 2023[46]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 26, 2024 HORIZON BANCORP, INC. (Exact name of registrant as specified in its charter) Indiana 000-10792 35-1562417 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 515 Franklin Street Michigan City, IN 46360 (Address of principal ...