UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to Commission file number 0-10792 HORIZON BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or or ...

Horizon Bancorp, Inc. (NASDAQ:HBNC) Q2 2023 Earnings Call Transcript July 27, 2023 8:30 AM ET Company Participants Thomas Prame - Chief Executive Officer and President Mark Secor - Executive Vice President and Chief Financial Officer Lynn Kerber - Executive Vice President and Chief Commercial Banking Officer Conference Call Participants Terry McEvoy - Stephens Damon DelMonte - KBW David Long - Raymond James Brian Martin - Janney Montgomery Nathan Race - Piper Sandler Operator Good morning, everyone, and wel ...

Solid loan growth with low credit risk profile Disciplined operating culture 6.2% dividend yield 25 % of Commercial Portfolio Commercial, $2,506M, 59% Residential Mortgage, $675M, 16% Consumer, $1,003M, 23% Mortgage Warehouse, $82M, 2% Held For Sale, $7M, 0% Gross Loans at 6/30/23 $4.3B | --- | --- | --- | --- | --- | |---------------------------------------------------|-----------|---------------|-------------------|-------------------------| | MSA | HBNC Rank | HBNC Branches | HBNC Market Share | Deposits ...

Financial Performance - Net income for the first quarter 2023 was $18.2 million, down from $21.2 million in the fourth quarter 2022 and $23.6 million in the first quarter 2022[165]. - Diluted earnings per share (EPS) were $0.42, compared to $0.48 for the fourth quarter 2022 and $0.54 for the first quarter 2022[165]. - Total non-interest income for the first quarter was $9.62 million, down from $10.67 million in the fourth quarter 2022 and $14.15 million in the first quarter 2022[167]. - Consolidated net income for the three-month period ended March 31, 2023, was $18.2 million, or $0.42 diluted earnings per share, down from $23.6 million, or $0.54 diluted earnings per share for the same period in 2022[192]. - The decrease in net income was attributed to a $1.6 million decline in net interest income, a $1.6 million increase in credit loss expense, and a $4.5 million decrease in non-interest income[192]. - Net interest income for the three months ended March 31, 2023, was $45.2 million, a decrease of $1.6 million from $46.8 million in the same period of 2022[194]. - The dividend payout ratio increased to 38.1% in Q1 2023 from 27.8% in Q1 2022, with dividends declared at $0.16 per share[216]. - Pre-tax, pre-provision net income for Q1 2023 was $20.333 million, compared to $23.745 million in Q1 2022[224]. - Adjusted diluted earnings per share for Q1 2023 was $0.43, consistent with Q4 2022[222]. Deposits and Loans - Total deposits at the end of the first quarter 2023 were $5.70 billion, a decrease of $155.8 million from the previous quarter, primarily due to a $122.2 million reduction in municipal and public depositors[165]. - Consumer and commercial deposits totaled $4.28 billion, declining by $33.6 million during the quarter[165]. - The loan-to-deposit ratio was 74.5% at the end of the quarter, with total loans increasing at an annualized rate of 8.3% year-to-date and 2.1% quarter-over-quarter[165]. - As of March 31, 2023, Horizon's total assets increased to $7.9 billion, up approximately $25.5 million from December 31, 2022, primarily driven by a growth in net loans of $89.9 million[184]. - Net loans reached $4.2 billion, with commercial loans increasing by $38.0 million, consumer loans by $58.3 million, and residential mortgage loans by $9.2 million since December 31, 2022[186]. - Total deposits decreased by $155.8 million to $5.7 billion, mainly due to a $122.2 million reduction in municipal and public depositors' balances[188]. - Total borrowings rose to $1.3 billion as of March 31, 2023, from $1.1 billion as of December 31, 2022, primarily due to the decrease in total deposits[190]. Expenses and Efficiency - Non-interest expense for the first quarter was $34.5 million, a decline of 3.3% from the linked quarter and 2.1% from the prior year period[165]. - Total non-interest expense decreased by $746,000 to $34.524 million in Q1 2023 compared to Q1 2022, primarily due to a $1.0 million reduction in salaries and employee benefits[209]. - Salaries and employee benefits expense decreased by 5.2% from $19.735 million in Q1 2022 to $18.712 million in Q1 2023[209]. - The annualized non-interest expense as a percentage of average assets was 1.79% for Q1 2023, down from 1.95% in Q1 2022[210]. - Adjusted efficiency ratio improved to 62.37% for the three months ended March 31, 2023, compared to 60.06% in the previous quarter[231]. Capital and Equity - Stockholders' equity increased to $702.6 million at March 31, 2023, compared to $677.4 million at December 31, 2022, driven by a decrease in accumulated other comprehensive loss and net income generation[191]. - Total stockholders' equity increased to $702,559,000 as of March 31, 2023, up from $677,375,000 at December 31, 2022, representing a growth of 3.5%[229]. - Tangible stockholders' equity rose to $531,012,000, compared to $504,925,000 at December 31, 2022, reflecting an increase of 5.2%[229]. - Book value per common share increased to $16.11, up from $15.55 in the previous quarter, marking a rise of 3.6%[229]. - Average common equity rose to $693,472,000, up from $660,188,000 in the previous quarter, representing a growth of 5.0%[235]. Credit Quality - The allowance for credit losses to total loans was 1.17%, compared to 1.21% at December 31, 2022[167]. - Credit loss expense totaled $242,000 for the three months ended March 31, 2023, compared to a recovery of $1.4 million for the same period in 2022[202]. - The Allowance for Credit Losses (ACL) balance was $49.5 million, or 1.17% of total loans, as of March 31, 2023, down from 1.21% at December 31, 2022[203]. - Non-performing loans decreased by $2.0 million to $19.8 million as of March 31, 2023, compared to $21.8 million at December 31, 2022[204]. Regulatory and Legal Matters - Horizon's disclosure controls and procedures were found to be ineffective as of March 31, 2023, due to material weaknesses in internal control over financial reporting[241]. - Horizon identified material weaknesses in internal control over financial reporting, particularly regarding loans, investments, and cash flow disclosures[242]. - Remediation efforts are ongoing, with an estimated completion date prior to the end of fiscal 2023[243]. - A putative class action lawsuit was filed against Horizon on April 20, 2023, alleging materially false statements and failure to disclose adverse facts[246]. - Management believes the lawsuit is without merit and intends to defend against it vigorously[247]. - Recent high-profile bank failures have negatively impacted customer confidence in regional banks, potentially affecting Horizon's liquidity and results of operations[249].

Horizon Bancorp, Inc. (NASDAQ:HBNC) Q1 2023 Earnings Conference Call April 27, 2023 8:30 AM ET Company Participants Craig Dwight - Chairman and CEO Thomas Prame - President Mark Secor - Executive Vice President and CFO Lynn Kerber - Executive Vice President and Chief Commercial Banking Officer Noe Najera - Executive Vice President and Senior Retail and Mortgage Lending Officer Conference Call Participants Terry McEvoy - Stephens Nathan Race - Piper Sandler Damon DelMonte - KBW David Long - Raymond James Bri ...

Financial Performance and Assets - Horizon Bank completed the purchase and assumption of certain assets and liabilities of 14 former TCF National Bank branches, receiving net cash of $618.2 million, with customer deposit balances recorded at $846.4 million[23] - Horizon Bank had total assets of $7.9 billion and total deposits of $5.9 billion as of December 31, 2022[24] - Revenues from loans accounted for 61.2% of total consolidated revenue, while revenues from investment securities accounted for 22.0% in 2022[27] - Horizon Bank completed the purchase of 14 former TCF National Bank branches, receiving net cash of $618.2 million, with customer deposit balances recorded at $846.4 million and goodwill of $4.0 million generated in the transaction[23] - As of December 31, 2022, Horizon Bank had total assets of $7.9 billion and total deposits of $5.9 billion, operating 71 full-service offices[24] - In 2022, revenues from loans accounted for 61.2% of total consolidated revenue, while revenues from investment securities accounted for 22.0%[27] Market Presence and Competition - Horizon Bank operates 71 full-service offices and employs 852 full-time and 71 part-time employees as of December 31, 2022[24][29] - The Bank faces competition from commercial banks, savings and loan associations, credit unions, FinTech startups, and other non-bank financial service providers[30] - Horizon Bank's primary market includes northern and central Indiana and southern and central Michigan, competing with Chicago money center banks and other financial institutions[30] - Horizon holds a 55.34% market share in La Porte County, Indiana, making it the largest of eight bank and thrift institutions in the area[32] - In Carroll County, Indiana, Horizon has a 24.41% market share, ranking as the largest of six institutions[32] - Horizon is the second largest of seven bank and thrift institutions in Midland County, Michigan[33] - Horizon faces competition from 20 financial institutions in Allen County, Indiana, with a market share of 0.82%, and 4 institutions in Arenac County, Michigan, with a market share of 31.40%[32] - Horizon was the largest of the eight bank and thrift institutions in La Porte County, Indiana, with a market share of 55.34%[32] - Horizon was the second largest of the seven bank and thrift institutions in Midland County, Michigan[33] Regulatory Compliance and Capital Requirements - Horizon is subject to extensive regulation by the Federal Reserve Board and must file annual reports and undergo examinations[34] - The Bank is regulated by the Indiana Department of Financial Institutions and the FDIC, which provides deposit insurance[36] - Horizon is required to act as a source of financial strength to its subsidiary bank under the Dodd-Frank Act[42] - The Bank's deposits are insured up to $250,000 per account title by the FDIC's Deposit Insurance Fund[49] - The FDIC's reserve ratio for the Deposit Insurance Fund reached 1.36% by September 2018, exceeding the statutory minimum of 1.35%[54] - Horizon must comply with risk-based capital guidelines, including maintaining sufficient capital for risk-weighted asset and leverage ratio tests[58] - The FDIC may terminate deposit insurance if an institution engages in unsafe practices or violates regulations[56] - Horizon and the Bank met all capital adequacy requirements under Basel III as of December 31, 2022[66] - Basel III increased the minimum common equity Tier 1 capital ratio to 4.5%, Tier 1 capital ratio to 6.0%, and total capital ratio to 8.0%[60] - The capital conservation buffer requirement effectively raises the minimum required common equity Tier 1 capital ratio to 7.0%, Tier 1 capital ratio to 8.5%, and total capital ratio to 10.5%[62] - Horizon's consolidated total capital ratio was 14.37%, Tier 1 capital ratio was 13.51%, and common equity Tier 1 capital ratio was 11.28% as of December 31, 2022[70] - The Bank's total capital ratio was 13.59%, Tier 1 capital ratio was 12.72%, and common equity Tier 1 capital ratio was 12.72% as of December 31, 2022[70] - The Community Bank Leverage Ratio was established at 9% for qualifying community banking organizations[64] - Horizon's consolidated Tier 1 capital to average assets ratio was 10.03%, exceeding the minimum requirement of 4.0%[70] - The Bank was categorized as "well capitalized" with a total risk-based capital ratio exceeding 10%, Tier 1 risk-based capital ratio exceeding 8%, and common equity Tier 1 risk-based capital ratio exceeding 6.5%[77] - The capital simplification rules effective for 2020 increased the individual regulatory limit for mortgage servicing assets and certain deferred tax assets[65] - Horizon is subject to the USA PATRIOT Act and the Bank Secrecy Act, requiring anti-money laundering and financial transparency measures[79][80] - The Dodd-Frank Act has increased Horizon's operating costs, and the company expects these higher costs to continue in the foreseeable future[96] - Horizon adopted the CECL accounting standard effective January 1, 2020, impacting the measurement of expected credit losses on financial assets[114] - The CFPB has examination and enforcement authority over depository institutions with $10 billion or more in assets, while smaller institutions like Horizon are subject to CFPB rules but supervised by federal banking regulators[91] - The CFPB has implemented regulations impacting the mortgage industry, including ability-to-repay rules and mortgage servicing requirements[94] - Horizon is required to maintain stock in the FHLB of Indianapolis equal to at least 1% of its aggregate unpaid residential mortgage loans[102] - The Regulatory Relief Act of 2018 introduced the Community Bank Leverage Ratio, simplifying regulatory capital calculations for community banks[97] - Horizon is a well-capitalized institution, allowing it to accept brokered deposits without restrictions under FDIC regulations[104] - The CFPB amended Regulation C, adding new information collection and reporting requirements for financial institutions effective January 1, 2018[95] - Horizon continues to monitor privacy and data security laws, including the EU's GDPR and California's Consumer Privacy Act, for their impact on business operations[110] - The company is subject to regulation and supervision by the Federal Reserve Board as a bank holding company and financial holding company[34] - Horizon's common stock is listed on the NASDAQ Global Select Market under the trading symbol "HBNC"[38] - Horizon has elected to be treated as a financial holding company, allowing it to engage in a broader range of financial activities[40] - Horizon must maintain a minimum common equity Tier 1 capital ratio of 4.5%, Tier 1 capital ratio of 6.0%, and total capital ratio of 8.0% under Basel III rules[60] - Horizon's deposits are insured by the FDIC up to the statutory limit of $250,000 per account title[49] - The FDIC's reserve ratio for the Deposit Insurance Fund (DIF) is set at no less than 1.35% under the Dodd-Frank Act[50] - Horizon's initial base assessment rates for deposit insurance premiums ranged from 5 to 9 basis points for small Risk Category I banks[51] - Horizon's regulatory capital requirements include a leverage ratio of 4.0% and a capital conservation buffer of 2.5% of risk-weighted assets[62] - Horizon met all capital adequacy requirements under Basel III as of December 31, 2022[66] - Horizon's regulatory capital framework includes Tier I and Tier II capital, with specific requirements for risk-weighted assets and leverage ratios[58] - Consolidated total capital ratio is 14.37% with an amount of $776,390 million, exceeding the required 8.00% for capital adequacy purposes[70] - Bank's Tier 1 capital ratio is 12.72% with an amount of $679,784 million, exceeding the required 6.00% for capital adequacy purposes[70] - Bank's common equity Tier 1 capital ratio is 12.72% with an amount of $679,784 million, exceeding the required 4.50% for capital adequacy purposes[70] - Bank is categorized as "well capitalized" with a total risk-based capital ratio exceeding 10%, Tier 1 risk-based capital ratio exceeding 8%, and common equity Tier 1 risk-based capital ratio exceeding 6.5%[77] - Bank's leverage ratio exceeds 5%, and it is not subject to any regulatory order or agreement to meet specific capital levels[77] - Bank must maintain a Tier 1 leverage ratio above 7.5% to avoid DFI pre-approval for dividend payments[71] - Federal Reserve expects bank holding companies to consult before declaring dividends not supported by earnings or involving a material increase in the dividend rate[73] - Dodd-Frank Act imposes new capital requirements on bank and thrift holding companies, affecting Horizon's operating environment and increasing compliance costs[90][96] - Regulatory Relief Act of 2019 introduced a "Community Bank Leverage Ratio" to simplify regulatory capital calculations for community banks[97] - Horizon Bank has not elected to opt into the Community Bank Leverage Ratio framework[98] Subsidiaries and Business Operations - The Bank's subsidiaries include Horizon Investments, Horizon Properties, Horizon Insurance Services, Horizon Grantor Trust, and Wolverine Commercial Holdings[24] - Horizon's business is not seasonal, and no material part of its business depends on a single or small group of customers[27] - Horizon expanded its geographic reach through organic growth and mergers, including acquisitions in southern and central Michigan and northeastern and central Indiana[22] - The Bank recorded a core deposit intangible of $1.6 million and goodwill of $4.0 million from the TCF National Bank branch acquisition[23] - Horizon's business is not seasonal, and no material part of its business is dependent on a single or small group of customers[27] - The company has expanded its geographic reach and experienced financial growth through organic expansion and mergers and acquisitions over the last 20 years[22] Investments and Dividends - Horizon's investment in FHLB of Indianapolis stock was $26.7 million at December 31, 2022, with dividends totaling $1.0 million at an annualized rate of 4.0%[102] - The Bank's investment in stock of the FHLB of Indianapolis was $26.7 million at December 31, 2022[102] - Dividends paid by the FHLB of Indianapolis to the Bank totaled approximately $1.0 million for the year ended December 31, 2022, with an annualized dividend rate of 4.0%[102] - The FHLB limits certain types of real estate-related collateral to 30% of a member's capital[100] - The Bank is required to purchase and maintain stock in the FHLB of Indianapolis equal to at least 1% of its aggregate unpaid residential mortgage loans[102]

Horizon Bancorp, Inc. (NASDAQ:HBNC) Q4 2022 Earnings Conference Call January 26, 2022 8:30 AM ET Company Participants Craig Dwight - Chairman and Chief Executive Officer Thomas Prame - President Mark Secor - Executive Vice President and Chief Executive Financial Officer Lynn Kerber - Executive Vice President and Chief Commercial Banking Officer Noe Najera - Executive Vice President and Senior Retail and Mortgage Lending Officer Conference Call Participants Terry McEvoy - Stephens David Long - Raymond James ...

BANCORP, INC. E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Important Information This presentation 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 pre ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to Commission file number 0-10792 HORIZON BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

BANCORP, INC. A NASDAQ Traded Company - Symbol HBNC INVESTOR PRESENTATION | OCTOBER 26, 2022 E X C E P T I O N A L S E R V I C E • S E N S I B L E A D V I C E ® Important Information Forward-Looking Statements This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, "Horizon"). For these statements, Horizon claims the protection of the safe harbor for forward–l ...