Horizon Bancorp : HBNC 2022 4th Quarter Earnings & Investor Presentation

A NASDAQ Traded Company - Symbol HBNC

I N V E S T O R P R E S E N TAT I O N | J A N U A R Y 2 5 , 2 0 2 3

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Important Information

Forward-Looking Statements

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 presentation 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: 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; continuing increases in inflation; 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; continuing risks and uncertainties relating to the COVID-19 pandemic and government responses thereto; 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; material changes outside the U.S. or in overseas relations, including changes in U.S. trade relations related to imposition of tariffs, Brexit, and the phase out of the London Interbank Offered Rate ("LIBOR"); 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 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 Internet 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.

Non-GAAP Measures

Certain non-GAAP financial measures are presented herein. Horizon believes they are useful to investors and provide a greater understanding of Horizon's business without giving effect to non-recurring costs and non-core items. For each non-GAAP financial measure, we have presented comparable GAAP measures and reconciliations of the non-GAAP measures to those GAAP measures in the Appendix to this presentation. Please see slides 43-57.

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Corporate Overview

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Met or Exceeded Most 2022 Goals

	Initial
	Goal
	4Q21
Annual Commercial Loan Growth	10%
Reduction in Mortgage Originations	15-18%
Annual Consumer Loan Growth	5-9%
Annual Expenses to Average Assets	<2.00%
ROAA	>1.20%
ROAE	>12.5%

Update	Actual
Goal	2022
1Q22	YTD

10-14%11.4%

15-18%34.7%

10-14%30.6%

<2.00% 1.90%

>1.30% 1.24%

>12.5%13.66%

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Why Horizon?

A High-Performing Operator in Growth Markets

Disciplined operating culture

1.24% ROAA, 18.33% ROATE

1.90% operating expenses/avg. assets YTD

2 bps annual charge-offs to average loans, non-performing loans to total loans at 0.52% Optimized mortgage/consumer lending staffing models in Q4. Full realization in 2023

Compelling value supported by commitment to dividend

130% P/TBV and 7.1x P/E (TTM) with a 4.2% dividend yield

30-year record of quarterly cash dividends to shareholders. 2022 annual dividend of 64¢/share (29.4% payout ratio)

Well-establishedlong-term growth goals

15% average asset growth 2017-2022

15% loan growth YTD (excluding PPP and sold commercial participation loans)

Stable core deposit base funded primarily by a granular portfolio of consumer and business clients

Very attractive Midwest markets

30 minutes from downtown Chicago benefiting from Illinois exodus

Attractive Midwest Markets with promising infrastructure investment, growing manufacturing, healthcare, and educational industries

Diversified mix of businesses delivers very strong operational performance

>50% of loan portfolio is commercial with growth of $64 million or 11% annualized in Q4. Portfolio well balanced across multiple segments and markets

Consumer loan growth of $49 million or 21% annualized with strong growth in consumer lending

1. Footnote Index included in Appendix (see slides 43-57 for non-GAAP reconciliation)

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