Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — IPO Roadshow (August 2025)
38 slides from Horizon Bancorp's IPO roadshow presentation, Aug 20, 2025
Slide 1: Beyond ordinary banking: Follow-On Offering Investor Presentation
Beyond ordinary banking Follow - On Offering Investor Presentation Horizon Bancorp, Inc. (NASDAQ: HBNC) August 2025
Slide 2: Notice to and Undertaking by Recipients
Notice to and Undertaking by Recipients In this presentation, “we,” “our,” “us,” “Horizon,” “HBNC” or the “Company” refers to Horizon Bancorp, Inc . , and our consolidated subsidiaries, including Horizon Bank (the “Bank”), unless the context indicates that we refer only to the parent company, Horizo
Slide 3: Industry Information and Non-GAAP Notices
Industry Information This presentation includes statistical and other industry and market data that we obtained from government reports and other third - party sources . Our internal data, estimates and forecasts are based on information obtained from government reports, trade and business organizat
Slide 4: Common Stock Offering Summary
4 Common Stock Offering Summary Horizon Bancorp, Inc. Issuer NASDAQ / HBNC Exchange / Ticker $90 million (100% Primary) Base Offering Size 15% of base deal (100% Primary) Overallotment Option General corporate purposes, which may include a potential balance sheet repositioning Use of Proceeds 90 day
Slide 5: Key Executive Management
5 Key Executive Management Thomas M. Prame President, Chief Executive Officer & Director John R. Stewart, CFA Chief Financial Officer CEO of HBNC since June 20 23 Prior to his current role, Mr. Prame held executive roles at First Midwest Bank (Illinois) from 2012 to 2022 and Citizens Bank (Rhode Isl
Slide 6: Franchise Overview
6 Franchise Overview Overview of Horizon Bancorp, Inc. Retail Banking Nasdaq: HBNC Headquarters: Michigan City, IN Bank Founded: 1873 Banking Offices: 70 Employees: 859 Dividend Yield: 3.9% (as of 8/13/25) $7.7B Total Assets $5.7B Total Deposits 11.5% CET1 Ratio 0.02% Q2 NCOs (Ann.) 1.08% Q2 ROAA $5
Slide 7: History and Growth Profile
$1.1B $1.2B $1.3B $1.3B $1.4B $1.4B $1.5B $1.8B $1.8B $2.1B $2.7B $3.1B $4.0B $4.2B $5.2B $5.9B $7.4B $7.9B $7.9B $7.8B $7.7B 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 2025 7 History and Growth Profile Total Assets ($B) Acquired Salin Banc
Slide 8: Horizon's Franchise DNA
8 Horizon’s Franchise DNA Highly Attractive Midwestern Markets Driving Growth Consistent, High Quality Loan Growth x 70+ branches in high - growth, affordable markets x Anchored by multinational brands and college towns x Infrastructure tailwinds fueling economic expansion Stable, Relationship - Bas
Slide 9: Highly Attractive Midwestern Markets Driving Growth
9 Northern Indiana Central Indiana Michigan Highly Attractive Midwestern Markets Driving Growth Source: S&P Capital IQ Pro. Deposit data as of 6/30/2024. Note: Metrics represent weighted averages based on HBNC MSA deposits. $2.4B Deposits 26 Branches 7.2% ’25 – ’30 HHI Growth 0.6% ’25 – ’30 Pop. Gro
Slide 10: Stable, Relationship-Based Deposit Engine
Source: S&P Capital IQ Pro. Data as of MRQ unless stated otherwise . (1) Defined as total deposits excluding time deposits over $250K. (2) Peers defined as major exchange traded banks with assets $5 billion - $10 billion. Excludes CASH, TBBK, TFIN, WABC and merger ta rgets (HMST + HONE). Stable, Rel
Slide 11: Consistent, High Quality Loan Growth
Data as of MRQ unless stated otherwise. *Total Gross Loans Held for Investment (HFI), excludes HFS . (1) Excludes zero balance lines. Q2 ‘25 HIGHLIGHTS & DEVELOPMENTS • Commercial Real Estate & C&I loans continue to deliver strong growth in conjunction with intentional run - off in the lower - yield
Slide 12: Diversified Commercial Portfolio
* The sum of Construction & Land Development Loans, Multifamily Property Loans, Non - Owner - Occupied Non - Farm Non - Residential Property Loans and loans to finance CRE not secured by Real Estate divided by Tier 1 Capital plus Allowance, as of March 31, 2025 ** UBPR Peer Group 3, as of March 31,
Slide 13: Prime Consumer & Residential Lending
Q2 ‘ 25 HIGHLIGHTS & DEVELOPMENTS • Direct Consumer and Mortgage portfolios relatively flat • Indirect Auto declined $34MM from planned run - off • Home Lending portfolios composed of higher quality borrowers, significant capacity to pay and low LTV Data represents total loans HFI as of MRQ unless s
Slide 14: Excellent Historical Asset Quality
Excellent Historical Asset Quality 14 Net Charge - Offs / Average Loans Nonperforming Assets / Assets Allowance For Credit Losses / Loans Source: S&P Capital IQ Pro. Data as of or for the six months ended June 30, 2025, unless stated otherwise. (1) Peers defined as major exchange traded banks with a
Slide 15: Shareholder Focused Mindset & Lean-In Operating Culture
15 Shareholder Focused Mindset & Lean - In Operating Culture 2 nd AFS Portfolio Repositioning & Tax Strategy Execution (Q4 ‘24) • Sold ~$330MM AFS securities, redeployed into high - return commercial loans and paid down higher - cost term deposits • Released tax valuation allowance, unlocking $5MM i
Slide 16: Potential Repositioning Will Unlock Another Level of Performance
… And Potential Repositioning of the Balance Sheet Will Unlock Another Level of Performance 16 Data as of MRQ, unless stated otherwise. See Appendix for detailed assumptions underlying the pro forma calculations. Pro for ma information for illustrative purposes. (1) Represents non - GAAP financial m
Slide 17: De-Risking Opportunity for Legacy Securities Portfolio
17 De - Risking Opportunity for Legacy Securities Portfolio Investment Securities Yield (FTE) (3) Available - for - sale Portfolio Mix (1) Held - to - maturity Portfolio Mix (1) 9.2 Yrs Weighted Average Life 2.80% FTE Book Yield $48MM (2) Pre - Tax Loss 8.5 Yrs Weighted Average Life 2.69% FTE Book Y
Slide 18: Potential Strategic Actions to Unlock & Reposition the Balance Sheet
Potential Strategic Actions to Unlock & Reposition the Balance Sheet Raise ~$104MM of Common Equity Raise ~ $100MM of Subordinated Debt (1) Sell ~$1.4B in Securities (2) After - tax Loss of ~$238MM Sell ~$200MM in Indirect Auto Loans Pay down $1.1B of Wholesale Funding – ~$715MM in putable advances
Slide 19: Repositioning Expected to Drive Top Quartile Profitability Amongst Peers
19 Source: S&P Capital IQ Pro. Note: See Appendix for detailed assumptions underlying the pro forma calculations. Pro forma information for illustrative pur pos es. (1) For illustrative purposes, assumes existing subordinated debt was already floating at a 9.8% pre - tax rate. (2) Represents non - G
Slide 20: Enhanced Profitability Drives Capital Generation
20 Enhanced Profitability Drives the Ability to Generate Capital Near the Top of the Peer Group TCE / TA (1) CET1 Total RBC Source: S&P Capital IQ Pro. Note: See Appendix for detailed assumptions underlying the pro forma calculations. Pro forma information for illustrative pur pos es. (1) Represents
Slide 21: Improved Risk Profile to Support Future Growth
21 Expect Improved Risk Profile to Support Future Growth, Earnings Durability & Value Creation Existing Portfolio Pro Forma (1.5%) 0.9% 0.0% (3.3%) (7.7%) (2.8%) (0.2%) 0.0% 0.4% 0.7% - 200 - 100 Base +100 +200 Reducing Interest Rate Exposure - 200 - 100 Base +100 +200 x Enhances balance sheet flexi
Slide 22: The View From the Top: A New Horizon
The View From the Top: A New Horizon Source: S&P Capital IQ Pro. Note: See Appendix for detailed assumptions underlying the pro forma calculations. Pro forma information for illustrative pur pos es. Data as of or for the MRQ. (1) Peers defined as major exchange traded banks with assets $5 billion -
Slide 23: Why Horizon?
23 Experienced, Results - Oriented Management Team x Strong management team with decades of experience Highly Attractive Midwestern Markets Driving Growth x Strategically positioned in vibrant, business - rich communities Consistent, High Quality Loan Growth x Well - diversified Commercial portfolio
Slide 24: HORIZON:
HORIZON: BANK — ea \\
Slide 25: Detailed Assumptions on Potential Balance Sheet Repositioning
25 Detailed Assumptions on Potential Balance Sheet Repositioning Note: a tax rate of 23% has been applied to pre - tax figures to derive after - tax amounts. (1) Actual amounts and terms may vary depending on market conditions and execution. (2) Assumes 4.75% gross underwriting spread and $400 thous
Slide 26: Illustrative Pro Forma Consolidated Balance Sheet
26 Illustrative Pro Forma Consolidated Balance Sheet See prior page for detailed assumptions. (1) Common equity raise assumes a base offering of $90 million and full exercise of the 15% overallotment option at a HBNC share pri ce of $16.25 (HBNC closing price as of 8/13/2025). (2) Securities sale ba
Slide 27: Historical Double Leverage and Interest Coverage
27 Historical Double Leverage and Interest Coverage (1) Long - Term Debt includes subordinated debt and trust preferred securities. (2) Excludes nonrecurring revenue and expense. (3) Presented as of 6/30/2025; Pro forma includes impact of balance sheet repositioning detailed on page 25. (4) Assumes
Slide 28: Historical Financial Performance
28 Historical Financial Performance Year Ended December 31, Quarter Ended, ($MM except per share data) 2020 2021 2022 2023 2024 9/30/24 12/31/24 3/31/25 6/30/25 Balance Sheet: Total Assets $5,887 $7,412 $7,873 $7,940 $7,801 $7,927 $7,801 $7,629 $7,652 Loans & Leases Held for Investment $3,867 $3,659
Slide 29: Strong and Traditional Commercial Lending
STRONG AND TRADITIONAL COMMERCIAL LENDING • Multi - family represents 5.9% of loans o No major metros outside Indiana and Michigan, other than Columbus, OH o Zero rent regulated/stabilized originated or in portfolio o $1.9MM average loan size • Non - owner - occupied office represents 3.8% of total
Slide 30: Earnings Per Share Non-GAAP Reconciliation
30 Earnings Per Share Non - GAAP Reconciliation Illustrated for Balance Sheet Reposition + Capital There can be no assurance that we will complete the repositioning as planned, that the underlying assumptions will be realize d o r that actual results will not differ materially from these illustratio
Slide 31: Return on Average Assets Non-GAAP Reconciliation
31 Return on Average Assets Non - GAAP Reconciliation Illustrated for Balance Sheet Reposition + Capital There can be no assurance that we will complete the repositioning as planned, that the underlying assumptions will be realize d o r that actual results will not differ materially from these illus
Slide 32: Return on Average Tangible Common Equity Non-GAAP Reconciliation
32 Return on Average Tangible Common Equity Non - GAAP Reconciliation Illustrated for Balance Sheet Reposition + Capital There can be no assurance that we will complete the repositioning as planned, that the underlying assumptions will be realize d o r that actual results will not differ materially
Slide 33: Net Interest Income and Net Interest Margin Non-GAAP Reconciliation
33 Net Interest Income and Net Interest Margin Non - GAAP Reconciliation Illustrated for Balance Sheet Reposition + Capital There can be no assurance that we will complete the repositioning as planned, that the underlying assumptions will be realize d o r that actual results will not differ material
Slide 34: Three Months Ended June 30, 2024 September 30, 2024 December 31, 2024 March 31,
Three Months Ended June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 $ 86,981 $ 90,888 $ 93,350 $ 89,175 $ 91,477 (A) Interest income (GAAP) Taxable - equivalent adjustment: $ 1,695 $ 1,677 $ 1,675 $ 1,646 $ 1,618 Investment securities - tax exempt (1) $ 328 $ 340 $ 395
Slide 35: Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets
35 Non - GAAP Reconciliation Three Months Ended June 30, September 30, December 31, March 31, June 30, 2024 2024 2024 2025 2025 $ 726,665 $ 754,822 $ 763,582 $ 776,061 $ 790,852 (A) Total stockholders' equity (GAAP) 167,121 166,278 165,434 164,618 163,80 3 (B) Intangible assets (end of period) $ 559
Slide 36: Non-GAAP Reconciliation of Tangible Book Value Per Share
Three Months Ended June 30, September 30, December 31, March 31, June 30, 2024 2024 2024 2025 2025 $ 726,665 $ 754,822 $ 763,582 $ 776,061 $ 790,852 (A) Total stockholders' equity (GAAP) 167,121 166,278 165,434 164,618 163,80 3 (B) Intangible assets (end of period) $ 559,544 $ 588,544 $ 598,148 $ 61
Slide 37: Non-GAAP Reconciliation of Return on Average Tangible Common Equity
37 Non - GAAP Reconciliation Non - GAAP Reconciliation of Return on Average Tangible Common Equity (Dollars in Thousands. Unaudited) Three Months Ended June 30, September 30, December 31, March 31, June 30, 2024 2024 2024 2025 2025 $ 14,140 $ 18,180 $ (10,882) $ 23,941 $ 20,644 (A) Net income (loss)
Slide 38: Thank you
Thank you John R. Stewart, CFA ® Executive Vice President & Chief Financial Officer 515 Franklin Street, Michigan City, IN 46360 219 - 814 - 5833 Investor.HorizonBank.com