Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Q3 2025 Earnings Presentation
22 slides from Horizon Bancorp's earnings presentation, Oct 23, 2025
Slide 1: Investor Presentation
Investor Presentation Horizon Bancorp, Inc. (NASDAQ: HBNC) Third Quarter Ended September 30, 2025 October 23, 2025 Beyond ordinary banking
Slide 2: Important Information
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 cla
Slide 3: Third Quarter 2025
Third Quarter 2025 HIGHLIGHTS & POSITIVE MOMENTUM ($000S EXCEPT PER SHARE DATA) 3Q25 2Q25 • Exceeded financial and timing expectations of strategic INCOME STATEMENT Balance Sheet transformation ◦ Well positioned to achieved top quartile performance in Net Interest Income $58,386 $55,355 Q4 and full
Slide 4: Balance Sheet Transformation Update
Balance Sheet Transformation Update Completed as of September 30th 4Q Activities • Closed previously announced public offering of 7.1 • Redeemed $56.5 million of previously outstanding million shares of Common Stock raising $98.6 million Subordinated Notes on October 1, which carried an effective co
Slide 5: Strategically Focused Loan Growth
Strategically Focused Loan Growth HIGHLIGHTS & DEVELOPMENTS • Commercial Real Estate & C&I loans continue to deliver strong 14% growth, which was offset during the quarter by the intentional run-off and ultimate sale of the lower-yielding Indirect Auto portfolio Consumer Total Loans* 16% • Total loa
Slide 6: Diversified Commercial Portfolio
Diversified Commercial Portfolio 9% HIGHLIGHTS & DEVELOPMENTS 9% 27% Central Indiana • Commercial loan balances grew 7.0% LQA West Michigan ◦ Quarter end balances up $58 million 8% Geography Southwest Michigan $3.4B Northern Indiana • Well balanced geographies, product mix and industry MRQ end North
Slide 7: Prime Consumer Portfolio
Prime Consumer Portfolio HIGHLIGHTS & DEVELOPMENTS 6% 2% • Indirect Auto declined $210 million, reflecting the intentional run-off and eventual sale of $176 million in the quarter Mortgage • Direct Consumer and Mortgage portfolios relatively flat Mix Home Equity • Remaining Consumer portfolio is pri
Slide 8: Strong Asset Quality Metrics
Strong Asset Quality Metrics Substandard Loans* (period end) Non-Performing Loans (period end) $30.4 $31.0 $64.5 $66.7 $64.1 $63.2 $27.0 $26.4 $59.8 $24.4 0.62% 0.64% 0.56% 0.53% 0.51% $millions $millions 1.33% 1.36% 1.29% 1.31% 1.24% 3Q24 4Q24 1Q25 2Q25 3Q25 3Q24 4Q24 1Q25 2Q25 3Q25 Substandard Loa
Slide 9: Relationship Based Core Deposits
Relationship Based Core Deposits HIGHLIGHTS & DEVELOPMENTS Deposits • Consumer and Commercial Deposits ◦ Positive momentum in core relationships and balances $5,727 $5,601 $5,766 $5,700 $5,521 ◦ Treasury management team investments making a positive $millions impact 87.8% 87.5% 87.4% 83.9% 85.2% • P
Slide 10: Net Interest Margin Expansion
Net Interest Margin Expansion HIGHLIGHTS & DEVELOPMENTS • 8 consecutive quarters of FTE NIM* expansion driven by strategic efforts to reposition the Balance Sheet in accretive, higher yielding earning assets and lower cost core funding through several specific initiatives: ◦ Three separate investmen
Slide 11: Securities Portfolio Transformation
Securities Portfolio Transformation Improved Earning Assets Mix 87% 73% 27% 13% 2Q25 3Q25 Inv Sec All Other Earning Assets Improved Liquidity - 100% of Securities Lower Capital Utilization - Now In AFS Portfolio RWA Significantly Lower 33% 89% 100% 17% 11% 2Q 25 3Q25 RWA AFS HTM 2Q 25 3Q 25 Risk wei
Slide 12: Non-Interest Income
Non-Interest Income HIGHLIGHTS & DEVELOPMENTS • Well diversified income stream continued to perform well in Q3, led by: ◦ Strength in service charges and interchange fees reflective of growth in core client base and seasonal market activity ◦ Mortgage revenue benefiting from a more effective sales p
Slide 13: Non-Interest Expense
Non-Interest Expense HIGHLIGHTS & DEVELOPMENTS • Excluding the items noted below, non-interest expense was roughly flat linked quarter and remains a top strategic priority for management • Non-Interest expense in the third quarter was impacted by the following expenses directly related to the balanc
Slide 14: Strong Capital Position
Strong Capital Position TCE/TA* Leverage Ratio $13.68 $13.96 $14.32 $9.76 9.25% 9.59% 8.88% 8.22% 8.37% 8.19% 7.83% 7.60% 4Q24 1Q25 2Q25 3Q25 4Q24 1Q25 2Q25 3Q25** CET 1 Ratio Total RBC Ratio 11.00% 11.32% 11.48% 10.19% 14.26% 14.44% 15.03% 13.91% 4Q24 1Q25 2Q25 3Q25** 4Q24 1Q25 2Q25 3Q25** * The ta
Slide 15: Q4 2025 Guidance Summary
Q4 2025 Guidance Summary • Period-end total loans HFI to grow mid-single-digits on an annualized basis, from Q3 balances Loans (HFI) • Growth primarily in higher-yielding commercial loans • Period-end total deposit balances to decline low-single-digits, primarily related to remaining transition of D
Slide 16: Appendix
HORIZON‘ BANK Appendix
Slide 17: Diverse Commercial Lending Portfolio
Diverse Commercial Lending Portfolio 09/30/2025 % of Commercial % of Total Loan COMMERCIAL LOANS BY INDUSTRY Balance Portfolio Portfolio STRONG AND TRADITIONAL Lessors - Residential Multi 304 9.6 % 6.3 % COMMERCIAL LENDING NOO- Warehouse/Industrial 250 7.9 % 5.2 % Health Care, Educational Social Ass
Slide 18: Use of Non-GAAP Financial Measures
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- p
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 $
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 $ 7
Slide 22: 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