What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-08 compared with 2024-11-12 · 368 added, 516 removed, 1033 unchanged (46% of the section changed)

4 unchanged sentences

(Dollar Amounts in Thousands)

September 30,

2025 December 31,

Cash and due from banks $ 89,643 $ 92,300

Interest earning deposits 12,107 12,071

Federal funds sold 113,912 401,672

Interest-bearing deposits in banks 80,023 201,131

Total cash and cash equivalents 169,666 293,431

17 unchanged sentences

Total deposits 5,765,783 5,600,652

Borrowings 1,265,143 1,353,050

Short and long term borrowings 900,069 1,232,252

Subordinated notes 55,772 55,738

7 unchanged sentences

Common stock, no par value, Authorized 99,000,000 shares

43,712,059 shares issued and outstanding at September 30, 2024 and 43,652,063 shares issued and outstanding at December 31, 2023

44,097,291 and 44,226,819 shares issued at March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital 360,522 363,761

Retained earnings 452,945 436,122

Accumulated other comprehensive loss ( 57,681 ) ( 66,609 )

Accumulated other comprehensive income (loss) ( 37,406 ) ( 36,301 )

Total stockholders’ equity 776,061 763,582

5 unchanged sentences

(Dollar Amounts in Thousands, Except Per Share Data)

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

Three Months Ended

March 31, 2025 March 31, 2024

Interest Income

Loans receivable $ 75,488 $ 63,003 $ 214,322 $ 178,961

Interest and fees on loans $ 74,457 $ 66,954

Investment securities - taxable 6,039 7,362

4 unchanged sentences

Deposits 25,601 27,990

Borrowed funds 11,131 11,224 34,274 30,713

Short and long term borrowings 9,188 11,930

Subordinated notes 829 831

3 unchanged sentences

Credit loss expense 1,376 805

Net Interest Income after Credit Loss Expense 45,866 41,827 131,259 132,302

Net Interest Income after Provision for Loan Losses 50,891 42,483

Non-interest Income

5 unchanged sentences

Gain on sale of mortgage loans 1,076 626

Mortgage servicing income, net 412 631 1,301 1,984

Mortgage servicing income net of impairment 385 439

Increase in cash value of bank owned life insurance 335 298

10 unchanged sentences

Core deposit intangible amortization 816 872

Merger related expense 305 —

Other losses 228 16

2 unchanged sentences

Income Before Income Taxes 28,084 15,305

Income tax expense (benefit) ( 75 ) 1,284 2,972 4,599

Net Income $ 18,180 $ 16,205 $ 46,311 $ 53,196

Income tax expense 4,141 1,314

Net Income Available to Common Shareholders $ 23,943 $ 13,991

Basic Earnings Per Share $ 0.55 $ 0.32

5 unchanged sentences

(Dollar Amounts in Thousands)

Three Months Ended Nine Months Ended

September 30, September 30

2024 2023 2024 2023

Three Month Ended

Net Income $ 23,943 $ 13,991

Other Comprehensive Income (Loss)

Change in fair value of derivative instruments:

Change in fair value of derivative instruments for the period — — — ( 523 )

Reclassification adjustment for swap termination gain realized in income — — — ( 1,453 )

Income tax effect — — — 415

Changes from derivative instruments — — — ( 1,561 )

Change in securities:

Unrealized gain (loss) for the period on available for sale securities 20,800 ( 32,139 ) 11,791 ( 19,790 )

Accretion from transfer of securities from available for sale to held to maturity securities ( 162 ) ( 158 ) ( 490 ) ( 531 )

Reclassification adjustment for securities losses realized in income — — — 480

Unrealized gain (loss) for the period on AFS securities ( 1,640 ) ( 5,748 )

Amortization from transfer of securities from available for sale to held to maturity securities ( 166 ) ( 160 )

Reclassification adjustment for securities (gains) losses realized in income 407 —

Income tax effect 294 1,241

1 unchanged sentence

Other Comprehensive Income (Loss), Net of Tax ( 1,105 ) ( 4,667 )

Comprehensive Income (Loss) $ 34,484 $ ( 9,310 ) $ 55,239 $ 35,960

Comprehensive Income $ 22,838 $ 9,324

See notes to condensed consolidated financial statements

4 unchanged sentences

Three Months Ended

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total

Balances, July 1, 2023 $ — $ — $ 354,953 $ 452,209 $ ( 97,919 ) $ 709,243

Net income — — — 16,205 — 16,205

Other comprehensive income, net of tax — — — — ( 25,515 ) ( 25,515 )

Amortization of unearned compensation — — 944 — — 944

Net settlement of share awards — — ( 482 ) — — ( 482 )

Stock retirement plans — — 63 — — 63

Cash dividends on common stock ($ 0.16 per share)

— — — ( 7,089 ) — ( 7,089 )

Balances, September 30, 2023 $ — $ — $ 355,478 $ 461,325 $ ( 123,434 ) $ 693,369

Balances, July 1, 2024 $ — $ — $ 357,673 $ 442,977 $ ( 73,985 ) $ 726,665

Net income — — — 18,180 — 18,180

Other comprehensive loss, net of tax — — — — 16,304 16,304

Amortization of unearned compensation — — 853 — — 853

Net settlement of share awards — — ( 73 ) — — ( 73 )

Cash dividends on common stock ($ 0.16 per share)

— — — ( 7,107 ) — ( 7,107 )

Balances, September 30, 2024 $ — $ — $ 358,453 $ 454,050 $ ( 57,681 ) $ 754,822

See notes to condensed consolidated financial statements

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

(Dollar Amounts in Thousands, Except Per Share Data)

Nine Months Ended

Three Months Ended

Stock Additional

5 unchanged sentences

Net income — — — 13,991 — 13,991

Other comprehensive income, net of tax — — — — ( 17,236 ) ( 17,236 )

Other comprehensive loss, net of tax — — — — ( 4,667 ) ( 4,667 )

Amortization of unearned compensation — — 907 — — 907

Net settlement of share awards — — ( 708 ) — — ( 708 )

Stock retirement plans — — ( 153 ) — — ( 153 )

Cash dividends on common stock ($ 0.16 per share)

— — — ( 7,085 ) — ( 7,085 )

Balances, September 30, 2023 $ — $ — $ 355,478 $ 461,325 $ ( 123,434 ) $ 693,369

Balances, March 31, 2024 $ — $ — $ 356,599 $ 435,927 $ ( 71,276 ) $ 721,250

Balances, January 1, 2025 — — 363,761 436,122 ( 36,301 ) 763,582

5 unchanged sentences

— — — ( 7,120 ) — ( 7,120 )

Balances, September 30, 2024 $ — $ — $ 358,453 $ 454,050 $ ( 57,681 ) $ 754,822

Balances, March 31, 2025 $ — $ — $ 360,522 $ 452,945 $ ( 37,406 ) $ 776,061

See notes to condensed consolidated financial statements

3 unchanged sentences

(Dollar Amounts in Thousands)

Nine Months Ended

Three Months Ended

2025 March 31,

Operating Activities

1 unchanged sentence

Items not requiring (providing) cash

Credit loss expense 4,218 1,185

Provision for credit losses 1,376 805

Depreciation and amortization 2,475 2,649

1 unchanged sentence

Amortization of mortgage servicing rights 507 476

Net amortization of premiums and discounts 6,496 7,742

Net amortization of premiums and discounts on securities 1,885 2,182

Loss on sale of investment securities 407 —

Gain on sale of mortgage loans ( 1,076 ) ( 626 )

Proceeds from sales of loans held for sale 91,515 107,436

Gain on sale of portfolio loans ( 7,000 ) —

Proceeds from sales of loans 26,073 21,432

Loans originated for sale ( 26,407 ) ( 20,517 )

Gain on cash value life insurance ( 335 ) ( 298 )

Gain on sale of other real estate owned ( 74 ) ( 234 )

Gain on other real estate owned ( 13 ) ( 64 )

Net change in:

5 unchanged sentences

Investing Activities

Purchases of securities available for sale $ — $ ( 1,435 )

Proceeds from sales of securities available for sale 4,132 —

Proceeds from maturities, calls and principal repayments of securities available for sale 597 4,369

Purchases of securities held to maturity ( 312 ) ( 10,141 )

Proceeds from maturities, calls and principal repayments of securities held to maturity 52,586 61,191

Proceeds from maturities of securities held to maturity 17,683 18,233

Net change in interest-earning time deposits 735 490

Purchase of FHLB stock — ( 19,317 )

Redemption of FHLB stock 8,414 —

Purchase of loans — ( 153,743 )

Proceeds from sale of portfolio loans 54,990 —

Net change in loans ( 47,159 ) ( 47,365 )

2 unchanged sentences

Proceeds from bank owned life insurance 376 22,917

Net cash used in investing activities $ ( 322,430 ) $ ( 55,748 )

Net cash provided by (used in) investing activities $ 38,860 $ ( 175,225 )

Financing Activities

5 unchanged sentences

Dividends paid on common stock ( 7,120 ) ( 7,086 )

Net cash provided by financing activities $ ( 23,992 ) $ 33,424

Net cash used in financing activities $ ( 177,870 ) $ ( 86,746 )

Net Change in Cash and Cash Equivalents $ ( 123,765 ) $ ( 255,427 )

5 unchanged sentences

Transfer of loans to other real estate and repossessed assets 1,034 253

Transfer of held to maturity securities to available for sale 4,539 —

Cash dividends declared, not paid 7,088 7,156

See notes to condensed consolidated financial statements

4 unchanged sentences

Note 1 - Accounting Policies

Reclassifications

Certain reclassifications have been made to the 2023 condensed consolidated financial statements to be comparable to 2024.

These reclassifications were not material and had no effect on net income.

Revisions to Previously Issued Financial Statements

In connection with the preparation of its financial statements for the second quarter of 2024, management corrected a prior computation of the Company’s total capital (to risk-weighted assets), Tier 1 capital (to risk-weighted assets), and Tier 1 capital (to average assets) ratios for purposes of the Company’s consolidated financial statements for holding companies filed with the Federal Reserve (the “Regulatory Filings”), which involved an incorrect classification of the Company’s subordinated notes as Tier 1 capital.

This incorrect classification affected the Company's regulatory capital disclosures in certain prior period filings with the SEC, as those disclosures were sourced from the Regulatory Filings.

The Company evaluated the effects of the incorrect classification to its previously filed Regulatory Filings and previously issued financial statements in accordance with SEC Staff Accounting Bulletins No.

108 and, based upon qualitative and quantitative factors, determined the errors were not material to the previously filed Regulatory Filings or the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2020, 2021, 2022 and 2023, or for any of the quarterly reports included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024.

The Company has amended its Regulatory Filings for the periods ended March 31, 2024 and December 31, 2023 to reclassify the subordinated notes balance from Tier 1 capital into Tier 2 capital.

The correction of the classification had no effect on the Company’s consolidated financial statements and related disclosures or the amounts or disclosure of the regulatory capital ratios of the Bank as included in its call reports.

The Company continues to exceed regulatory proxy ratios to be considered “well capitalized”, plus the capital conservation buffer, at September 30, 2024.

Nature of Business and Basis of Reporting

2 unchanged sentences

All inter–company balances and transactions have been eliminated.

The results of operations for the periods ended September 30, 2024 and September 30, 2023 are not necessarily indicative of the operating results for the full year of 2024 or 2023.

The results of operations for the periods ended March 31, 2025 and March 31, 2024 are not necessarily indicative of the operating results for the full year of 2025 or 2024.

The accompanying unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of Horizon’s management, necessary to fairly present the financial position, results of operations and cash flows of Horizon for the periods presented.

3 unchanged sentences

The condensed consolidated balance sheet of Horizon as of December 31, 2024 has been derived from the audited balance sheet as of that date.

Horizon Bancorp has one reportable segment.

Business activities are managed on a consolidated basis and revenues are derived primarily through commercial banking, offering retail banking and private wealth management from North America.

Horizon Bancorp’s chief operating decision maker (“CODM”) is the Chief Executive Officer.

The CODM assesses performance and allocates resources based on consolidated net income, as reported on the Consolidated Statement of Income , and the same accounting policies are applied as described in the Note 1 - Nature of Operations and Su mmary of Significant Accounting Policies included in Horizon’s 2024 Annual Report on Form 10–K.

The CODM uses net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the business or distribute dividends to shareholders.

The CODM also uses net income in competitive analysis by benchmarking against Horizon Bancorp’s competitors.

The competitive analysis, along with the monitoring of budgeted versus actual results, is used in assessing performance of the segment and in establishing management’s compensation

On July 16, 2019, the Board of Directors of the Company authorized a stock repurchase program for up to 2,250,000 shares of Horizon’s issued and outstanding common stock, no par value.

As of September 30, 2024, Horizon had repurchased a total of 803,349 shares at an average price per share of $ 16.89 .

As of March 31, 2025 , Horizon had repurchased a total of 803,349 shares at an average price per share of $ 16.89 .

Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted–average number of common shares outstanding.

5 unchanged sentences

The following table shows computation of basic and diluted earnings per share.

Three Months Ended Nine Months Ended

September 30, September 30, September 30, September 30,

(dollars in thousands, except per share data) 2024 2023 2024 2023

Three Months Ended

(dollar amounts in thousands, except per share) March 31, 2025 March 31, 2024

Basic earnings per share

1 unchanged sentence

Weighted average common shares outstanding

43,777,109 43,663,610

Basic earnings per share $ 0.55 $ 0.32

Diluted earnings per share

Net income $ 18,180 $ 16,205 $ 46,311 $ 53,196

Net income available to common shareholders 23,943 13,991

Weighted average common shares outstanding

43,777,109 43,663,610

Effect of dilutive securities:

3 unchanged sentences

Diluted Earnings per Share $ 0.54 $ 0.32

There were 87,012 and 87,012 shares for the three and nine months ended September 30, 2024 which were not included in the computation of diluted earnings per share because they were non–dilutive.

There were 665,063 and 624,189 shares for the three and nine months ended September 30, 2023 which were not included in the computation of diluted earnings per share because they were non–dilutive.

There were 202,139 shares for the three months ended March 31, 2025 which were not included in the computation of diluted earnings per share because they were non–dilutive.

There were 86,353 shares for the three months ended March 31, 2024 which were not included in the computation of diluted earnings per share because they were non–dilutive.

HORIZON BANCORP, INC.

4 unchanged sentences

The fair value of securities is as follows:

September 30, 2024

March 31, 2025

Available for sale

Treasury and federal agencies $ 69,421 $ — $ ( 6,176 ) $ 63,245

Treasury, federal agencies, and government sponsored agencies $ 2,258 $ — $ ( 408 ) $ 1,850

State and municipal 243,099 — ( 43,670 ) 199,429

Federal agency collateralized mortgage obligations 3,413 — ( 261 ) 3,152

Federal agency mortgage-backed pools 151,844 — ( 19,148 ) 132,696

government agency mortgage-backed securities 17,394 — ( 2,932 ) 14,462

Corporate notes 18,258 — ( 2,568 ) 15,690

Total available for sale investment securities $ 281,009 $ — $ ( 49,578 ) $ 231,431

September 30, 2024

March 31, 2025

Held to maturity

Treasury and federal agencies $ 283,851 $ — $ ( 31,817 ) $ 252,034

Treasury, federal agencies, and government sponsored agencies $ 275,854 $ — $ ( 34,442 ) $ 241,412

State and municipal 1,039,749 880 ( 191,006 ) 849,623

Federal agency collateralized mortgage obligations 47,232 — ( 6,441 ) 40,791

Federal agency mortgage-backed pools 308,725 — ( 37,641 ) 271,084

government agency mortgage-backed securities 343,057 — ( 47,415 ) 295,642

Private labeled mortgage–backed pools 28,558 — ( 3,489 ) 25,069

5 unchanged sentences

Available for sale

Treasury and federal agencies $ 72,938 $ — $ ( 8,561 ) $ 64,377

Treasury, federal agencies, and government sponsored agencies $ 2,258 $ — $ ( 457 ) $ 1,801

State and municipal 243,521 — ( 41,687 ) 201,834

Federal agency collateralized mortgage obligations 3,931 — ( 351 ) 3,580

Federal agency mortgage-backed pools 161,130 — ( 23,833 ) 137,297

government agency mortgage-backed securities 17,984 — ( 3,441 ) 14,543

Corporate notes 18,259 — ( 2,760 ) 15,499

6 unchanged sentences

Held to maturity

Treasury and federal agencies $ 287,259 $ — $ ( 41,299 ) $ 245,960

Treasury, federal agencies, and government sponsored agencies $ 278,383 $ — $ ( 39,253 ) $ 239,130

State and municipal 1,048,862 958 ( 183,114 ) 866,706

Federal agency collateralized mortgage obligations 51,325 — ( 7,846 ) 43,479

Federal agency mortgage-backed pools 323,649 — ( 48,621 ) 275,028

government agency mortgage-backed securities 349,726 — ( 54,904 ) 294,822

Private labeled mortgage–backed pools 29,278 — ( 3,958 ) 25,320

3 unchanged sentences

Held to maturity securities, net of allowance for credit losses $ 1,867,690

The amortized cost and fair value of securities available for sale and held to maturity at September 30, 2024 and December 31, 2023, by contractual maturity, are shown below.

The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2025 and December 31, 2024, by contractual maturity, are shown below.

Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Value Amortized

5 unchanged sentences

263,615 216,969 264,038 219,134

Federal agency collateralized mortgage obligations 3,413 3,152 3,931 3,580

Federal agency mortgage–backed pools 151,844 132,696 161,130 137,297

government agency mortgage-backed securities 17,394 14,462 17,984 14,543

Total available for sale investment securities $ 281,009 $ 231,431 $ 282,022 $ 233,677

5 unchanged sentences

1,472,376 1,229,416 1,488,844 1,246,126

Federal agency collateralized mortgage obligations 47,232 40,791 51,325 43,479

Federal agency mortgage–backed pools 308,725 271,084 323,649 275,028

government agency mortgage-backed securities 343,057 295,642 349,726 294,822

Private labeled mortgage-backed pools 28,558 25,069 29,278 25,320

Total held to maturity investment securities $ 1,843,991 $ 1,550,127 $ 1,867,848 $ 1,566,268

As of September 30, 2024, investment securities with a fair value of $ 415.2 million were pledged as collateral against outstanding FHLB borrowings.

HORIZON BANCORP, INC.

3 unchanged sentences

The following tables show the gross unrealized losses and the fair value of the Company’s available for sale investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

September 30, 2024

March 31, 2025

Less than 12 Months 12 Months or More Total

3 unchanged sentences

Available for Sale Investment Securities

Treasury and federal agencies $ 447 $ ( 1 ) $ 62,798 $ ( 6,175 ) $ 63,245 $ ( 6,176 )

Treasury, federal agencies, and government sponsored agencies $ — $ — $ 1,850 $ ( 408 ) $ 1,850 $ ( 408 )

State and municipal — — 199,429 ( 43,670 ) 199,429 ( 43,670 )

Federal agency collateralized mortgage obligations — — 3,152 ( 261 ) 3,152 ( 261 )

Federal agency mortgage–backed pools — — 132,696 ( 19,148 ) 132,696 ( 19,148 )

government agency mortgage-backed securities — — 14,462 ( 2,932 ) 14,462 ( 2,932 )

Corporate notes — — 15,690 ( 2,568 ) 15,690 ( 2,568 )

6 unchanged sentences

Available for Sale Investment Securities

Treasury and federal agencies $ — $ — $ 64,377 $ ( 8,561 ) $ 64,377 $ ( 8,561 )

Treasury, federal agencies, and government sponsored agencies $ — $ — $ 1,801 $ ( 457 ) $ 1,801 $ ( 457 )

State and municipal — — 201,834 ( 41,687 ) 201,834 ( 41,687 )

Federal agency collateralized mortgage obligations — — 3,580 ( 351 ) 3,580 ( 351 )

Federal agency mortgage–backed pools — — 137,289 ( 23,833 ) 137,289 ( 23,833 )

government agency mortgage-backed securities — — 14,543 ( 3,441 ) 14,543 ( 3,441 )

Corporate notes — — 15,499 ( 2,760 ) 15,499 ( 2,760 )

1 unchanged sentence

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost.

As of September 30, 2024 and December 31, 2023, the Company had 2,338 and 2,290 securities, respectively, with market values below their cost basis.

The total fair value of these investments at September 30, 2024 and December 31, 2023 was $ 2.2 billion and $ 2.1 billion, which is approximately 89.7 % and 85.1 %, respectively, of the Company's available for sale and held to maturity securities portfolio.

These declines resulted primarily from fluctuations in market interest rates after purchase.

Management believes the declines in fair value for these securities are temporary.

No allowance for credit losses for available for sale debt securities was recorded at September 30, 2024 or December 31, 2023.

As of March 31, 2025 and December 31, 2024, the Company had 2,082 and 2,115 securities, respectively, with market values below their cost basis.

The total fair value of these investments at March 31, 2025 and December 31, 2024 remained consistent at $ 1.8 billion, which is approximately 86.0 % of the Company's available for sale and held to maturity securities portfolio.

No allowance for credit losses for available for sale debt securities was recorded at March 31, 2025 or December 31, 2024.

The allowance for credit losses for held to maturity securities is a contra asset valuation account that is deducted from the carrying amount of held to maturity securities to present the net amount expected to be collected.

1 unchanged sentence

Adjustments to the allowance for credit loss are reported in our Condensed Consolidated Statements of Income in credit loss expense.

We measure expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and consider historical credit loss information that is adjusted for current conditions and reasonable and

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

supportable forecasts.

We measure expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

With regard to U.S.

2 unchanged sentences

therefore, no allowance for credit losses has been recorded for these securities.

With regard to obligations of states and municipal, private label mortgage-backed and corporate note held to maturity securities, we consider (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities.

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

continue to make timely principal and interest payments under the contractual terms of the securities.

Historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant.

As of September 30, 2024 and December 31, 2023, there were no past due principal and interest payments associated with these securities.

An allowance for credit loss of $ 158,000 and $ 157,000 was recorded on these securities based on applying the long-term historical rating agency credit loss rate for similarly rated securities at September 30, 2024 and December 31, 2023, respectively.

As of March 31, 2025 and December 31, 2024, there were no past due principal and interest payments associated with these securities.

An allowance for credit loss of $ 140 thousand and $ 158 thousand was recorded on these securities based on applying the long-term historical rating agency credit loss rate for similarly rated securities at March 31, 2025 and December 31, 2024, respectively.

On a quarterly basis, the Company refreshes the credit quality indicator of each held-to-maturity security.

1 unchanged sentence

For state and municipal securities where no rating is available from the NRSROs, a consistent internally-assigned rating methodology is applied.

The amortized cost of these securities in the following tables subject to this methodology totaled $ 132.5 million as of September 30, 2024, and $ 143.7 million as of December 31, 2023.

The amortized cost of these securities in the following tables subject to this methodology totaled $ 119.1 million as of March 31, 2025, and $ 125.0 million as of December 31, 2024.

The following table summarizes credit ratings of our held-to-maturity securities at amortized cost for the periods indicated:

September 30, 2024 AAA AA A BBB BB Not Rated Total

Treasury and federal agencies $ — $ 283,851 $ — $ — $ — $ — $ 283,851

March 31, 2025 AAA AA A BBB BB Not Rated Total

Treasury, federal agencies, and government sponsored agencies $ — $ 275,854 $ — $ — $ — $ — $ 275,854

State and municipal 271,635 694,742 68,297 3,204 — 1,871 1,039,749

Federal agency collateralized mortgage obligations 47,232 — — — — — 47,232

Federal agency mortgage-backed pools 308,725 — — — — — 308,725

government agency mortgage-backed securities 343,057 — — — — — 343,057

Private labeled mortgage-backed pools 28,558 — — — — — 28,558

2 unchanged sentences

December 31, 2024 AAA AA A BBB BB Not Rated Total

Treasury and federal agencies $ — $ 287,259 $ — $ — $ — $ — $ 287,259

Treasury, federal agencies, and government sponsored agencies $ — $ 278,383 $ — $ — $ — $ — $ 278,383

State and municipal 273,629 698,428 66,079 10,726 — — 1,048,862

Federal agency collateralized mortgage obligations 51,325 — — — — — 51,325

Federal agency mortgage-backed pools 323,649 — — — — — 323,649

government agency mortgage-backed securities 349,726 — — — — — 349,726

Private labeled mortgage-backed pools 29,278 — — — — — 29,278

5 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

The following table details activity in the allowance for credit losses on held-to-maturity securities during the three and nine months ended September 30, 2024 and 2023.

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

The following table details activity in the allowance for credit losses on held-to-maturity securities during the three months ended March 31, 2025 and 2024.

March 31, 2025 March 31,

Beginning balance $ 158 $ 157

1 unchanged sentence

Ending balance $ 140 $ 158

Accrued interest receivable on available for sale debt securities and held to maturity secur ities totaled $ 13.8 million at September 30, 2024 and $ 14.7 million at December 31, 2023 and is excluded from the estimate of credit losses.

Accrued interest receivable on available for sale debt securities and held to maturity secur ities totaled $ 12.4 million at March 31, 2025 and $ 12.7 million at December 31, 2024 and is excluded from the estimate of credit losses.

government sponsored entities and agencies and mortgage–backed securities are either explicitly or implicitly guaranteed by the U.S.

4 unchanged sentences

In addition, the Company does not intend to sell these securities prior to the recovery of the amortized cost, which may not occur until maturity.

No allowance for credit losses was recognized for available for sale debt securities at September 30, 2024 and December 31, 2023.

Information regarding security proceeds, gross gains and gross losses, based on specific identification method, are presented below.

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

No allowance for credit losses was recognized for available for sale debt securities at March 31, 2025 and December 31, 2024.

During the three months ended March 31, 2025, the Company transferred and sold one corporate debt security classified as held-to-maturity as a result of a significant downgrade in the published credit rating in February 2025.

The net carrying amount and fair value of the transferred and sold security at the time of transfer was $ 4.6 million and $ 4.1 million, respectively, and resulted in a realized loss of $ 0.4 million upon sale that was recorded in losses on sale of investment securities within the condensed consolidated statement of income for the three months ended March 31, 2025.

Information regarding security proceeds, gross gains and gross losses are presented below.

March 31, 2025 March 31, 2024

Sales of securities available for sale

2 unchanged sentences

Gross losses ( 407 ) —

The tax benefit of the proceeds from the sale of securities available for sale was $ 0.1 million and zero for the three months ended March 31, 2025 and 2024.

The Company pledges securities related to borrowings capacity at the Federal Reserve and Federal Home Loan Bank.

The following table represents the fair value and amortized costs of these pledged securities.

March 31, 2025 December 31, 2024

Fair Value Amortized Cost Fair Value Amortized Cost

Pledge securities for borrowing availability at the Federal Reserve $ 832,429 $ 1,026,315 $ 851,384 $ 1,032,916

Pledge securities for FHLB borrowings $ 280,180 $ 327,837 $ 279,136 $ 333,613

HORIZON BANCORP, INC.

10 unchanged sentences

Commercial and industrial

Real estate Residential mortgage

Residential real estate Residential mortgage

Residential construction

Mortgage warehouse Mortgage warehouse

Consumer Installment

4 unchanged sentences

Construction loans are reviewed and rewritten prior to being originated as a term loan.

The following table presents total loans outstanding by portfolio class, as of September 30, 2024 and December 31, 2023:

September 30,

The following table presents outstanding loans held for investment by portfolio class, as of March 31, 2025 and December 31, 2024:

2025 December 31,

7 unchanged sentences

Residential construction 20,219 18,948

Mortgage warehouse 80,437 45,078

Total real estate 801,726 802,909

Installment 101,554 52,366

Indirect auto 341,979 399,946

Direct installment 92,323 97,190

Indirect installment 267,718 303,901

Home equity 566,597 564,884

3 unchanged sentences

Net loans $ 4,857,161 $ 4,795,060

Total loans include net deferred loan costs of $ 19.1 million at September 30, 2024 and $ 21.9 million at December 31, 2023, respectively.

Total loans include net unearned discounts and deferred loan costs of $ 13.5 million at March 31, 2025 and $ 14.9 million at December 31, 2024, respectively.

HORIZON BANCORP, INC.

3 unchanged sentences

Non–performing Loans

The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at September 30, 2024:

September 30, 2024

Non–accrual Loans Past

Accruing Non–accruing Loans with no Allowance for Credit Losses

The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at March 31, 2025:

March 31, 2025

Total Non-accrual Loans Past Due Over 90 Days Still Accruing Non-accruing Loans with no Allowance for Credit Losses

Owner occupied real estate $ 4,541 $ 239 $ 1,475

6 unchanged sentences

Residential construction — — —

Mortgage warehouse — — —

Total real estate 12,763 — —

Installment 371 27 —

Indirect auto 1,304 228 —

Direct installment 264 327 —

Indirect installment 1,586 130 —

Home equity 6,025 791 —

7 unchanged sentences

December 31, 2024

Non–accrual Loans Past

Accruing Non–accruing Loans with no Allowance for Credit Losses

Total Non-accrual Loans Past Due Over 90 Days Still Accruing Non-accruing Loans with no Allowance for Credit Losses

Owner occupied real estate $ 2,448 $ — $ 1,419

6 unchanged sentences

Residential construction — — —

Mortgage warehouse — — —

Total real estate 11,215 — —

Installment 88 — —

Indirect auto 899 299 —

Direct installment 338 128 —

Indirect installment 1,542 358 —

Home equity 7,039 680 —

1 unchanged sentence

Total $ 25,792 $ 1,166 $ 3,636

There was no interest income recognized on non-accrual loans during the three and nine months ended September 30, 2024 and 2023, respectively, while the loans were in non-accrual status.

The amount of accrued interest receivable written off by the Company by reversing interest income was not material for the three and nine months ended September 30, 2024 and September 30, 2023, respectively.

There was no interest income recognized on non-accrual loans during the three months ended March 31, 2025 and 2024, respectively, while the loans were in non-accrual status.

The amount of accrued interest receivable written off by the Company by reversing interest income was not material for the during the three months ended March 31, 2025 and 2024, respectively.

HORIZON BANCORP, INC.

2 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

The following table presents the payment status by class of loan at September 30, 2024:

September 30, 2024

The following table presents the payment status by class of loan at March 31, 2025:

March 31, 2025

Current 30-59 Days

1 unchanged sentence

Past Due 90 Days or

Past Due Total

Past Due Total Past

Owner occupied real estate $ 680,066 $ 1,085 $ 389 $ 4,503 $ 5,977 $ 686,043

6 unchanged sentences

Residential construction 20,219 — — — — 20,219

Mortgage warehouse 80,437 — — — — 80,437

Total real estate 793,361 3,105 688 4,572 8,365 801,726

Installment 100,294 821 167 272 1,260 101,554

Indirect auto 336,038 4,310 971 660 5,941 341,979

Direct installment 90,649 938 334 402 1,674 92,323

Indirect installment 263,194 3,369 394 761 4,524 267,718

Home equity 554,203 7,061 1,104 4,229 12,394 566,597

10 unchanged sentences

Past Due 90 Days or

Past Due Total

Past Due Total Past

Owner occupied real estate $ 665,875 $ 1,195 $ — $ 95 $ 1,290 $ 667,165

6 unchanged sentences

Residential construction 18,948 — — — — 18,948

Mortgage warehouse 45,078 — — — — 45,078

Total real estate 792,162 — 4,163 6,584 10,747 802,909

Installment 52,001 304 10 51 365 52,366

Indirect auto 393,615 4,958 736 637 6,331 399,946

Direct installment 95,337 1,325 181 347 1,853 97,190

Indirect installment 298,048 4,179 806 868 5,853 303,901

Home equity 551,483 7,143 1,537 4,721 13,401 564,884

3 unchanged sentences

Modified Loans

The following tables detail the amortized cost at September 30, 2024 of loans that were modified to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and the amortized cost at September 30, 2023, of loans that were modified to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023:

Three Months Ended September 30, 2024

Principal Forgiveness Term Extension Interest Rate Reduction Other-Than-Insignificant Payment Delay Term Extension and Interest Rate Reduction Multiple 1

Total % of Loans Held for Investment

The following tables detail the amortized cost at March 31, 2025 of loans that were modified to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and the amortized cost at March 31, 2024, of loans that were modified to borrowers experiencing financial difficulty during the three ended March 31, 2024:

Three Months Ended March 31, 2025

Term Extension Interest Rate Reduction Other-Than-Insignificant Payment Delay Term Extension and Interest Rate Reduction Total % of Loans Held for Investment

Owner occupied real estate $ — $ — $ 653 $ — $ 653 0.10 %

Non-owner occupied real estate 433 — — — 433 0.03 %

Development spec & land 537 — — — 537 2.89 %

Commercial and industrial 363 — 752 — 1,115 0.12 %

Total $ 1,333 $ — $ 1,405 $ — $ 2,738 0.06 %

1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

HORIZON BANCORP, INC.

2 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

Nine Months Ended September 30, 2024

Principal Forgiveness Term Extension Interest Rate Reduction Other-Than-Insignificant Payment Delay Term Extension and Interest Rate Reduction Multiple 1

Total % of Loans Held for Investment

Three Months Ended March 31, 2024

Term Extension Interest Rate Reduction Other-Than-Insignificant Payment Delay Term Extension and Interest Rate Reduction Total % of Loans Held for Investment

Owner occupied real estate $ 1,948 $ — $ — $ — $ 1,948 0.30 %

Non-owner occupied real estate — — — — — — %

Commercial and industrial — 2,205 — — 437 — 2,642 0.3 %

Total $ — $ 7,911 $ — $ 651 $ 437 $ — $ 8,999 0.3 %

1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

Three Months Ended September 30, 2023

Principal Forgiveness Term Extension Interest Rate Reduction Other-Than-Insignificant Payment Delay Term Extension and Interest Rate Reduction Multiple 1

Total % of Loans Held for Investment

Owner occupied real estate $ — $ 2,082 $ — $ — $ — $ — $ 2,082 0.3 %

Commercial and industrial — 1,278 — — 171 69 1,518 0.2 %

Total $ — $ 3,360 $ — $ — $ 171 $ 69 $ 3,600 0.1 %

1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

Nine Months Ended September 30, 2023

Principal Forgiveness Term Extension Interest Rate Reduction Other-Than-Insignificant Payment Delay Term Extension and Interest Rate Reduction Multiple 1

Total % of Loans Held for Investment

Owner occupied real estate $ — $ 2,762 $ — $ — $ — $ — $ 2,762 0.4 %

Development spec & land 863 — — — 863 2.60 %

Commercial and industrial 479 — 25 40 544 0.07 %

Total $ 3,290 $ — $ 25 $ 40 $ 3,355 0.07 %

1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

The following tables summarize the financial impacts of loan modifications and payment deferrals, as applicable, during the three and nine months ended September 30, 2024 and September 30, 2023:

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Three Months Ended September 30, 2024

Weighted Average Term Extension (In Months) Weighted Average Payment Delay (In Months) Term Extension (In Months) & Rate Reduction (In Percentage Terms)

The following tables summarize the financial impacts of loan modifications and payment deferrals, as applicable, during the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

Weighted Average Term Extension (In Months) Weighted average interest rate reduction (In Percentage Terms) Weighted Average Payment Delay (In Months) Term Extension (In Months) & Rate Reduction (In Percentage Terms)

Owner occupied real estate — — 6 —

Non-owner occupied real estate 14 — — —

Development spec & land 18 — — —

Commercial and industrial 11 — 6 —

Nine Months Ended September 30, 2024

Weighted Average Term Extension (In Months) Weighted Average Payment Delay (In Months) Term Extension (In Months) & Rate Reduction (In Percentage Terms)

Three Months Ended March 31, 2024

Owner occupied real estate 9 — — —

Non-owner occupied real estate — — — —

Development spec & land 3 — — —

Commercial and industrial 6 — 3 Weighted average term extension of 99 months & Weighted average interest rate reduction of 4.85 %

Three Months Ended September 30, 2023

Weighted Average Term Extension (In Months) Term Extension (In Months) & Rate Reduction (In Percentage Terms) Multiple 1

Owner occupied real estate 6 — —

Commercial and industrial 4 Weighted average term extension of 96 months and weighted average rate reduction of 1.95 %

Weighted Average term extension of 36 months and weighted average payment delay of 4 months

1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

Nine Months Ended September 30, 2023

Weighted Average Term Extension (In Months) Term Extension (In Months) & Rate Reduction (In Percentage Terms) Multiple 1

Owner occupied real estate 15 — —

Commercial and industrial 6 Weighted average term extension of 75 months and weighted average rate reduction of 1.04 %

Weighted Average term extension of 40 months and weighted average payment delay of 7 months

1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.

The financial impacts of the modifications did not significantly impact our determination of the allowance for credit losses during the periods presented above.

The Company had commitments to commercial and industrial borrowers of $ 0.3 million and $ 0.1 million at September 30, 2024 and December 31, 2023, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans in the form of an interest rate reduction;

an other-than-insignificant payment delay;

forgiveness of principal, or a term extension during the current reporting period.

HORIZON BANCORP, INC.

2 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

The following table presents the amortized cost basis at September 30, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:

September 30, 2024

The following table presents the amortized cost basis at March 31, 2025 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:

March 31, 2025

Current 30-89 Days Past Due 90 Days Past Due Total

1 unchanged sentence

Non-owner occupied real estate 927 — — 927

Development spec & land 537 — — 537

Commercial and industrial 3,959 136 — 4,095

Total commercial 8,998 — — 8,998

Total $ 8,493 $ 787 $ 2,038 $ 11,318

The following table presents the amortized cost basis at September 30, 2023 of loans to borrowers experiencing financial difficulty that had been modified on or after January 1, 2023 (the date we adopted ASU 2022-02) through September 30, 2023:

September 30, 2023

The following table presents the amortized cost basis at March 31, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:

March 31, 2024

Current 30-89 Days Past Due 90 Days Past Due Total

Owner occupied real estate $ 748 $ — $ — $ 748

Non-owner occupied real estate 2,090 — 966 3,056

Development spec & land 17 — — 17

Commercial and industrial 3,690 287 — 3,977

Total $ 6,545 $ 287 $ 966 $ 7,798

The Company did not have any loans to borrowers experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2024 and were modified within the twelve months prior to the payment default.

The following table provides the $ 2.8 million amortized cost basis of financing receivables that were modified in the form of term extension and other than significant payment delay in the last twelve months and were in payment default at March 31, 2025.

March 31, 2025

Other-than-Insignificant Payment Delay Term Extension Total

Commercial and Industrial $ — $ 136 $ 136

Owner Occupied 651 2,038 2,689

Total $ 651 $ 2,174 $ 2,825

The following table provides the $ 1.3 million amortized cost basis of financing receivables that were modified in the form of term extension and term extension & rate reduction in the last twelve months and were in payment default at March 31, 2024.

March 31, 2024

Term Extension Term Extension & Rate Reduction Total

Commercial and Industrial $ 219 $ 69 $ 287

Owner Occupied 966 — 966

Total $ 1,184 $ 69 $ 1,253

For purposes of this disclosure, the Company considers “default” to mean 30 days or more past due of contractual interest or principal.

The Company did not have any loans to borrowers experiencing financial difficulty that had a payment default during the three and nine month ended September 30, 2023 and had been modified on or after January 1, 2023 (date the Company adopted ASU 2022-02).

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Collateral Dependent Financial Assets

4 unchanged sentences

However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent.

The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at September 30, 2024 and December 31, 2023.

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

September 30, 2024

Real Estate Accounts Receivable/Equipment Other Total (1)

March 31, 2025

Real Estate Accounts

Equipment Other Total ACL

Owner occupied real estate $ 4,541 $ — $ — $ 4,541 $ 320

Non–owner occupied real estate 433 — — 433 —

Residential spec homes — — — — —

Development & spec land 537 — — 537 —

2 unchanged sentences

Total collateral dependent loans $ 7,122 $ 1,049 $ — $ 8,171 $ 981

(1) Collateral dependent loans had a collateral fair value of $ 3.0 million at September 30, 2024

(1) Collateral dependent loans had a collateral fair value of $ 5.6 million at March 31, 2025

December 31, 2024

Real Estate Accounts Receivable/Equipment Other Total (1)

Real Estate Accounts

Equipment Other Total ACL

Owner occupied real estate $ 2,448 $ — $ — $ 2,448 $ 224

Non–owner occupied real estate 444 — — 444 —

Residential spec homes — — — — —

Development & spec land 534 — — 534 —

3 unchanged sentences

(1) Collateral dependent loans had a collateral fair value of $ 6.3 million at December 31, 2024

As of September 30, 2024, the Company had a carrying value of $ 1.2 million of repossessed assets.

As of September 30, 2024, the Company had a recorded net investment of $ 0.6 million o f consumer mortgage loans in which foreclosure proceedings have commenced.

As of March 31, 2025, the Company had a carrying value of $ 1.0 million of repossessed assets.

As of March 31, 2025, the Company had a recorded net investment of $ 0.9 million o f consumer mortgage loans in which foreclosure proceedings have commenced.

Repossessed assets are a component of other assets within the condensed consolidated balance sheet.

Credit Quality Indicators

1 unchanged sentence

The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the credit quality grade.

• For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan.

• For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

officer, assigns the credit quality grade to the loan.

Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $ 3,000,000 to $ 6,000,000 ) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”).

3 unchanged sentences

Downgrades to impaired status require the concurrence of the CCBO and the Senior Workout Loan Manager.

• The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

classified loans.

• The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and classified loans.

These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade.

26 unchanged sentences

• At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory;

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

• At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss.

4 unchanged sentences

Risk Grade 4:

Satisfactory/Monitored (Pass)

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Satisfactory/Monitored

Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges.

3 unchanged sentences

Risk Grade 4W:

Management Watch (Pass)

Management Watch

Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk.

24 unchanged sentences

• Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms.

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

• The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.

5 unchanged sentences

However, based on existing conditions, these weaknesses make full collection of principal highly improbable.

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

• The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.

8 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

The following tables present loans by credit grades and origination year at September 30, 2024.

September 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Term Loans Revolving Loans Total

The following tables present loans by credit grades and origination year at March 31, 2025.

March 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Term Loans Revolving

Owner occupied real estate

4 unchanged sentences

Total owner occupied real estate $ 25,795 $ 78,198 $ 84,040 $ 90,617 $ 68,922 $ 221,413 $ 98,278 $ 18,780 $ 686,043

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ 1 $ — $ — $ 1

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Non–owner occupied real estate

4 unchanged sentences

Total non–owner occupied real estate $ 47,872 $ 187,776 $ 117,802 $ 256,685 $ 128,015 $ 469,062 $ 322,229 $ 11,852 $ 1,541,293

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ 1 $ — $ — $ 1

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Residential spec homes

4 unchanged sentences

Total residential spec homes $ — $ 360 $ — $ — $ 420 $ — $ 12,041 $ 4,140 $ 16,961

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ —

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Development & spec land

4 unchanged sentences

Total development & spec land $ 672 $ 818 $ 4,094 $ 777 $ 1,012 $ 2,622 $ 8,214 $ 404 $ 18,613

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ —

Commercial & industrial

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Commercial and industrial

Pass $ 145,152 $ 163,615 $ 94,714 $ 132,654 $ 66,821 $ 57,939 $ 43,633 $ 166,859 $ 871,387

2 unchanged sentences

Doubtful — — — — — — — — —

Total commercial & industrial $ 149,479 $ 111,358 $ 135,781 $ 77,395 $ 9,321 $ 71,695 $ 66,562 $ 187,009 $ 808,600

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ 40 $ 108 $ — $ 148

Total commercial and industrial $ 146,619 $ 166,012 $ 102,985 $ 134,167 $ 66,944 $ 61,729 $ 56,413 $ 183,672 $ 918,541

Gross charge-offs during period $ — $ — $ — $ — $ — $ 2 $ 5 $ — $ 7

Total commercial $ 220,958 $ 433,164 $ 308,921 $ 482,246 $ 265,313 $ 754,826 $ 497,175 $ 218,848 $ 3,181,451

HORIZON BANCORP, INC.

2 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

September 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Term Loans Revolving Loans Total

March 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Term Loans Revolving

Residential mortgage

2 unchanged sentences

Total residential mortgage $ 20,825 $ 69,099 $ 136,723 $ 160,452 $ 139,074 $ 255,334 $ — $ — $ 781,507

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ 5 $ — $ — $ 5

Gross charge-offs during period $ — $ — $ — $ — $ — $ 2 $ — $ — $ 2

Residential construction

2 unchanged sentences

Total residential construction $ — $ — $ — $ — $ — $ — $ 20,219 $ — $ 20,219

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ —

Mortgage warehouse

Performing $ — $ — $ — $ — $ — $ — $ — $ 80,437 $ 80,437

Non–performing — — — — — — — — —

Total mortgage warehouse $ — $ — $ — $ — $ — $ — $ — $ 80,437 $ 80,437

Gross charge–offs for the nine months ended September 30, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ —

September 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Term Loans Revolving Loans Total

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Total real estate $ 20,825 $ 69,099 $ 136,723 $ 160,452 $ 139,074 $ 255,334 $ 20,219 $ — $ 801,726

March 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Term Loans Revolving

Direct installment

Performing $ 3,333 $ 9,187 $ 56,629 $ 8,678 $ 4,705 $ 7,337 $ 34 $ 1,830 $ 91,732

Non–performing — 1 465 43 50 32 — — 591

Total installment $ 9,771 $ 63,763 $ 10,382 $ 5,951 $ 3,010 $ 6,740 $ 5 $ 1,932 $ 101,554

Gross charge–offs for the nine months ended September 30, 2024 $ 66 $ 59 $ 166 $ 1 $ 35 $ 22 $ 8 $ — $ 357

Indirect auto

Total direct installment $ 3,333 $ 9,188 $ 57,094 $ 8,721 $ 4,755 $ 7,369 $ 34 $ 1,830 $ 92,323

Gross charge-offs during period $ — $ 27 $ 15 $ 26 $ 6 $ — $ 4 $ — $ 78

Indirect installment

Performing $ — $ 24,257 $ 63,841 $ 115,978 $ 42,833 $ 19,093 $ — $ — $ 266,002

Non–performing — 45 302 772 302 295 — — 1,716

Total indirect auto $ 29,297 $ 76,789 $ 146,161 $ 57,530 $ 21,800 $ 10,402 $ — $ — $ 341,979

Gross charge–offs for the nine months ended September 30, 2024 $ — $ 227 $ 852 $ 330 $ 125 $ 80 $ — $ — $ 1,614

Total indirect installment $ — $ 24,302 $ 64,143 $ 116,750 $ 43,135 $ 19,388 $ — $ — $ 267,718

Gross charge-offs during period $ — $ 135 $ 174 $ 297 $ 58 $ 82 $ — $ — $ 746

Performing $ 3,287 $ 13,105 $ 20,460 $ 15,387 $ 4,972 $ 10,160 $ 25,997 $ 466,413 $ 559,781

1 unchanged sentence

Total home equity $ 3,287 $ 13,153 $ 20,941 $ 15,847 $ 4,972 $ 10,456 $ 31,528 $ 466,413 $ 566,597

Gross charge–offs for the nine months ended September 30, 2024 $ — $ 25 $ 52 $ 88 $ — $ 39 $ 109 $ 11 $ 324

Gross charge-offs during period $ — $ — $ — $ 7 $ — $ 4 $ 618 $ — $ 629

Total consumer $ 6,620 $ 46,643 $ 142,178 $ 141,318 $ 52,862 $ 37,213 $ 31,562 $ 468,243 $ 926,638

HORIZON BANCORP, INC.

3 unchanged sentences

The following tables present loans by credit grades and origination year at December 31, 2024.

December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Term Loans Revolving Loans Total

December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Term Loans Revolving

Owner occupied real estate

4 unchanged sentences

Total owner occupied real estate $ 78,748 $ 83,066 $ 93,647 $ 77,054 $ 36,920 $ 192,538 $ 92,227 $ 12,965 $ 667,165

Gross charge–offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ 15 $ 401 $ — $ 416

Gross charge-offs during period $ — $ — $ — $ — $ — $ 1 $ — $ — $ 1

Non–owner occupied real estate

4 unchanged sentences

Total non–owner occupied real estate $ 194,250 $ 119,886 $ 260,675 $ 134,938 $ 100,688 $ 381,005 $ 298,288 $ 11,726 $ 1,501,456

Gross charge–offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ 10 $ — $ — $ 10

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Residential spec homes

4 unchanged sentences

Total residential spec homes $ 362 $ — $ — $ 420 $ — $ — $ 10,986 $ 3,843 $ 15,611

Gross charge–offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ — $ 29 $ — $ 29

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Development & spec land

4 unchanged sentences

Total development & spec land $ 819 $ 4,139 $ 788 $ 1,133 $ 328 $ 2,356 $ 8,465 $ 599 $ 18,627

Gross charge–offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ 73 $ — $ — $ 73

Commercial & industrial

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Commercial and industrial

Pass $ 242,562 $ 105,877 $ 128,707 $ 73,008 $ 6,954 $ 54,764 $ 48,313 $ 179,370 $ 839,555

2 unchanged sentences

Doubtful — — — — — — — — —

Total commercial & industrial $ 124,998 $ 153,276 $ 94,197 $ 14,502 $ 21,384 $ 62,750 $ 72,777 $ 168,979 $ 712,863

Gross charge–offs for the year ended December 31, 2023 $ — $ 33 $ — $ 123 $ 25 $ 351 $ 344 $ — $ 876

Total commercial and industrial $ 244,651 $ 108,800 $ 130,270 $ 73,253 $ 7,221 $ 59,507 $ 58,835 $ 192,760 $ 875,297

Gross charge-offs during period $ — $ — $ — $ — $ — $ 45 $ 108 $ — $ 153

Total commercial $ 518,830 $ 315,891 $ 485,380 $ 286,798 $ 145,157 $ 635,406 $ 468,801 $ 221,893 $ 3,078,156

HORIZON BANCORP, INC.

2 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Term Loans Revolving Loans Total

December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Term Loans Revolving

Residential mortgage

2 unchanged sentences

Total residential mortgage $ 69,465 $ 147,546 $ 162,905 $ 141,782 $ 79,269 $ 182,994 $ — $ — $ 783,961

Gross charge–offs for the year ended December 31, 2023 $ — $ 28 $ — $ — $ — $ 20 $ — $ — $ 48

Gross charge-offs during period $ — $ — $ — $ — $ — $ 5 $ — $ — $ 5

Residential construction

2 unchanged sentences

Total residential construction $ — $ — $ — $ — $ — $ — $ 18,948 $ — $ 18,948

Gross charge–offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ — $ — $ — $ —

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Mortgage warehouse

2 unchanged sentences

Total mortgage warehouse $ — $ — $ — $ — $ — $ — $ — $ — $ —

Gross charge–offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ — $ — $ — $ —

December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Term Loans Revolving Loans Total

Gross charge-offs during period $ — $ — $ — $ — $ — $ — $ — $ — $ —

Total real estate $ 69,465 $ 147,546 $ 162,905 $ 141,782 $ 79,269 $ 182,994 $ 18,948 $ — $ 802,909

December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Term Loans Revolving

Direct installment

Performing $ 11,306 $ 59,850 $ 9,510 $ 5,398 $ 2,679 $ 6,003 $ 60 $ 1,918 $ 96,724

Non–performing 1 374 46 19 — 26 — — 466

Total installment $ 14,835 $ 13,491 $ 7,869 $ 4,246 $ 4,476 $ 5,081 $ 6 $ 2,362 $ 52,366

Gross charge–offs for the year ended December 31, 2023 $ 33 $ 28 $ 31 $ 10 $ 32 $ 27 $ 6 $ — $ 167

Indirect auto

Total direct installment $ 11,307 $ 60,224 $ 9,556 $ 5,417 $ 2,679 $ 6,029 $ 60 $ 1,918 $ 97,190

Gross charge-offs during period $ 72 $ 93 $ 169 $ 1 $ 35 $ 78 $ 9 $ — $ 457

Indirect installment

Performing $ 26,839 $ 70,143 $ 130,610 $ 49,458 $ 17,647 $ 7,304 $ — $ — $ 302,001

Non–performing — 425 800 304 242 129 — — 1,900

Total indirect auto $ 65,309 $ 192,295 $ 81,085 $ 36,224 $ 16,814 $ 8,219 $ — $ — $ 399,946

Gross charge–offs for the year ended December 31, 2023 $ 86 $ 1,388 $ 708 $ 137 $ 58 $ 74 $ — $ — $ 2,451

Total indirect installment $ 26,839 $ 70,568 $ 131,410 $ 49,762 $ 17,889 $ 7,433 $ — $ — $ 303,901

Gross charge-offs during period $ 161 $ 449 $ 1,345 $ 527 $ 188 $ 99 $ — $ — $ 2,769

Performing $ 13,552 $ 21,845 $ 16,136 $ 5,110 $ 1,902 $ 9,210 $ 18,657 $ 470,753 $ 557,165

1 unchanged sentence

Total home equity $ 13,552 $ 22,266 $ 16,562 $ 5,110 $ 1,932 $ 9,506 $ 25,122 $ 470,834 $ 564,884

Gross charge–offs for the year ended December 31, 2023 $ — $ 10 $ — $ 103 $ — $ 91 $ 13 $ — $ 217

Gross charge-offs during period $ — $ 23 $ 52 $ 88 $ — $ 39 $ 110 $ 11 $ 323

Total consumer $ 51,698 $ 153,058 $ 157,528 $ 60,289 $ 22,500 $ 22,968 $ 25,182 $ 472,752 $ 965,975

HORIZON BANCORP, INC.

3 unchanged sentences

Note 4 – Allowance for Credit and Loan Losses

The following tables represent, by loan portfolio segment, a summary of changes in the ACL on loans for the three and nine months ended September 30, 2024 and 2023:

Three Months Ended September 30, 2024

Commercial Real Estate Mortgage Warehouse Consumer Total

Balance, beginning of period $ 31,941 $ 2,588 $ 736 $ 16,950 $ 52,215

Credit loss expense (reversal) 861 78 126 ( 21 ) 1,044

Charge–offs ( 38 ) ( 2 ) — ( 731 ) ( 771 )

Recoveries 90 11 — 292 393

Balance, end of period $ 32,854 $ 2,675 $ 862 $ 16,490 $ 52,881

Three Months Ended September 30, 2023

Commercial Real Estate Mortgage Warehouse Consumer Total

Balance, beginning of period $ 30,354 $ 3,648 $ 893 $ 15,081 $ 49,976

Credit loss expense (reversal) ( 665 ) ( 893 ) ( 179 ) 2,257 520

Charge–offs ( 263 ) ( 15 ) — ( 927 ) ( 1,205 )

Recoveries 46 54 — 308 408

Balance, end of period $ 29,472 $ 2,794 $ 714 $ 16,719 $ 49,699

Nine Months Ended September 30, 2024

The following tables represent, by loan portfolio segment, a summary of changes in the ACL on loans for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

Commercial Real Estate Mortgage Warehouse Consumer Total

Balance, beginning of period $ 30,953 $ 2,715 $ — $ 18,312 $ 51,980

Credit loss expense (reversal) 2,951 154 381 642 4,128

Credit loss expense (recovery) 1,640 405 — ( 502 ) 1,543

Charge-offs ( 7 ) ( 2 ) — ( 1,453 ) ( 1,462 )

1 unchanged sentence

Balance, end of period $ 32,640 $ 3,167 $ — $ 16,847 $ 52,654

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Commercial Real Estate Mortgage Warehouse Consumer Total

Balance, beginning of period $ 29,736 $ 2,503 $ 481 $ 17,309 $ 50,029

Credit loss expense (reversal) ( 2,380 ) ( 2,838 ) ( 306 ) 6,380 856

Credit loss expense (recovery) 606 147 178 ( 262 ) 669

Charge-offs 114 ( 1 ) — ( 823 ) ( 710 )

2 unchanged sentences

The accrued interest receivable on our loan receivables is excluded from the allowance for credit loss estimate and is included in interest receivable on our consolidated balance sheets.

As of September 30, 2024 and December 31, 2023, the accrued interest on our loan portfolio was $ 18.2 million and $ 23.7 million, respectively.

As of March 31, 2025 and December 31, 2024, the accrued interest on our loan portfolio was $ 25.1 million and 25.6 million, respectively.

The Company utilized the Cumulative Loss Rate method in determining expected future credit losses.

The loss rate method measures the amount of loan charge–offs, net of recoveries, (“loan losses”) recognized over the life of a closed pool and compares those loan losses to the outstanding loan balance of that pool as of a specific point in time (“pool date”).

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

To estimate a CECL loss rate for the pool, management first identifies the loan losses recognized between the pool date and the reporting date for the pool and determines which loan losses were related to loans outstanding at the pool date.

9 unchanged sentences

Management utilized Moody's economic forecast scenarios including both National and Regional econometrics, as well as management judgment, as the basis for the forecast period.

The historical loss rate was utilized as the base rate, and qualitative adjustments were utilized to reflect the forecast and other relevant factors.

The historical loss rate was utilized as the base rate,

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

and qualitative adjustments were utilized to reflect the forecast and other relevant factors.

The Company segments the loan portfolio into pools based on the following risk characteristics:

2 unchanged sentences

The following tables represent, by loan portfolio segment, a summary of changes in the activity in the liability for commitments to extend credit and standby letters of credit (please see note 14):

Three Months Ended

September 30, 2024 September 30, 2023

Balance, beginning of period Credit loss expense (reversal) Ending balance Balance, beginning of period Credit loss expense (reversal) Ending balance

Commercial $ — $ — $ — $ — $ — $ —

Real Estate 41 — 41 61 ( 8 ) 53

Mortgage Warehouse — — — — — —

Consumer 664 — 664 928 ( 249 ) 679

Total $ 705 $ — $ 705 $ 989 $ ( 257 ) $ 732

Nine Months Ended

September 30, 2024 September 30, 2023

Three Month Ended

March 31, 2025 45382 March 31, 2024

Balance, beginning of period Credit loss expense (reversal) Ending balance Balance, beginning of period Credit loss expense (reversal) Ending balance

5 unchanged sentences

Note 5 – Loan Servicing

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Loans serviced for others are not included in the accompanying condensed consolidated balance sheets.

The unpaid principal balances of loans serviced for others totaled approximately $ 1.44 billion and $ 1.479 billion at September 30, 2024 and December 31, 2023.

Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value.

For purposes of measuring impairment, risk characteristics including product type, investor type and interest rates were used to stratify the originated mortgage servicing rights.

Mortgage servicing rights are included in other assets on the balance sheets as of September 30, 2024 and December 31, 2023.

Three Months Ended Nine Months Ended

September 30, September 30, September 30, September 30,

2024 2023 2024 2023

The unpaid principal balances of loans serviced for others totaled approximately $ 1.42 billion and $ 1.44 billion at March 31, 2025 and December 31, 2024.

Activity for mortgage servicing rights and the related impairment allowance were as follows:

Three Month Ended

March 31, 2025 March 31, 2024

Mortgage servicing rights

Balance, beginning of period $ 18,432 $ 18,507 $ 18,807 $ 18,619

Balances, January 1 $ 18,195 $ 18,807

Servicing rights capitalized 245 207

Amortization of servicing rights ( 507 ) ( 476 )

Balance, end of period 18,328 18,650 18,328 18,650

Ending balance 17,933 18,538

Impairment allowance

Balance, beginning of period — — — —

Beginning balance — —

Additions — —

Reductions — —

Balance, end of period — — — —

Ending balance — —

Mortgage servicing rights, net $ 17,933 $ 18,538

1 unchanged sentence

Fair value, end of period 18,811 19,149

Fair value at March 31, 2025 was determined using a discounted cash flow analysis with the discount rates ranging from 9.0 % to 11.5 % and prepayment speeds ranging from 5.9 % to 13.5 %, depending on the stratification of the specific type.

Fair value at March 31, 2024 was determined using a discounted cash flow analysis with a discount rate of 11.0 % and prepayment speeds ranging from 6.0 % to 12.0 %, depending on the stratification of the specific type.

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Note 6 – Goodwill

The carrying amount of goodwill was $ 155.2 million as of September 30, 2024 and December 31, 2023, respectively.

There were no changes in the carrying amount of goodwill for the three and nine months ended September 30, 2024 and 2023.

The carrying amount of goodwill was $ 155.2 million as of March 31, 2025 and December 31, 2024, respectively.

There were no changes in the carrying amount of goodwill for the three months ended March 31, 2025 and 2024.

Goodwill is assessed for impairment annually, or more frequently if events occur or circumstances change that indicate an impairment may exist.

2 unchanged sentences

Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.

No goodwill impairment charges were recorded for the three and nine months ended September 30, 2024 and 2023.

During the third quarter of 2024, Horizon considered the amount by which fair value exceeded book value by performing a qualitative analysis.

The Company engaged a third-party valuation specialist in performing its quantitative impairment analysis during the third quarter of 2023, which included a combination of valuation approaches to determine the fair value of the Bank reporting unit.

These valuation approaches required certain assumptions such as the discount rate, economic conditions impacting interest and growth rates, the control premium, and a relative weighting given to the fair value derived by each of the valuation approaches used and supported that the fair value of goodwill exceeded its carrying value.

At the conclusion of the quantitative analysis for the third quarter of 2023, the Company determined that as of September 30, 2023, it was more likely than not that the fair value of goodwill exceeded its carrying value.

No goodwill impairment charges were recorded for the three months ended March 31, 2025 and 2024.

Note 7 – Repurchase Agreements

The Company transfers various securities to customers in exchange for cash at the end of each business day and agrees to

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

acquire the securities at the end of the next business day for the cash exchanged plus interest.

The Company transfers various securities to customers in exchange for cash at the end of each business day and agrees to acquire the securities at the end of the next business day for the cash exchanged plus interest.

The process is repeated at the end of each business day until the agreement is terminated.

1 unchanged sentence

The following tables show repurchase agreements accounted for as secured borrowings and the related securities, at fair value, pledged for repurchase agreements:

September 30, 2024

March 31, 2025

Remaining Contractual Maturity of the Agreements

1 unchanged sentence

Repurchase Agreements and repurchase-to-maturity transactions

Federal agency collateralized mortgage obligations $ 2,179 $ — $ — $ — $ 2,179

Federal agency mortgage–backed pools 112,573 — — — 112,573

Treasury federal agencies $ 34,751 $ — $ — $ — $ 34,751

government agency mortgage-backed securities 53,101 — — — 53,101

Private labeled mortgage-backed pools — — — — —

Total borrowings $ 122,399 $ — $ — $ — $ 122,399

Total Repurchase Agreements $ 87,852 $ — $ — $ — $ 87,852

Repurchase Agreements subject to offsetting arrangements —

3 unchanged sentences

Repurchase Agreements and repurchase-to-maturity transactions

Federal agency collateralized mortgage obligations $ 2,245 $ — $ — $ — $ 2,245

Federal agency mortgage–backed pools 126,349 — — — 126,349

Treasury federal agencies $ 34,191 $ — $ — $ — $ 34,191

government agency mortgage-backed securities 55,721 — — — 55,721

Private labeled mortgage-backed pools $ — $ — $ — $ — $ —

Total borrowings $ 136,030 $ — $ — $ — $ 136,030

Total Repurchase Agreements $ 89,912 $ — $ — $ — $ 89,912

Repurchase Agreements subject to offsetting arrangements —

Securities sold under agreements to repurchase are secured by securities with a carrying amount of $ 146.9 million and $ 145.2 million at September 30, 2024 and December 31, 2023, respectively.

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Securities sold under agreements to repurchase are secured by securities with a carrying amount of $ 97.9 million and $ 96.8 million at March 31, 2025 and December 31, 2024, respectively.

Note 8 – Subordinated Notes

6 unchanged sentences

Notwithstanding the foregoing, in the event that the Benchmark Rate is less than zero, the Benchmark Rate shall be deemed to be zero.

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Horizon may, at its option, beginning with the interest payment date of July 1, 2025 and on any interest payment date thereafter, redeem the Notes, in whole or in part.

7 unchanged sentences

On December 8, 2023, Horizon cancelled $ 3.5 million of the $ 60.0 million in Notes at a price of 89.5 recording a gain of $ 368,000 .

The balance net of unamortized issuance costs of the Notes was $ 55.7 million and $ 55.5 million at September 30, 2024 and December 31, 2023, respectively.

The balance net of unamortized issuance costs of the Notes was $ 55.8 million and $ 55.7 million at March 31, 2025 and December 31, 2024, respectively.

Unamortized debt issuance costs were $ 0.7 million and $ 0.8 million million at March 31, 2025 and December 31, 2024, respectively.

Note 9 – Derivative Financial Instruments

Our hedging policy allows the use of interest rate derivative instruments to manage our exposure to interest rate risk or hedge specified assets and liabilities.

All derivative instruments are carried on the balance sheet at their estimated fair value and are recorded in other assets or other liabilities, as appropriate.

Cash Flow Hedges

As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flow due to interest rate fluctuations, the Company entered into an interest rate swap agreement for a portion of its floating rate debt on July 20, 2018.

The agreement provides for the Company to receive interest from the counterparty at one month LIBOR and to pay interest to the counterparty at a fixed rate of 2.81 % on a notional amount of $ 50.0 million.

Under the agreement, the Company paid or received the net interest amount monthly, with the monthly settlements included in interest expense.

The Company terminated this interest rate swap agreement on May 23, 2023 and recorded a related gain of $ 1.5 million as a reduction of interest expense.

For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

All derivative instruments are carried on the balance sheet at their estimated fair value and are recorded in other assets or other liabilities, as appropriate, and in the net change in each of these financial statement line items in the accompanying consolidated statement of cash flows.

Fair Value Hedges

1 unchanged sentence

The Company enters into fixed rate loan agreements as part of its lending policy.

To mitigate the risk of changes in fair value based on fluctuations in interest rates, the Company has entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate.

Additionally, the Company entered into fair value hedges for certain of our fixed rate AFS municipal securities.

The instruments are designated as fair value hedges as the changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the hedged item attributable to changes in the SOFR swap rate, the designated benchmark interest rate.

For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings.

The change in fair value of both the hedge instruments and the underlying hedged item are recorded as gains or losses in non–interest income.

At September 30, 2024, the Company’s fair value hedges were effective and are not expected to have a significant impact on the Company’s net income over the next 12 months.

To mitigate the risk of changes in fair value based on fluctuations in interest rates, the Company previously entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate.

The Company also previously entered into interest rate swap agreements on individual investment securities, converting the fixed rate security to a variable rate.

During the year ended December 31, 2024, the Company terminated the fair value hedges on loans and securities, recording a deferred gain of $ 2.3 million on the loan termination that will be accreted into interest income over the remaining life of the underlying loans, and a mark-to-market adjustment of $ 0.3 million that was recorded in non-interest income on the termination of the fair value hedges against investment securities.

The change in fair value of both the hedge instruments and the underlying loan and security agreements are recorded as gains or losses in non–interest income.

The fair value hedges are considered to be highly effective.

HORIZON BANCORP, INC.

9 unchanged sentences

The Company enters into non–hedging derivatives in the form of mortgage loan forward sale commitments with investors and commitments to originate mortgage loans as part of its mortgage banking business.

At September 30, 2024, the Company’s fair value of these derivatives were recorded and over the next 12 months are not expected to have a significant impact on the Company’s net income.

At March 31, 2025, the Company’s fair value of these derivatives were recorded and over the next 12 months are not expected to have a significant impact on the Company’s net income.

The change in fair value of both the forward sale commitments and commitments to originate mortgage loans were recorded and the net gains or losses included in the Company’s gain on sale of loans.

1 unchanged sentence

Asset Derivatives Liability Derivatives

September 30, 2024 September 30, 2024

March 31, 2025 March 31, 2025

Value Notional

Derivatives designated as hedging instruments

Interest rate contracts – fair value hedges $ 40,113 $ 1,797 $ 1,445 $ 4

Total derivatives designated as hedging instruments 40,113 1,797 1,445 4

Derivatives not designated as hedging instruments

3 unchanged sentences

Total derivatives not designated as hedging instruments 529,124 21,662 529,989 21,199

Total derivatives $ 580,581 $ 17,675 $ 541,158 $ 15,439

Total derivatives subject to enforceable master netting arrangements, gross $ 529,124 $ 21,662 $ 529,989 $ 21,199

8 unchanged sentences

Value Notional

Derivatives designated as hedging instruments

Interest rate contracts – fair value hedges $ 53,468 $ 2,950 $ — $ —

Total derivatives designated as hedging instruments 53,468 2,950 — —

Derivatives not designated as hedging instruments

3 unchanged sentences

Total derivatives not designated as hedging instruments 534,531 29,046 521,520 28,817

Total derivatives $ 567,359 $ 26,714 $ 514,881 $ 24,024

Total derivatives subject to enforceable master netting arrangements, gross $ 534,531 $ 29,046 $ 521,520 $ 28,817

3 unchanged sentences

Collateral exchanged between the Company and dealer bank counterparties is generally subject to thresholds and transfer minimums, and usually consists of marketable securities.

At September 30, 2024, the Company pledged marketable securities as collateral with a carrying value of $ 19.0 million.

The effect of the derivative instruments on the condensed consolidated statements of comprehensive income (loss) for the three and nine month periods ended September 30 is as follows:

Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

Derivatives in cash flow hedging relationship

Interest rate contracts $ — $ — $ — $ ( 1,561 )

The effect of the derivatives in cash flow hedging relationships on the condensed consolidated statements of income for three and nine month periods ended September 30 is as follows:

At March 31, 2025, the Company pledged marketable securities as collateral with a carrying value of $ 5.8 million.

The effect of the derivative and the hedged item in fair value hedging relationships on the condensed consolidated statements of income for three month periods ended March 31, 2025 and March 31, 2024 is as follows:

Location of gain

recognized Amount of Gain (Loss) Recognized

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

Derivatives in cash flow hedging relationship

Interest rate contracts – cash flow hedges Interest expense – Borrowings $ — $ — $ — $ 1,832

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

The effect of the derivative and the hedged item in fair value hedging relationships on the condensed consolidated statements of income for three and nine month periods ended September 30 is as follows:

Location of gain (loss)

recognized on derivative and hedged item Amount of Gain (Loss) Recognized on Derivative and Hedged Item

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

recognized on derivative and Hedge item

Amount of Gain (Loss) Recognized on Derivative and Hedged Item

Three Month Ended

March 31, 2025 March 31, 2024

Derivatives designated as hedging instruments

4 unchanged sentences

Total $ — $ —

The effect of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and nine month periods ended September 30 is as follows:

The effect of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three month periods ended March 31, 2025 and March 31, 2024 is as follows:

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Location of gain

recognized on derivative Amount of Gain (Loss) Recognized on Derivative

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

Derivatives not designated as hedging instruments

recognized on derivative

Amount of Gain (Loss) Recognized on Derivative

Three Month Ended

March 31, 2025 March 31, 2024

Derivative not designated as hedging relationship

Mortgage loan contracts Non-interest income-Gain on sale of loans 509 ( 24 )

1 unchanged sentence

Total $ 463 $ ( 62 )

The following tables summarize the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.

Amortized Cost of Hedged Items Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Items

September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023

Loans $ 38,787 $ 40,788 $ ( 1,793 ) $ ( 2,532 )

HORIZON BANCORP, INC.

11 unchanged sentences

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy.

There have been no significant changes in the valuation techniques during the period ended September 30, 2024.

There have been no significant changes in the valuation techniques during the period ended March 31, 2025.

For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

3 unchanged sentences

Level 2 securities include U.S.

Treasury and federal agency securities, state and municipal securities, federal agency collateralized mortgage obligations and mortgage–backed pools and corporate notes.

Treasury and federal agency securities, state and municipal securities, U.S.

government agency mortgage-backed securities, corporate notes.

Level 2 securities are valued by a third party pricing service commonly used in the banking industry utilizing observable inputs.

4 unchanged sentences

In addition, model processes, such as an option adjusted spread model, is used to develop prepayment and interest rate scenarios for securities with prepayment features.

Equity securities

The fair value of the Company's equity investments is estimated by a third party utilizing readily determinable fair values quoted on an active market.

Interest rate swap agreements

The fair value of the Company’s interest rate swap agreements is estimated by a third party using inputs that are primarily unobservable including a yield curve, adjusted for liquidity and credit risk, contracted terms and discounted cash flow analysis, and therefore, are classified within Level 2 of the valuation hierarchy.

Commitments to originate mortgage loans and mortgage loan contract assets/liabilities

The Company’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable.

HORIZON BANCORP, INC.

3 unchanged sentences

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:

September 30, 2024

March 31, 2025

Fair Value Quoted Prices in Active Markets

5 unchanged sentences

State and municipal 199,429 — 199,429 —

Federal agency collateralized mortgage obligations 3,152 — 3,152 —

Federal agency mortgage–backed pools 132,696 — 132,696 —

government agency mortgage-backed securities 14,462 — 14,462 —

Corporate notes 15,690 — 15,690 —

3 unchanged sentences

Commitments to originate mortgage loans 509 — 509 —

Mortgage loan contracts liability 8 — 8 —

Mortgage loans contracts ( 46 ) — ( 46 ) —

Interest rate swap agreements liability ( 21,153 ) — ( 21,153 ) —

7 unchanged sentences

State and municipal 201,834 — 201,834 —

Federal agency collateralized mortgage obligations 3,580 — 3,580 —

Federal agency mortgage–backed pools 137,297 — 137,297 —

government agency mortgage-backed securities 14,543 — 14,543 —

Corporate notes 15,499 — 15,499 —

5 unchanged sentences

Interest rate swap agreements liability ( 28,817 ) — ( 28,817 ) —

(1) Prior period securities were included in available-for-sale.

Updated to align with comparable period.

HORIZON BANCORP, INC.

7 unchanged sentences

(Level 2) Significant

September 30, 2024

March 31, 2025

Collateral dependent loans $ 6,532 $ — $ — $ 6,532

2 unchanged sentences

Collateral Dependent Loans:

For loans identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized.

For loans identified as collateral dependent, the fair value method of measuring the amount of impairment is utilized.

This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value.

Collateral dependent loans are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.

The following table presents qualitative information about unobservable inputs used in recurring and non–recurring Level 3 fair value measurements, other than goodwill.

September 30, 2024

Loans Transferred to Held for Sale:

Once a decision has been made to sell loans not previously classified as held for sale, these loans are transferred into the held for sale category and carried at the lower of cost or fair value, less estimated costs to sell.

At the time of transfer into held for sale classification, any amount by which cost exceeds fair value is accounted for as a valuation allowance.

This activity generally pertains to loans with observable inputs, and

therefore, are classified within Level 2 of the fair value hierarchy.

However, should these loans include adjustments for changes in loan characteristics based on unobservable inputs, the loans would then be classified within Level 3 of the fair value hierarchy.

As of March 31, 2025 and December 31, 2024, there were zero and $ 64.8 million loans transferred to held for sale on the accompanying Consolidated Balance Sheets, respectively.

The following table presents qualitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements,.

March 31, 2025

Value Valuation

1 unchanged sentence

(Weighted Average)

Collateral dependent loans $ 3,455 Collateral based measurement Discount to reflect current market conditions and ultimate collectibility 16.1 %- 40.6 % ( 36.8 %)

Collateral dependent loans $ 6,532 Collateral based measurement Discount to reflect current market conditions and ultimate collectability 16.1 %- 86.0 % ( 39.4 %)

December 31, 2024

2 unchanged sentences

(Weighted Average)

Collateral dependent loans $ 2,918 Collateral based measurement Discount to reflect current market conditions and ultimate collectibility 16.9 %- 34.2 %( 21.5 %)

Collateral dependent loans $ 3,797 Collateral based measurement Discount to reflect current market conditions and ultimate collectability 16.1 %- 40.1 %( 36.6 %)

Note 11 – Fair Value of Financial Instruments

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(Table Dollar Amounts in Thousands, Except Per Share Data)

The following table does not include certain financial instruments that are recorded at fair value on a recurring basis, including some non-recurring financial instruments.

See Note 10 for more details.

The estimated fair values of financial instruments, as shown below, are not intended to reflect the estimated liquidation or market value of Horizon taken as a whole.

The disclosed fair value estimates are limited to Horizon’s significant financial instruments at September 30, 2024 and December 31, 2023.

The disclosed fair value estimates are limited to Horizon’s significant financial instruments at March 31, 2025 and December 31, 2024.

These include financial instruments recognized as assets and liabilities on the condensed consolidated balance sheets as well as certain off–balance sheet financial instruments.

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Cash and Cash Equivalents – Cash and cash equivalents are composed of:

cash and due from banks, interest earning deposits, and federal funds sold.

cash and due from banks, interest bearing deposits in banks, and federal funds sold.

The carrying amounts approximate fair value.

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For those securities where a quoted market price is not available, carrying amount is a reasonable estimate of fair value based upon comparison with similar securities.

Loans Held for Sale – The carrying amounts approximate fair value.

Loans Held for Sale – For mortgage loans, the fair value is derived from third party pricing models, based on active quotes.

For non-mortgage loans, the assets are carried at the lower of cost or fair value.

Net Loans – The fair value of net loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.

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Subordinated Notes – The fair value of subordinated notes is based on discounted cash flows based on current borrowing rates for similar types of instruments.

Junior Subordinated Debentures Issued to Capital Trusts – Rates currently available for debentures with similar terms and remaining maturities are used to estimate fair values of existing debentures.

Commitments to Extend Credit and Standby Letters of Credit – The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties.

For fixed–rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates.

The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date.

Due to the short–term nature of these agreements, carrying amounts approximate fair value.

Junior Subordinated Debentures to Capital Trusts – Rates currently available for debentures with similar terms and remaining maturities are used to estimate fair values of existing debentures.

HORIZON BANCORP, INC.

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The following tables present estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall.

September 30, 2024

Amount Quoted Prices in Active Markets

March 31, 2025

Amount Quoted Prices in

Active Markets

for Identical

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Cash and due from banks $ 89,643 $ 89,643 $ — $ —

Interest earning deposits 12,107 12,107 — —

Federal funds sold 113,912 113,912 — —

Interest- bearing deposits in banks 80,023 80,023 — —

Cash and cash equivalents 169,666 169,666 — —

Interest earning time deposits 735 — 735 —

Investment securities, held to maturity 1,843,851 — 1,550,127 —

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December 31, 2024

Amount Quoted Prices in Active Markets

Amount Quoted Prices in

Active Markets

for Identical

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Cash and cash equivalents 293,431 293,431 — —

Interest earning time deposits 2,205 — 2,190 —

Interest earnings time deposits 735 — 735 —

Investment securities, held to maturity 1,867,690 — 1,566,268 —

Loans held for sale 67,597 — 64,824 2,773

Loans, net 4,367,601 — — 4,072,568

Loans (excluding loan level hedges), net 4,795,060 — — 4,611,702

Stock in FHLB 53,826 — 53,826 —

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Note 12 – Stockholders' Equity

On September 17, 2024, the Company declared a quarterly dividend to common shareholders of $ 0.16 per share, which was paid on October 18, 2024 to shareholders of record on October 04, 2024.

Dividends declared were $ 0.16 and $ 0.48 per share during the three and nine months ended September 30, 2024, and $ 0.16 and $ 0.48 per share during the three and nine months ended September 30, 2023.

The components of accumulated other comprehensive loss, net of tax included in capital are as follows:

Accumulated Other Comprehensive Income (Loss)

September 30,

2025 December 31,

Unrealized gain (loss) on securities available for sale, net of tax $ ( 59,704 ) $ ( 69,018 )

Unamortized gain (loss) on securities held to maturity, previously transferred from AFS, net of tax 2,023 2,409

Unrealized gain (loss) on securities available for sale $ ( 39,167 ) $ ( 38,193 )

Unamortized gain (loss) on securities held to maturity, previously transferred from AFS 1,761 1,892

Total accumulated other comprehensive income (loss) $ ( 37,406 ) $ ( 36,301 )

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Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Company’s financial statements.

Under capital

Under capital adequacy guidelines and the regulatory framework for prompt corrective actions, the Company and Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off–balance–sheet items as calculated under regulatory accounting practices.

The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Company and Bank are subject to minimum regulatory capital requirements as defined and calculated in accordance

HORIZON BANCORP, INC.

2 unchanged sentences

(Table Dollar Amounts in Thousands, Except Per Share Data)

adequacy guidelines and the regulatory framework for prompt corrective actions, the Company and Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off–balance–sheet items as calculated under regulatory accounting practices.

The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Company and Bank are subject to minimum regulatory capital requirements as defined and calculated in accordance with the Basel III–based regulations.

with the Basel III–based regulations.

As allowed under Basel III rules, the Company made the decision to opt–out of including accumulated other comprehensive income in regulatory capital.

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In addition, to be categorized as well capitalized, the Company and Bank must maintain Total risk–based, Tier I risk–based, common equity Tier I risk–based and Tier I leverage ratios as set forth in the table below.

As of September 30, 2024 and December 31, 2023, the Company and Bank met all capital adequacy requirements to be considered well capitalized.

There have been no conditions or events since the end of the third quarter of 2024 that management believes have changed the Bank’s classification as well capitalized.

As of March 31, 2025 and December 31, 2024, the Company and Bank met all capital adequacy requirements to be considered well capitalized.

There have been no conditions or events since the end of the first quarter of 2025 that management believes have changed the Bank’s classification as well capitalized.

There is no threshold for well capitalized status for bank holding companies.

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(Table Dollar Amounts in Thousands, Except Per Share Data)

The following table presents Horizon and the Bank’s actual and required capital ratios as of September 30, 2024 and December 31, 2023, as well as the revisions to Horizon's regulatory capital ratios to reflect the correction of the capital computations for the foregoing periods:

The following table presents Horizon and the Bank’s actual and required capital ratios as of March 31, 2025 and December 31, 2024, as well as the revisions to Horizon's regulatory capital ratios to reflect the correction of the capital computations for the foregoing periods:

Actual Required for Capital

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Amount Ratio Amount Ratio Amount Ratio Amount Ratio

September 30, 2024

March 31, 2025

Total capital (to risk-weighted assets) 1

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Bank 683,028 11.97 256,787 4.50 399,446 7.00 370,914 6.50

Tier 1 capital (to total assets) (1)

Tier 1 capital (to average assets) 1

Consolidated 704,937 9.25 304,754 4.00 304,754 4.00 N/A N/A

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Total capital (to risk-weighted assets) (1)

Consolidated (As Revised)* $ 782,598 14.04 % $ 446,000 8.00 % $ 585,374 10.50 % N/A N/A

Consolidated (As Reported) 786,436 14.11 446,000 8.00 585,374 10.50 N/A N/A

Consolidated $ 800,209 13.91 % $ 460,266 8.00 % $ 604,099 10.50 % N/A N/A

Bank 725,383 12.64 % 459,039 8.00 % 602,489 10.50 % 573,799 10.00 %

Tier 1 capital(1)(to risk-weighted assets)

Consolidated (As Revised)* 676,411 12.13 334,500 6.00 473,874 8.50 N/A N/A

Consolidated (As Reported) 735,792 13.20 334,500 6.00 473,874 8.50 N/A N/A

Consolidated 690,183 12.00 % 345,199 6.00 % 489,033 8.50 % N/A N/A

Bank 671,095 11.70 % 344,279 6.00 % 487,729 8.50 % 459,039 8.00 %

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Bank 671,095 11.70 % 258,209 4.50 % 401,659 7.00 % 372,969 6.50 %

Tier 1 capital (to total assets) (1)

Consolidated (As Revised)* 676,411 8.61 314,306 4.00 314,306 4.00 N/A N/A

Consolidated (As Reported) 735,792 9.36 314,306 4.00 314,306 4.00 N/A N/A

Tier 1 capital(to average assets) (1)

Consolidated 690,183 8.88 % 310,825 4.00 % 310,825 4.00 % N/A N/A

Bank 671,095 8.64 % 310,539 4.00 % 310,539 4.00 % 388,174 5.00 %

(1) As defined by regulatory agencies

*Prior periods have been revised (see disclosures above)

HORIZON BANCORP, INC.

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Note 14 – Off-Balance Sheet Arrangements, Commitments, and Contingencies

Legal Proceedings

As of April 20, 2023, a putative class action lawsuit entitled Chad Key, et al.

Horizon Bancorp, Inc., et al., Case No.

1:23-cv-02961 (”Securities Action”) was filed against the Company and two of its officers in the U.S.

District Court for the Eastern District of New York.

The Securities Action asserts claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 alleging, among other things, the Company made materially false and misleading statements and failed to disclose material adverse facts which allegedly resulted in harm to a putative class of purchasers of our securities from March 9, 2022 and March 10, 2023.

As of (1) August 28, 2023, a lawsuit related to the Securities Action was filed by Sally Hundley, derivatively on behalf of the Company, against the Company, as nominal defendant, and 2 of the Company's officers and 10 of its directors and (2) August 31, 2023, a lawsuit also related to the Securities Action was filed by Aziz Chowdhury, derivatively on behalf of the Company, against the Company, as nominal defendant, and 2 of the Company's officers and 10 of its directors (the “Derivatives Actions”) in the U.S.

District Court for the Eastern District of New York.

The Derivative Actions allege, among other things, breach of the officers and directors' fiduciary duties.

The Derivative Actions have been consolidated and stayed pending resolution of any motion to dismiss in the Securities Action.

Based on our initial review of these actions, management believes that the Company has strong defenses to the claims and intends to vigorously defend against them.

As of September 30, 2024, no liabilities related to the above matters were recorded because we have concluded such liabilities are not probable and the amounts of such liabilities are not reasonably estimable.

In addition to the matters described above, from time to time, Horizon and its subsidiaries are involved in various legal proceedings incidental to the conduct of their business.

Management does not expect that the outcome of any such proceedings will have a material adverse effect on our consolidated financial position or results of operations.

Financial Instruments with Off-Balance Sheet Risk

In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk to meet the financing needs of its clients.

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The methodology for estimating the liability for unfunded loan commitments is consistent with the allowance for credit losses on loans.

The following table represents the commitments to extend credit and standby letters of credit as of September 30, 2024 and December 31, 2023, respectively:

September 30, 2024 December 31, 2023

The following table represents the commitments to extend credit and standby letters of credit as of March 31, 2025 and December 31, 2024 , respectively:

March 31, 2025 December 31, 2024

Commitments to extend credit $ 1,046,675 $ 1,018,302

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Note 15 - Subsequent Events

In October, the Company sold certain available-for-sale securities with a total fair market value of $ 293.1 million, and an amortiz ed cost of $ 332.2 million .

As a result, the Company incurred a net realized loss on sale of securitie s of $ 39.1 million .

HORIZON BANCORP, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Table Dollar Amounts in Thousands, Except Per Share Data)

Additionally, in October, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale.

The Company does not have any reportable subsequent events from March 31, 2025 to the reporting date.

HORIZON BANCORP, INC.

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And Results of Operations

For the Three and Nine Months ended September 30, 2024 and 2023

For the three months ended March 31, 2025 and 2024

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements