Horizon Bancorp (HBNC) 8-K Regulation FD Disclosure

A NASDAQ Traded Company - Symbol HBNC

Outline

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Industry Challenges

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Horizon’s Financial Results

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Horizon’s Key Objectives

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Horizon’s Business Model

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Be Horizon

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Customer Satisfaction

Industry Challenges

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Flat Yield Curve

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Asset Quality

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Residential Real Estate

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Decline in Real Estate Volume

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Depreciation in Property Values

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Subprime Lending

       2007 Year to Date Returns

                             Through April 30, 2007

Financial Results

How Do Banks Make Money

Interest Income

Revenue

Fee Income

   

Avoid Mistakes

Charge-offs / Losses

Interest Expense

Attract Deposits

Salary & Benefits

Invest In Team / Advisors

Operating Expenses

Invest In the Team’s Needs

Tax Expense

Pay Uncle Sam

EPS

Net Income

CAGR = 13.43%

Growth in Average Assets

2006

2003

Average Loan Mix

Source: FDIC Uniform Bank

Performance Report

                            Net Income

CAGR = 10.20%

Key Strategies for 2007

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Increase Fee Income

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Improve Management of Net Interest Margin

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Add New Revenue Streams

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De Novo Branching

Increase Fee Income

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Trust Growth

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Employee Stock Ownership Plans

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Employee Benefits

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Core Assets Under Management

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Management Change

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Deposit Service Charges

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Gain on Sale of Mortgage Loans

Improve Net Interest Margin

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Third Party Consultant – Vining Sparks

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Implement Hedging Strategies

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Core Deposit Growth

New Revenue Streams

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People First - Location Second

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Pursue Opportunities

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Wholesale Lending

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Indirect Lending

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Chicago

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Northern Indiana

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Southwest Michigan

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Sell majority of out of market production

Current Locations

                 Stock Performance – 5 Years

Be Horizon

Commitment to Service Quality

Thomas H. Edwards

Executive Vice President

Be Horizon

Commitment to Service Quality

2000

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Tag-line - Exceptional Service, Sensible Advice

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Company Values

2003

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Be Horizon

2004

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Through the Lens of the Customer

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Service Philosophy

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Service Standards

Be Horizon

Commitment to Service Quality

2005

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Service Plus Skills

2006

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Sales Plus Skills

2007

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Referral Plus Skills

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Sensible Advice

Be Horizon

Service Quality Pyramid

Be Horizon

Service Quality Pyramid

Be Horizon

Service Quality Pyramid

Be Horizon

Service Quality Pyramid

Be Horizon

Service Quality Pyramid

Be Horizon

Service Quality Pyramid

HORIZON BANK

CUSTOMER SERVICE SURVEY
RESULTS AND ANALYSIS

JANUARY 11, 2007

 Stratus Group Consultants, Inc. 

Lee A. Gill, J.D., CEO

Greg Ladewski, Esq., COO

TOTAL SURVEY RESPONSES

TOTAL SURVEY RESPONSES

TOTAL SURVEY RESPONSES

TOTAL SURVEY RESPONSES

TOTAL SURVEY RESPONSES

TOTAL SURVEY RESPONSES

TOTAL SURVEY RESPONSES

TOTAL SURVEY RESPONSES

A NASDAQ Traded Company - Symbol HBNC