Horizon Bancorp 8K Regulation FD Disclosure | HBNC 22 Mar 10

A NASDAQ Traded Company - Symbol HBNC

March 2010

Forward-Looking Statements

This presentation may contain forward-
looking statements regarding financial
performance, business prospects, growth
and operating strategies. For these
statements, Horizon claims the protection
of the safe harbor for forward-looking
statements contained in the Private
Securities Litigation Reform Act of 1995.

*Based on price at the close of business on March 12, 2010 at $18.76 per share

**Total assets and deposits as of December 31, 2009

Corporate Profile

• Shares Outstanding 3.29 Million Shares

• Market Cap* $61.6 Million

• Total Assets** $ 1.4 Billion

• Total Deposits** $ 952 Million

• Branches 19

• Ownership

– Insiders 10%

– Employee Benefit Plans 15%

– Institutional & Mutual Funds 22%

Current Locations

Porter County

Elkhart County

American Trust Branches to
Stay Open

American Trust Branch to
Close

Current Locations

Managing Well Through High
Unemployment

Change in Unemployment Rate Slowing

Major Competitors Provide Opportunity

• Indiana

– Chase

– Fifth Third

– PNC f/k/a National
City

– Centier

– 1st Source

– La Porte Savings

– Harris

– First Midwest

– Peoples Bank

– Citizens Financial

• Michigan

– Chase

– Fifth Third

– Chemical

– Flag Star

– 1st Source

– Edgewater

– New Buffalo Savings

Financial Highlights

Record Earnings Ten Consecutive Years

Improving Net Interest (“NIM”) Margin

* Net Interest Income in Millions

Sound NIM Strategies

• Extend Liabilities

– Extend Duration of Retail CDs

– Increase Long-Term Brokered CDs

– Horizon’s TRUP - SWAP for Fixed Ten-Year Rate

– Extend FHLB advances

– Long-Term Repurchase Agreements with Imbedded
Caps

• Shorten Assets

– Commercial loan SWAPs Fixed for Variable

– Shrink Mortgage Portfolio

– Increase Cash Flow in Investment Portfolio

• Liquidity, Liquidity, Liquidity

Challenges to the NIM Strategy

• In Low Interest Rate Environment

– Extending liabilities is more expensive

– Shorter term assets have lower yields

• Slow Growth in Earning Assets

• Increase in Non Earning Assets (non-accrual, OREO,
FDIC pre-payment)

• Loans with Floors will Reprice at Slower Rate

• Competitive Pressure

Peer Data Source: KBW Report dated February 2010 covering Indiana Publicly Traded Banks; peer data represents a peer average and is as of December 2009
for all periods reviewed.

Horizon Exceeds Peer Average for Efficiency

2009’s Expenses Too High
& Key Management Focus
Non Interest Income and Expenses as % of Total Assets

Source: SNL

Balance Sheet

Steady Asset Growth

CAGR 10.1%

CAGR 9.23%

Commercial 35%

Mortgage
Warehouse

19%

Residential

Mortgage

15%

December 31, 2004

December 31, 2009

Consumer

31%

Good Balance in Loan Portfolio

“Low Percentage” of Development Loans

As a Percent of Total Commercial Loans
December 31, 2009

Dollars in Millions

Multiple Sources - Funding Growth

Asset Quality

Good Credit Culture

• Team of Seasoned Underwriters

– Average Tenure > 20 years

• Primarily an In Market and Full Recourse Lender

• Predominately a Secured Lender

• Retail & Small Business Focus

– Average Commercial Loan Size Approximately $250,000

• We Manage Lending Limits

– House Limit $10 million

– Legal Limit > $18 million

– Five Loan Relationships with Balances > $5 million

Increase in Non-Performing Loans

as a % of Capital

2005

2007

2006

2008

2009

As of December 31, 2009, non-performing loans includes OREO, Non-accrual & Impaired Loans

Good Diversity in Non-Performing & Real Estate Owned

Non Performing and REO By Classification

December 31, 2009

Dollars in Millions

Horizon Outperforms Peer Group

Non-Performing Loans Plus OREO to Gross Loans Plus OREO

Source: Custom group of 23 publicly traded banks headquartered in the state of Indiana from FDIC Uniform
Bank Performance Reports

Loan Charge-Offs Comparable to Peer

Source: Custom group of 18 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Reports

Consumer Loans Lead in Dollars Charged-off

Charge-offs by Type

Horizon Out-Performs National Averages

For Consumer Indirect Installment Net Charge-Offs

Building Loan Loss Reserve

Invest in Horizon

Third Party - Testimonials

• Nine out of Ten Customers - Would Refer a
Friend

• Best Bank - The News Dispatch Readers Poll - Nine
out of Last Ten Years

• Best Trust Company - Northwest Indiana Times -
Readers Poll

• Family Friendly Work Policies - Clarian Award

• Ranked in the Top 200 Community Banks
for Financial Performance - US Banker
Magazine - June 2009

Horizon Does Things Right

• We Understand Fiduciary Responsibility to
Employees, Depositors & Shareholders

• Expense Control - Before it Became Popular

– No Executive Cars

– Annual Report Cost Reduction

• Bonus Plans Aligned with Shareholders

– We Pay Shareholders First

– No bonuses if earnings fall below a multiple of 1.5 x
dividends plus holding company fixed costs

• People First Location Second

• Benchmarking Best Practices

Stable Performance & Growth

• Earnings Growth for Ten Consecutive Years

• Diversified Revenue Streams

• Efficient Operations

• Lake Michigan Corridor Primed for Growth

• Super Regional Banks Cutting Back - Market Share
Opportunities

• Opportunities Increasing for Healthy Banks

American Trust & Savings
Acquisition

• Purchase & Assumption

– Assets ≈ $110 million

– Deposits ≈ $99 million

• Financial

– Accretive to earnings

– Payback is less than three years

– Low risk - asset quality and core deposits

	Horizon Bancorp	Avg. - Indiana Banks
Dividend Yield (as of 03/12/10)	3.62%	2.1%
Price to Book (HBNC - Price as of 03/12/10 & Book Value as of Year-end 12/31/10)	68.3%	73.8%
Price to Tangible Book (HBNC - Price as of 03/12/10 & Tangible Book Value as of Year-end 12/31/10)	74.2%	80.2%
Price to Earnings (LTM) (HBNC - Price as of 03/12/10 and 2009 Diluted EPS	7.9x	18.6x

Peer Data Source: KBW Report as of February 26, 2010 Covering Indiana Publicly Traded Banks.

Horizon is an Attractive Value

Horizon Outperforms Bank Index - One Year

Horizon Outperforms Bank Index - Ten Years

Horizon Bancorp (HBNC) 8-KRegulation FD Disclosure