HORIZON BANCORP FORM 10-Q SECURITIES AND EXCHANGE COMMISSION 450 5th Street N.W. Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended JUNE 30, 2002 Commission file number 0-10792 HORIZON BANCORP (Exact name of registrant as specified in its charter) INDIANA 35-1562417 ------- ---------- (State or other jurisdiction of (I.R. S. Employer Identification No.) incorporation or organization) 515 FRANKLIN SQUARE, MICHIGAN CITY, INDIANA 46360 ------------------------------------------- ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (219) 879-0211 -------------- Securities registered pursuant to Section 12(b) of the Act: NONE Securities registered pursuant to Section 12(g) of the Act: COMMON STOCK, NO PAR VALUE (Title of class) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 1,982,700 at July 31, 2002 ------------- PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS HORIZON BANCORP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollar Amounts in Thousands) JUNE 30, DECEMBER 31, 2002 2001 (UNAUDITED) - ---------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $ 43,513 $ 18,608 Interest-bearing demand deposits 129 20 Federal funds sold 17,000 -------------------------------------- Cash and cash equivalents 60,642 18,628 Interest-bearing deposits 251 247 Investment securities, available for sale 120,358 67,338 Loans held for sale 1,541 6,816 Loans, net of allowance for loan losses of $5,779 and $5,410 429,369 461,391 Premises and equipment 15,406 16,197 Federal Reserve and Federal Home Loan Bank stock 7,488 6,738 Interest receivable 3,278 3,209 Other assets 5,773 7,381 -------------------------------------- Total assets $644,106 $587,945 ====================================== LIABILITIES Deposits Noninterest bearing $ 48,384 $ 43,353 Interest bearing 388,248 376,246 -------------------------------------- Total deposits 436,632 419,599 Short-term borrowings 16,696 22,344 Federal Home Loan Bank advances 135,264 105,293 Guaranteed preferred beneficial interests in Horizon Bancorp's subordinated debentures 12,000 Interest payable 712 765 Other liabilities 4,780 5,001 -------------------------------------- Total liabilities 606,084 553,002 -------------------------------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, $.33 1/3 stated value Authorized, 15,000,000 shares Issued, 3,115,284 shares 1,038 1,038 Additional paid-in capital 20,808 20,808 Retained earnings 29,930 28,130 Accumulated other comprehensive income 1,771 430 Less treasury stock, at cost, 1,132,587 and 1,129,587 shares (15,525) (15,463) -------------------------------------- Total stockholders' equity 38,022 34,943 -------------------------------------- Total liabilities and stockholders' equity $644,106 $587,945 ====================================== See notes to consolidated financial statements HORIZON BANCORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollar Amounts in Thousands, Except Per Share Data) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 ------------------------------------------------------------ 2002 2001 2002 2001 - ----------------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Loans receivable $ 8,221 $ 9,293 $ 16,483 $ 18,538 Investment securities: Taxable 1,471 1,143 2,359 2,393 Tax exempt 344 7 470 13 ------------------------------------------------------------ Total interest income 10,036 10,443 19,312 20,944 ------------------------------------------------------------ INTEREST EXPENSE Deposits 2,695 4,353 5,385 9,193 Federal funds purchased and short-term borrowings 74 95 170 216 Federal Home Loan Bank advances 1,657 1,097 2,881 2,148 Subordinated debentures 170 181 ------------------------------------------------------------ Total interest expense 4,596 5,545 8,617 11,557 ------------------------------------------------------------ NET INTEREST INCOME 5,440 4,898 10,695 9,387 Provision for loan losses 375 353 750 705 ------------------------------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 5,065 4,545 9,945 8,682 ------------------------------------------------------------ OTHER INCOME Service charges on deposit accounts 722 552 1,383 1,063 Fiduciary activities 630 701 1,183 1,444 Commission income from insurance agency 159 215 335 469 Income from reinsurance company 8 16 28 43 Gain on sale of loans 453 560 978 1,058 Other income 169 310 466 576 ------------------------------------------------------------ Total other income 2,141 2,354 4,373 4,653 ------------------------------------------------------------ OTHER EXPENSES Salaries and employee benefits 3,103 2,823 6,031 5,556 Net occupancy expenses 399 424 842 889 Data processing and equipment expenses 549 559 1,107 1,076 Other expenses 1,328 1,371 2,662 2,563 ------------------------------------------------------------ Total other expenses 5,379 5,177 10,642 10,084 ------------------------------------------------------------ INCOME BEFORE INCOME TAX AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 1,827 1,722 3,676 3,251 Income tax expense 536 669 1,183 1,260 ------------------------------------------------------------ INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 1,291 2,493 CUMULATIVE EFFECT ON YEARS PRIOR TO 2002 OF A CHANGE IN ACCOUNTING FOR GOODWILL (97) ------------------------------------------------------------ NET INCOME $ 1,291 $ 1,053 $ 2,396 $ 1,991 ============================================================ BASIC AND DILUTED EARNINGS PER SHARE BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $ .65 $ .53 $ 1.26 $ 1.00 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $ .05 ------------------------------------------------------------ BASIC AND DILUTED EARNINGS PER SHARE $ .65 $ .53 $ 1.21 $ 1.00 ============================================================ See notes to consolidated financial statements. HORIZON BANCORP AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (Table Dollar Amounts in Thousands) ADDITIONAL ACCUMULATED OTHER COMMON PAID-IN COMPREHENSIVE RETAINED COMPREHENSIVE TREASURY STOCK CAPITAL INCOME EARNINGS INCOME STOCK TOTAL - ------------------------------------------------------------------------------------------------------------------------------ BALANCES, DECEMBER 31, 2001 $1,038 $20,808 $28,130 $ 430 $(15,463) $34,943 Net income 2,396 2,396 2,396 Other comprehensive income, net of tax Unrealized gains on securities 1,341 1,341 1,341 -------------------- Comprehensive income $ 3,737 ==================== Cash dividends ($.30 per share) (596) (596) Purchase of 3,000 shares of treasury stock (62) (62) ------------------------- ------------------------------------------------------ BALANCES, JUNE 30, 2002 $1,038 $20,808 $29,930 $1,771 $(15,525) $38,022 ========================= ====================================================== See notes to consolidated financial statements. HORIZON BANCORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollar Amounts in Thousands) SIX MONTHS ENDED JUNE 30 ---------------------------------- 2002 2001 - ---------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 2,396 $ 1,991 Adjustments to reconcile net income to net cash provided by operating activities Provision for loan losses 750 705 Depreciation and amortization 734 741 Goodwill impairment 160 Deferred income tax (103) (476) Investment securities amortization (accretion), net (5) Gain on sale of loans (978) (1,058) Proceeds from sales of loans 65,777 58,969 Loans originated for sale (59,524) (62,397) Gain on sale of other real estate owned 100 Deferred loan fees (1) (23) Unearned income (66) (23) Net change in Interest receivable (69) 212 Interest payable (53) 17 Other assets 853 (371) Other liabilities (221) 227 ---------------------------------- Net cash provided (used)by operating activities 9,755 (1,491) ---------------------------------- INVESTING ACTIVITIES Net change in interest-bearing deposits (4) (7) Purchases of securities available for sale (63,261) Proceeds from maturities, calls, and principal repayments of securities available for sale 12,255 10,750 Proceeds from sales of securities available for sale 315 Purchase of Federal Home Loan Bank or Federal Reserve Bank Stock (750) (1) Net change in loans 31,080 (18,882) Recoveries on loans previously charged-off 259 215 Purchases of premises and equipment (182) (168) ---------------------------------- Net cash used by investing activities (20,603) (7,778) ---------------------------------- FINANCING ACTIVITIES Net change in Deposits 17,033 24,727 Short-term borrowings (5,648) (9,184) Federal Home Loan Bank advance 80,164 120,000 Repayment of Federal Home Loan Bank advance (50,029) (115,027) Proceeds from issuance of trust preferred securities 12,000 Dividends paid (596) (584) Purchase of treasury stock (62) (47) ---------------------------------- Net cash provided by financing activities 52,862 19,885 ---------------------------------- NET CHANGE IN CASH AND CASH EQUIVALENT 42,014 10,616 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 18,628 35,051 ---------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 60,642 $45,667 ================================== ADDITIONAL CASH FLOWS INFORMATION Interest paid $ 8,670 $ 11,540 Income tax paid 1,505 1,780 See notes to consolidated financial statements. HORIZON BANCORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Table Dollar Amounts in Thousands) NOTE 1 -- BASIS OF PRESENTATION The accompanying consolidated financial statements include the accounts of Horizon Bancorp (Horizon) and its wholly-owned subsidiaries, Horizon Bank, N.A. (Bank) and HBC Insurance Group, Inc. (Insurance Company) and Horizon Statutory Trust I (Trust). All inter-company balances and transactions have been eliminated. The results of operations for the period ended June 30, 2002 and June 30, 2001 are not necessarily indicative of the operating results for the full year of 2002 or 2001. The accompanying unaudited consolidated financial statements reflect all adjustment 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. Those adjustments consist only of normal recurring adjustments. Certain information and note disclosures normally included in Horizon's annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Horizon's Form 10-K annual report for 2001 filed with the Securities and Exchange Commission. The consolidated balance sheet of Horizon as of December 31, 2001 has been derived from the audited balance sheet of the Horizon as of that date. Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding. All share and per share amounts have been adjusted to give effect for a three for one stock split declared on October 16, 2001. Horizon formed a wholly owned subsidiary in 2002, Horizon Statutory Trust I, for the purpose of participating in a Pooled Trust Preferred Program. See Note 8 for further discussion regarding this program. In 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 142 ("SFAS 142"), "Goodwill and Other Intangible Assets". SFAS 142 no longer permits amortization of goodwill and establishes a new method of testing goodwill for impairment by using a fair-value based approach. Under this statement goodwill is to be evaluated for possible impairment as of January 1, 2002, and periodically thereafter. Horizon adopted SFAS 142 on January 1, 2002. As required by this standard, an initial test for goodwill impairment was performed which compared the fair value of our Insurance Agency (a subsidiary of the Bank) to its net book value. Market values for comparable agencies, as well as other factors, were used as the basis for determining the fair value of the Insurance Agency. As a result of this testing, Horizon recorded an impairment loss on goodwill of $160 thousand ($97 thousand after-tax) as a cumulative effect of change in accounting principle in the first quarter of 2002. HORIZON BANCORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Table Dollar Amounts in Thousands) NOTE 2 -- INVESTMENT SECURITIES 2002 ------------------------------------------------------------------ GROSS GROSS AMORTIZED COST UNREALIZED UNREALIZED FAIR JUNE 30 GAINS LOSSES VALUE - ---------------------------------------------------------------------------------------------------------------------------- Available for sale U. S. Treasury and federal agencies $ 12,810 $ 98 $ 12,908 State and municipal 35,519 811 $(176) 36,154 Federal agency collateralized mortgage obligations 25,398 876 26,274 Federal agency mortgage backed pools 43,906 1,117 (1) 45,022 ------------------------------------------------------------------ Total investment securities $117,633 $ 2,902 $(177) $120,358 ================================================================== 2001 ------------------------------------------------------------------- GROSS GROSS AMORTIZED GAINS UNREALIZED FAIR DECEMBER 31 COST UNREALIZED LOSSES VALUE - ---------------------------------------------------------------------------------------------------------------------------- Available for sale U. S. Treasury and federal agencies $20,255 $ 123 $ (59) $20,319 State and Municipal 15,411 277 (378) 15,310 Federal agency collateralized mortgage obligations 17,150 468 (26) 17,592 Federal agency mortgage backed pools 13,812 310 14,117 ------------------------------------------------------------------- Total investment securities $66,628 $1,178 $(468) $67,338 =================================================================== HORIZON BANCORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Table Dollar Amounts in Thousands) The amortized cost and fair value of securities available for sale at June 30, 2002, 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. AVAILABLE FOR SALE ----------------------------------- AMORTIZED FAIR COST VALUE - ------------------------------------------------------------------------------- Within one year $ 19 $ 19 One to five years 9,386 9,594 Five to ten years 6,825 7,097 After ten years 32,099 32,352 ----------------------------------- 48,329 49,062 Federal agency collateral mortgage 25,398 26,274 Federal agency mortgage backed pools 43,906 45,022 ----------------------------------- $117,633 $120,358 =================================== There were no sales of securities available for sale during the three and six months ending June 30, 2002. Proceeds from sales of securities available for sale during the three and six months ended June 30, 2001 were $315 thousand. There were no gross gains or losses realized on the sales. NOTE 3 -- LOANS JUNE 30, December 31, 2002 2001 - -------------------------------------------------------------------------------- Commercial loans $102,949 $100,912 Mortgage warehouse loans 161,745 205,511 Real estate loans 86,802 80,571 Installment loans 83,652 79,807 ------------------------------------ Total loans $435,148 $466,801 ==================================== NOTE 4 -- ALLOWANCE FOR LOAN LOSSES JUNE 30, December 31, 2002 2001 - -------------------------------------------------------------------------------- Allowance for loan losses Balances, beginning of period $5,410 $4,803 Provision for losses 750 1,505 Recoveries on loans 259 683 Loans charged off (640) (1,581) ------------------------------------ Balances, end of period $5,779 $5,410 ==================================== HORIZON BANCORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Table Dollar Amounts in Thousands) NOTE 5 -- NONPERFORMING ASSETS JUNE 30, December 31 2002 2001 - -------------------------------------------------------------------------------- Nonperforming loans $1,529 $1,900 Other real estate owned 169 538 ------------------------------------ Total nonperforming assets $1,698 $2,438 ==================================== NOTE 6 -- GOODWILL The changes in the carrying amount of goodwill for the six months ended June 30, 2002, were: 2002 -------------------- Balance as of January 1 $1,032 Impairment loss (160) -------------------- Balance as of June 30, 2002 $ 872 ==================== Goodwill impairment testing was performed which compared the fair value of the Insurance Agency reporting unit to its carrying value. Market value multiples for comparable agencies, as well as other factors, were used as the basis for determining the fair value of the Insurance Agency. As a result of this testing, Horizon recorded an impairment loss on goodwill of $160 thousand ($97 thousand after-tax) as a cumulative effect of change in accounting method in the first quarter of 2002. Financial Accounting Standards Board Statement No. 142, Goodwill and Other Intangibles, requires transitional disclosures regarding the change in amortization and other treatment of goodwill and intangible assets for the three and six months ended June 30, 2001, as follows: THREE MONTHS ENDED JUNE 30 2001 - ------------------------------------------------------------------------ Reported net income $1,053 Add back: Goodwill amortization, net of tax 14 -------------------- Adjusted net income $1,067 ==================== SIX MONTHS ENDED JUNE 30 2001 - ------------------------------------------------------------------------ Reported net income $1,991 Add back: Goodwill amortization, net of tax 27 -------------------- Adjusted net income $2,018 ==================== HORIZON BANCORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Table Dollar Amounts in Thousands) NOTE 7 -- OTHER COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30 2002 - ---------------------------------------------------------------------------------------------------------- Unrealized gains on securities: Unrealized holding gains arising during the period $2,015 Less: reclassification adjustment for gains realized in net income (0) -------------------- Net unrealized gains 2,015 Tax expense 674 -------------------- Other comprehensive income $1,341 ==================== NOTE 8 -- GUARANTEED PREFERRED BENEFICIAL INTERESTS IN HORIZON BANCORP'S SUBORDINATED DEBENTURES In March of 2002, Horizon formed Horizon Statutory Trust I (Trust). The Trust is a statutory business trust and is wholly owned by Horizon. The Trust issued $12 million of Trust Preferred Capital Securities as a participant in a pooled trust preferred securities offering. Horizon issued junior subordinated debentures aggregating $12 million to the Trust. The junior subordinated debentures are the sole assets of the Trust. The junior subordinated debentures and the trust preferred securities pay interest and dividends, respectively, on a quarterly basis. The junior subordinated debentures and the securities bear interest at a rate of 90 day LIBOR plus 3.60% and mature on March 26, 2032 and are non-callable for five years. After that period, the securities may be called at any quarterly interest payment date at par. The Trust Preferred Capital Securities, subject to certain limitations, are included in Tier 1 Capital for regulatory purposes. Dividends on the Trust Preferred Capital Securities are recorded as interest expense. Costs associated with the issuance of the securities totaling $362 thousand were capitalized and are being amortized over the estimated life of the securities. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION The purpose of this discussion is to focus on Horizon's financial condition, changes in financial condition and the results of operations in order to provide a better understanding of the consolidated financial statements included elsewhere herein. This discussion should be read in conjunction with the consolidated financial statements and the related notes. FINANCIAL CONDITION Liquidity - --------- The Bank maintains a stable base of core deposits provided by long standing relationships with consumers and local businesses. These deposits are the principal source of liquidity for Horizon. Other sources of liquidity for Horizon include earnings, loan repayment, investment security sales and maturities, sale of real estate loans and borrowing relationships with correspondent banks, including the Federal Home Loan Bank (FHLB). During the six months ended June 30, 2002, cash and cash equivalents increased by approximately $25 million; primarily the result of several large deposits from municipal entities on the last business day of June. Another source of funds was the proceeds from the issuance of junior subordinated debentures, which closed on the 26th of March. In addition to liquidity provided from the normal operating, funding, and investing activities of Horizon, at June 30, 2002, the Bank has available approximately $62 million in unused credit lines with various money center banks and the FHLB. There have been no other material changes in the liquidity of Horizon from December 31, 2001 to June 30, 2002. Capital Resources - ----------------- The capital resources of Horizon and Bank exceed regulatory capital ratios for "well capitalized" banks at June 30, 2002. Stockholders' equity totaled $38.022 million as of June 30, 2002 compared to $34.943 million as of December 31, 2001. The change in stockholders' equity during the six months ended June 30, 2002 is the result of an increase in the market value of investment securities available for sale accounted for as an increase to stockholders' equity, net of tax, and net income, net of dividends declared. At June 30, 2002, the ratio of stockholders' equity to assets was 5.90% compared to 5.94% at December 31, 2000. In April of 2002, Horizon registered 200,000 shares of stock for a newly adopted dividend reinvestment and stock purchase plan that became available to Horizon's shareholders in May, 2002. The purpose of the dividend reinvestment plan is to provide participating shareholders with a simple and convenient method of investing cash dividends paid by Horizon on its shares of common stock in additional shares of common stock. There have been no other material changes in Horizon's capital resources from December 31, 2001 to June 30, 2002. Material Changes in Financial Condition - June 30, 2002 compared to December 31, - -------------------------------------------------------------------------------- 2001 - ---- Because of the nature of its activities, Horizon is subject to pending and threatened legal actions that arise in the normal course of business. In management's opinion, after consultation with counsel, none of the litigation to which Horizon or any of its subsidiaries is a party will have a material effect on the consolidated financial position or results of operations of Horizon. During first six months of 2002, investment securities increased approximately $53 million. This growth relates directly to the additional regulatory Tier 1 capital raised through the issuance of $12 million of Trust Preferred Securities. To cover the cost of this long-term debt, the Bank borrowed an additional $40 million and invested the proceeds in additional investment securities. The transactions will generate an initial net interest spread of approximately 1.35%. Loans declined by approximately $32 million for the six months ended June, 30, 2002, with a larger decline in mortgage warehouse lending partially offset by growth in other loan categories. The decline in mortgage warehouse loans relates to a general slow down in residential mortgage refinance activity. Deposits grew by approximately $17 million during the first six months of 2002. This growth came primarily at the end of the period and can be attributed to cyclical public fund deposit activity. Horizon continues to monitor funding sources to reduce the cost of funds and maintain adequate liquidity. There have been no other material changes in the financial condition of Horizon from December 31, 2001 to June 30, 2002. RESULTS OF OPERATIONS Material Changes in Results of Operations - June 30, 2002 Compared to June 30, - ------------------------------------------------------------------------------ 2001 - ---- During the six months ended June 30, 2002, net income totaled $2.396 million or $1.21 per share compared to $1.991 million or $1.00 per share for the same period in 2001. Net interest income was $10.695 million for the six months ended June 30, 2002 compared to $9.387 million for the same period 2001. The provision for loan losses totaled $750 thousand for the six months ended June 30, 2002 compared to $705 thousand for the same period in 2001. The allowance for loan losses to total loans is 1.35% at June 30, 2002 compared to 1.15% at December 31, 2001. Total noninterest income for the six months ended June 30, 2002 was $4.373 million compared to $4.653 million for the same period in 2001. Service charge income increased due to a new overdraft privilege product, offered to certain qualified deposit customers. Income from fiduciary activities declined due to a decline in market value of assets under administration. Noninterest expense increased $558 thousand or 5.5% for the six months ended June 30, 2002 compared to the same period in 2001. The increase was caused primarily by increased expense related to Stock Appreciation Rights. There have been no other material changes in the results of operations of Horizon for the six months ending June 30, 2002 and 2001. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Horizon currently does not engage in any derivative or hedging activity. Refer to Horizon's 2001 Form 10-K for analysis of its interest rate sensitivity. Horizon believes there have been no significant changes in its interest rate sensitivity since it was reported in its 2001 Form 10-K. Forward-looking Statements - -------------------------- Certain statements in this section constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Company to differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS - -------------------------- Not Applicable ITEM 2. CHANGES IN SECURITIES - ------------------------------ Not Applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES - ---------------------------------------- Not Applicable ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - ------------------------------------------------------------ (a) The Company held its Annual Shareholders' Meeting on May 9, 2002. (b) The names of the Directors elected at the Annual Meeting were as follows: NAME VOTES FOR VOTES WITHHELD ---- --------- -------------- Charley Gillispie 1,541,976 11,314 Peter L. Pairitz 1,531,701 21,589 Dale W. Alspaugh 1,531,335 21,955 Craig M. Dwight 1,517,837 35,453 Robert E. Mc Bride 1,518,651 34,639 Gene L. Rice 1,537,574 15,716 The names of the Directors whose term of office continued after the Annual Meeting are as follows: Susan D. Aaron Larry N. Middleton, Jr. Robert E. Swinehart Robert E. Dabagia Bruce E. Rampage Spero W. Valavanis ITEM 5. OTHER INFORMATION - -------------------------- Not Applicable ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K - ---------------------------------------- (a) EXHIBITS Exhibit 3. Amended and Restated Bylaws of the Registrant as amended March 19, 2002. Exhibit 11. Statement Regarding Computation of Per Share Earnings Exhibit 99.1 Certification of Chief Executive and Chief financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (b) REPORTS ON FORM 8-K - No reports on Form 8-K were filed during the three months ended June 30, 2002 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HORIZON BANCORP August 6, 2002 /s/ Craig M. Dwight - ---------------------------- -------------------------------------------- Date: BY: Craig M. Dwight President and Chief Executive Officer Auguts 6, 2002 /s/ James H. Foglesong - ---------------------------- -------------------------------------------- Date: BY: James H. Foglesong Chief Financial Officer INDEX TO EXHIBITS The following documents are filed as Exhibits to this Report. Exhibit - ------- 3 Amended and Restated Bylaws of the Registrant as amended March 19, 2002. 11 Statement Regarding Computation of Per Share Earnings 99.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.