Values, Earnings

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A NASDAQ Traded Company - Symbol HBNC
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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.

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Corporate Profile

• Symbol HBNC
• Shares Outstanding 3.3 Million Shares
• Market Cap 72 Million
• Total Assets 1.2 Billion
• Ownership
• Insiders 8.6
• ESOP 14.0
• Institutional 23.4

Based on price at the close of business on
August 14, 2008 at 22 per share Total assets
as of June 30, 2008
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(No Transcript)
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Current Locations
Porter County
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Regional Insight
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Indiana Financial Institutions

• Stock Performance LTM
• First Merchants 4
• German American ( 4)
• Lake City ( 9)
• 1st Source (12)
• Mainsource (13)
• Indiana Community (51)
• Horizon (23)

• Change in Earnings
• 5
• 49
• 0
• 0
• 9
• (39)
• 43

Publicly traded banks in the State of
Indiana with more than 900 million in assets and
less than 5 billion Reflects the percent
change in stock price from July 2007 to July
2008, source NASDAQ


Reflects the change in earnings from first
six months 2007 to same time period 2008, per
earnings press releases
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Michigan Financial Institutions

• Stock Performance LTM
• Chemical 22
• Macatawa (19)
• Citizens First (19)
• Mercantile (57)
• Independent Bank (58)
• Monroe Bank (62)
• Horizon (23)

• Change in Earnings - YTD
• 4
• ( 51)
• (155)
• (198)
• ( 12)
• ( 40)
• 43

Publicly traded banks in the State of
Michigan with more than 1 billion in assets and
less than 4 billion Reflects the percent
change in stock price from July 2007 to July
2008, source NASDAQ Reflects the change in
earnings from first six months 2007 to same time
period 2008, per earnings press releases
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Michigan 8.5 (1) Berrien County 8
Source Bureau of Labor Statistics
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(1) (2) ( 3) (4) (5)
Indiana 5.8 Counties (1) Lake
6.1 (2) Porter 4.7 (3) LaPorte 5.8 (4)
St. Joe 6.3 (5) Elkhart 7.0
Source Bureau of Labor Statistics
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Indiana is a Great State

• Indiana
• Balanced budget
• Fully funded capital improvement plan
• BP Expansion plan Lake County, Indiana
• Steel Industry solid earnings, low percent of
  employment base
• Low Unemployment 5.8
• Illinois
• Budget deficits
• High income, sales and property taxes
• High unemployment 6.8
• Michigan
• Budget deficits
• High income and unemployment taxes
• High unemployment 8.5

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Financial Highlights
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Financial Summary June 30, 2008 vs. June 30, 2007

• Increase Change
• 2.58 6.45
• 1.25 21.49
• 1.68 284.40
• 0.437 2.76
• 1.66 42.95

• Income Statement
• Net Interest Margin
• (Increase of 40 basis points)
• Non-Interest Income
• (Trust Deposit Fees)
• Provision for Loan Losses (2007 was very low
  at .590 or 0.1 of total loans)
• Other Non-Interest Expense (Relates primarily to
  collection expenses, other losses, branch
  expansion)
• Net Income

Increase is in millions of dollars and
reflects the change from first six months 2008
over the same time period 2007. The percent
change compares the change in actual dollars for
the same six month time periods.
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Net Income
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Earnings Per Share
CAGR 10.72
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Quarterly Earnings
Thousands
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Horizons Efficiency Ratio
Data Source KBW Indiana Publicly Traded Banks
as of 6-30-08 for all periods reviewed. Actual
results for the first six months of 2008.
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Asset Mix
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Total Assets
CAGR 11.4

As of June 30, 2008
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Comparative Loan Mix
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Commercial Loans Outstanding by Type June 30, 2008
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Consumer Loans Outstanding by Type June 30, 2008
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Asset Quality
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Loan Charge-Offs by Type
Thousands
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Consumer Indirect Credit Score Review

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Home Equity Credit Score Review
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Non-Performing Loans Plus OREO to Gross
Loans Plus OREO
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Annualized Net Loan Losses to Average Total Loans
Source Custom group of 23 publicly traded banks
headquartered in the state of Indiana from FDIC
Uniform Bank Performance Reports
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Consumer Indirect Installment Delinquency
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Consumer Indirect Installment Net Charge-Offs
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Consumer Home Equity Installment Delinquency
Horizons data includes other direct installment
loans, but, Home Equity portion of direct
portfolio is 57 Source ABA Consumer Credit
Delinquency Bulletin
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Consumer Home Equity Installment Net
Charge-Offs
Horizons data includes other direct installment
loans, but, Home Equity portion of direct
portfolio is 57 Source ABA Consumer Credit
Delinquency Bulletin Actual Net Charge-Offs for
each quarter are annualized and expressed as a
percentage of average home equity installment
loans outstanding
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Why Consider Horizon?
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Why Horizon?

• History of Growth in Earnings Per Share
• History of Asset Quality Better than Peer
• Lake Michigan Corridor Primed for Growth
• Market Opportunities
• Indiana Great State for Business

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Comparative Stock Performance - 10 Years
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A NASDAQ Traded Company - Symbol HBNC