Published: January 21, 2010

Horizon Bancorp Announces Record Earnings for 2009

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MICHIGAN CITY, Ind. - (BUSINESS WIRE) - Horizon Bancorp (NASDAQ: HBNC) today announced its unaudited financial results for the three and twelve months ended December 31, 2009.

SUMMARY:

Horizon's net income for the year ending December 31, 2009 was $9.14 million, which exceeded the net income from 2008 of $8.97 million and represents Horizon's tenth consecutive year of record earnings.
Horizon's fourth quarter 2009 net income was $2.08 million or $0.53 diluted earnings per share.
Net interest margin for the fourth quarter increased compared to the prior two quarters.
Horizon continued to experience steady residential mortgage loan volume through the fourth quarter.
Horizon's quarterly provision to the allowance for loan loss reserve increased by approximately $300,000 from the third quarter of 2009 increasing the ratio of allowance for loan losses to total loans to 1.80%.
Horizon's net loans charged off during the fourth quarter were less than the net loans charged off in each of the previous three quarters of 2009.
Horizon's balance of Other Real Estate Owned of $1.7 million at December 31, 2009 was at its lowest level compared to the balance at the end of the previous three quarters in 2009.
Horizon's non-performing loans increased by $672,000 from September 30, 2009 to December 31, 2009.
Horizon's non-performing loans to total loans ratio as of December 31, 2009 was 1.92%, which compares favorably to National and State of Indiana peer averages¹ of 4.48% and 2.71% of total loans as of September 30, 2009.
Horizon's capital ratios continue to be above the regulatory standards for well-capitalized banks.
At the end of the fourth quarter of 2009, Horizon announced the purchase of substantially all of the banking-related assets and assumption of all the deposits and certain other liabilities of American Trust & Savings Bank located in Whiting, Indiana.

Craig M. Dwight, Chief Executive Officer of Horizon Bancorp stated, "We are extremely pleased with Horizon's performance in 2009, especially given the current economic environment, the increase in credit costs and the increase in FDIC insurance premiums." Mr. Dwight further commented, "Horizon's talented team was able to achieve record earnings for the tenth consecutive year, due to hard work, investing our resources in counter cyclical business lines and preparing for the future." In addition, Mr. Dwight stated, "The future looks very promising for well run and profitable banks. Horizon is well positioned to capitalize on these opportunities." In conclusion, Mr. Dwight stated, "Horizon is safe, strong and still growing."

Performance Highlights:

Net income for the fourth quarter 2009 was $2.08 million or $.53 diluted earnings per share. This compares to $2.12 million or $.64 diluted earnings per share for the same quarter of the prior year. Net income for the twelve months ended December 31, 2009 was $9.14 million or $2.37 diluted earnings per share. This compares to $8.97 million or $2.75 diluted earnings per share for the same period of the prior year.

Diluted earnings per share were reduced by $.11 for the three months and $.43 for the twelve months ending December 31, 2009 resulting from the preferred stock dividends and the accretion of the discount on the preferred stock. The preferred stock was issued late in the fourth quarter 2008 and therefore did not significantly impact diluted earnings per share for the three or twelve month periods ending December 31, 2008.

Net interest income increased $1.7 million for the three months and $7.4 million for the twelve months ending December 31, 2009 compared to the same prior year periods. This was primarily due to an increase in interest earning assets and a decrease in the cost of funds. The net interest margin increased to 3.66% for the twelve months ending December 31, 2009 compared to 3.45% in the prior year for the same period and the fourth quarter net interest margin increased to 3.76% from 3.65% in the prior year.

The improvement in year-to-date net interest income over the same period of the prior year is a result of Horizon's ability to reduce the cost of interest bearing liabilities more than the reduction in the yields experienced on the interest earning assets. In addition, interest rate floors on over 50.0% of the Company's adjustable rate loans have helped in maintaining the yield on interest earning assets.

The provision for loan losses was $3.7 million for three months ending December 31, 2009 compared to $2.2 million for the same period the prior year. The fourth quarter provision is slightly increased from the $3.2 million, $3.3 million, and $3.4 million in reserves taken in the first, second, and third quarters of 2009. Consumer loan charge-offs continue to require quarterly provisions for loan losses but appear to be stabilizing as the amount of consumer charge-offs have been decreasing over the last three quarters. However, the increase in non-performing loans required additional provision expense for loan losses as specific reserves were identified for these loans.

Non-performing loans at December 31, 2009 totaled $17.1 million which was 1.92% of total loans. This is an increase from a balance of $16.5 million on September 30, 2009, or 1.87% of total loans, and an increase from a balance of $7.9 million on December 31, 2008, which was 0.89% of total loans. Horizon's non-performing loan statistics, while having increased from the prior quarter, still compare favorably to National and State of Indiana¹ peer bank averages of 4.48% and 2.71% of total loans as of September 30, 2009.

The increase in non-performing loans over the past quarter is due to an increase of consumer installment borrowers under Chapter 13 bankruptcy repayment plans. The majority of consumer installment borrowers under Chapter 13 repayment plans are paying as agreed, but these loans remain on non-accrual status until six payments are made under the plan. Because of the time it takes for repayment plans to be approved and the six payments to be made, the level of non-performing consumer installment loans have increased as the level of charge-offs in the consumer portfolio has decreased. The increase in the Company's non-performing loans over the past year can be attributed to the slower economy and continued high local unemployment causing lower business revenues and increased consumer bankruptcies.

Non-accrual loans totaled $15.4 million on December 31, 2009, down slightly from $15.5 million on September 30, 2009, but up from $7.0 million on December 31, 2008. The decrease in the quarter ended December 31, 2009 was primarily due to a lower level of commercial loan non-accruals mostly offset by an increase in consumer loan non-accruals. Commercial loan non-accruals decreased from $9.2 million on September 30, 2009 to $8.1 million on December 31, 2009. During the quarter two loans to one borrower were written down by $535,000, one loan totaling $527,000 that was secured by 18 residential properties was transferred to Other Real Estate Owned ("OREO" ) and two loans totaling $441,000 were paid off. Only one commercial loan totaling $320,000 was added to non-accrual during the quarter. Non-accrual loans to restaurant operators totaled $2.6 million at December 31, 2009, the same as the previous quarter. Nonaccrual loans to home builders and land developers totaled $2.2 million on December 31, 2009, down from $2.7 million on September 30, 2009. Mortgage loans on non-accrual totaled $4.6 million at December 31, 2009, the same as at September 30, 2009. Consumer loans on non-accrual increased from $1.8 million to $2.7 million during the quarter primarily due to an increase in the number of consumer bankruptcy filings.

Loans 90 days delinquent but still accruing interest totaled $1.7 million on December 31, 2009, up from $856,000 on September 30, 2009, and $833,000 on December 31, 2008. One commercial loan totaling $925,000 secured by a commercial mixed-use building and one real estate development loan totaling $110,000 caused the increase. Subsequent to December 31, 2009, the $925,000 loan was brought current and renewed for a six-month term. Horizon's policy is to place loans over 90 days delinquent on non-accrual unless they are in the process of collection and a full recovery is expected.

OREO totaled $1.7 million on December 31, 2009, the same as September 30, 2009 and down from $2.9 million on December 31, 2008. During the current quarter, six properties with a book value of $563,000 (as of September 30, 2009) were sold. Also during the quarter, 19 properties with a book value of $540,000 (as of December 31, 2009) were transferred to OREO. On December 31, 2009, OREO was comprised of 32 properties. Of these, 31 totaling $1.6 million were residential, and the balance was commercial real estate. Repossessed property totaled $23,000 on December 31, 2009, down from $142,000 on September 30, 2009. Repossessed property consists primarily of vehicles.

No mortgage warehouse loans were non-performing or OREO as of December 31, 2009, September 30, 2009, or December 31, 2008.

The residential mortgage loan activity continued to be steady through the fourth quarter as evidenced by volumes higher than the prior year in both the conventional residential mortgage and mortgage warehouse business lines. Conventional residential mortgage refinancing activity has increased the gain on sale of loans by $3.1 million for the twelve months ending December 31, 2009 when compared to the same period in the prior year.

Salaries and benefits increased $2.5 million for the twelve months ended December 31, 2009 compared to the prior year primarily due to branch expansion, annual merit increases, and commissions paid to the mortgage loan division as the primary cost to originate residential mortgage loans is the commissions paid to mortgage originators.

FDIC expense for the twelve months ended December 31, 2009 totaled $2.1 million compared to the prior year of $546,000, an increase of $1.6 million. The increase in FDIC insurance premiums was due to higher assessment rates and a special assessment paid in 2009.

A gain on the sale of securities of $373,000 was realized during the fourth quarter as our analysis determined that market conditions provided the opportunity to add these gains to capital without a negative impact to long term earnings. In addition, the securities sold were experiencing a higher repayment speeds due to the low interest rate environment.

Other items

On December 29, 2009 Horizon announced the signing of a definitive agreement to purchase substantially all of the banking-related assets and assume all deposits and certain other liabilities of American Trust & Savings Bank ("American" ) headquartered in Whiting, Indiana and its parent company Am Tru, Inc. ("Am Tru" ).

Under the terms of the agreement Horizon will purchase most of the banking-related assets of American (with an estimated value of approximately $110.0 million) and will assume all the deposits, federal home loan bank advances, and accrued interest payable in the approximate amount of $112.0 million. In addition, Horizon will pay a three percent premium on core deposits estimated to be $2.1 million and $500,000 in additional consideration. Horizon will not be purchasing approximately $12.0 million of loan participations owned by American or assuming any contingent liabilities. All values are approximate and based upon September 30, 2009 information and financial results. This transaction is subject to approval by the shareholders of American and Am Tru and bank regulators. This transaction is expected to close in the second quarter of 2010.

Horizon Bancorp is a locally owned, independent, commercial bank holding company serving Northern Indiana and Southwest Michigan. Horizon also offers mortgage-banking services throughout the Midwest. Horizon Bancorp may be reached online at www.accesshorizon.com. Its common stock is traded on the NASDAQ Global Market under the symbol HBNC.

Statements in this press release which express "belief," "intention," "expectation," and similar expressions, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to, such management. Such statements are inherently uncertain and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those contemplated by the forward-looking statements. Any forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

¹ National peer group: Consists of all insured commercial banks having assets between $1 Billion and $10 Billion as reported by the Uniform Bank Performance Report as of September 30, 2009. Indiana peer group: Consists of 18 publicly traded banks all headquartered in the State of Indiana as reported by the Uniform Bank Performance Reports as of September 30, 2009.

HORIZON BANCORP Financial Highlights (Dollars in thousands except share and per share data and ratios, Unaudited)

	December 31			September 30			June 30			March 31			December 31
	2009			2009			2009			2009			2008
Balance sheet:
Total assets	$	1,387,020		$	1,321,224		$	1,343,296		$	1,442,851		$	1,306,857
Short term investments		4,783			4,464			10,418			6,444			2,679
Investment securities		344,789			333,031			331,941			327,289			303,268
Commercial loans		314,517			312,573			313,857			313,840			310,842
Mortgage warehouse loans		166,698			145,270			163,083			186,058			123,287
Residential mortgage loans		133,892			142,568			146,096			160,478			167,766
Installment loans		271,210			275,299			272,394			273,728			280,072
Earning assets		1,254,781			1,232,549			1,260,807			1,288,214			1,206,494
Non-interest bearing deposit accounts		84,357			87,725			83,940			81,000			83,642
Interest bearing transaction accounts		540,647			375,548			388,954			489,699			428,931
Time deposits		326,704			394,724			375,256			406,790			328,596
Borrowings		284,016			311,884			349,499			320,956			324,383
Long-term borrowings		27,837			27,837			27,837			27,837			27,837
Common stockholders' equity		90,299			89,566			82,965			82,236			79,196
Total stockholders' equity		114,605			113,833			107,194			106,427			103,350

Income statement:	Three months ended
Net interest income	$	11,371		$	10,719		$	11,263		$	11,416		$	9,689
Provision for loan losses		3,700			3,416			3,290			3,197			2,163
Other income		4,304			4,542			4,516			4,494			3,369
Other expenses		9,558			8,929			9,928			9,397			8,230
Income tax expense		333			559			497			681			543
Net income		2,084			2,357			2,064			2,635			2,122
Preferred stock dividend		(351	)		(351	)		(350	)		(350	)		(45	)
Net income available to common shareholders		1,733			2,006			1,714			2,285			2,077

Per share data:
Basic earnings per share	$	0.53		$	0.62		$	0.53		$	0.71		$	0.64
Diluted earnings per share		0.53			0.61			0.52			0.70			0.64
Cash dividends declared per common share		0.17			0.17			0.17			0.17			0.17
Book value per common share		27.67			27.46			25.85			25.62			24.68
Tangible book value per common share		25.45			25.22			23.55			23.30			22.33
Market value - high	$	17.25		$	17.50		$	19.45		$	13.21		$	24.52
Market value - low	$	14.31		$	15.00		$	11.00		$	10.50		$	12.29
Basic common shares outstanding		3,262,927			3,245,505			3,209,482			3,209,482			3,209,482
Diluted common shares outstanding		3,275,588			3,273,742			3,270,178			3,250,424			3,246,664

Key ratios:
Return on average assets		0.62	%		0.72	%		0.59	%		0.79	%		0.71	%
Return on average common stockholders' equity		7.56			9.12			8.01			11.18			10.86
Net interest margin		3.76			3.64			3.51			3.78			3.65
Loan loss reserve to total loans		1.80			1.58			1.40			1.23			1.29
Non-performing loans to loans		1.92			1.87			1.49			1.11			0.89
Average equity to average assets		8.61			8.53			7.80			7.94			6.72
Bank only capital ratios:
Tier 1 capital to average assets		8.64			8.79			8.22			8.51			9.44
Tier 1 capital to risk weighted assets		11.79			12.04			11.93			11.45			11.89
Total capital to risk weighted assets		13.04			13.29			13.19			12.61			13.11

HORIZON BANCORP Financial Highlights (Dollars in thousands except share and per share data and ratios, Unaudited)

	December 31			December 31
	2009			2008
Balance sheet:
Total assets	$	1,387,020		$	1,306,857
Short term investments		4,783			2,679
Investment securities		344,789			303,268
Commercial loans		314,517			310,842
Mortgage warehouse loans		166,698			123,287
Residential mortgage loans		133,892			167,766
Installment loans		271,210			280,072
Earning assets		1,254,781			1,206,494
Non-interest bearing deposit accounts		84,357			83,642
Interest bearing transaction accounts		540,647			428,931
Time deposits		326,704			328,596
Borrowings		284,016			324,383
Long-term borrowings		27,837			27,837
Common stockholders' equity		90,299			79,196
Total stockholders' equity		114,605			103,350

Income statement:	Twelve months ended
Net interest income	$	44,769		$	37,350
Provision for loan losses		13,603			7,568
Other income		17,856			13,831
Other expenses		37,812			32,779
Income tax expense		2,070			1,862
Net income		9,140			8,972
Preferred stock dividend		(1,402	)		(45	)
Net income available to common shareholders		7,738			8,927

Per share data:
Basic earnings per share	$	2.39		$	2.78
Diluted earnings per share		2.37			2.75
Cash dividends declared per common share		0.68			0.66
Book value per common share		27.67			24.68
Tangible book value per common share		25.45			22.33
Market value - high	$	19.45		$	25.73
Market value - low	$	10.50		$	12.29
Basic common shares outstanding		3,232,033			3,208,658
Diluted common shares outstanding		3,270,723			3,246,351

Key ratios:
Return on average assets		0.68	%		0.75	%
Return on average common stockholders' equity		8.92			11.81
Net interest margin		3.66	%		3.45	%
Loan loss reserve to total loans		1.80			1.29
Non-performing loans to loans		1.92			0.89
Average equity to average assets		8.21			6.36
Bank only capital ratios:
Tier 1 capital to average assets		8.64			9.44
Tier 1 capital to risk weighted assets		11.79			11.89
Total capital to risk weighted assets		13.04			13.11

HORIZON BANCORP Allocation of the Allowance for Loan and Lease Losses (Dollars in Thousands, Unaudited)

	December 31 2009		September 30 2009		June 30 2009		March 31 2009		December 31 2008
Commercial	$	5,766	$	4,699	$	3,076	$	2,441	$	3,202
Real estate		1,933		1,599		1,511		1,038		973
Mortgage warehousing		1,455		1,480		1,453		1,428		1,354
Installment		6,861		6,146		6,609		6,682		5,881
Unallocated		-		-		-		-		-
Total	$	16,015	$	13,924	$	12,649	$	11,589	$	11,410

Net Charge-offs (Dollars in Thousands, Unaudited)

	Three months ended
	December 31 2009		September 30 2009		June 30 2009		March 31 2009		December 31 2008
Commercial	$	527	$	530	$	262	$	1,076	$	(5	)
Real estate		146		22		214		50		26
Mortgage warehousing		-		-		-		-		-
Installment		936		1,589		1,754		1,892		1,257
Total	$	1,609	$	2,141	$	2,230	$	3,018	$	1,278

Total Non-performing Loans (Dollars in Thousands, Unaudited)

	December 31 2009		September 30 2009		June 30 2009		March 31 2009		December 31 2008
Commercial	$	9,229	$	9,235	$	7,959	$	6,474	$	5,167
Real estate		4,819		4,926		3,764		2,446		1,904
Mortgage warehousing		-		-		-		-		-
Installment		3,097		2,312		1,754		1,549		792
Total	$	17,145	$	16,473	$	13,477	$	10,469	$	7,863

Other Real Estate Owned and Repossessed Assets (Dollars in Thousands, Unaudited)

	December 31 2009		September 30 2009		June 30 2009		March 31 2009		December 31 2008
Commercial	$	-	$	-	$	-	$	-	$	-
Real estate		1,730		1,671		2,212		2,492		2,874
Mortgage warehousing		-		-		-		-		-
Installment		23		142		115		204		207
Total	$	1,753	$	1,813	$	2,327	$	2,696	$	3,081

HORIZON BANCORP Loan Portfolio Detail

December 31, 2009 (Unaudited)	Loan Balance			Non- Performing Loans		Percent of Loans		Specific Reserves on Non- Performing Loans		Percent of Non-performing Loans
Owner occupied real estate	$	138,999		$	3,152	2.27	%		700	22.21	%
Non owner occupied real estate		100,502			1,677	1.67	%		125	7.45	%
Residential development		16,101			2,343	14.55	%		125	5.34	%
Commercial and industrial		58,915			2,057	3.49	%		725	35.25	%
Total commercial		314,517			9,229	2.93	%		1,675	18.15	%

Residential mortgage		126,469			4,638	3.67	%		441	9.51	%
Residential construction		7,423			181	2.43	%		71	39.29	%
Mortgage warehouse		166,698			-	0.00	%		-	0.00	%
Total mortgage		300,590			4,819	1.60	%		512	10.62	%

Direct installment		24,908			387	1.55	%		-	0.00	%
Indirect installment		136,600			1,089	0.80	%		95	8.72	%
Home equity		109,702			1,621	1.48	%		1,188	73.29	%
Total installment		271,210			3,097	1.14	%		1,283	41.43	%

Total loans		886,317			17,145	1.93	%		3,470	20.24	%
Allowance for loan losses		(16,015	)
Net loans	$	870,302		$	17,145	1.97	%	$	3,470	20.24	%

HORIZON BANCORP AND SUBSIDIARIES Average Balance Sheets (Dollar Amounts in Thousands, Unaudited)

			Three Months Ended							Three Months Ended
			December 31, 2009							December 31, 2008
			Average					Average		Average					Average
			Balance			Interest		Rate		Balance			Interest		Rate

ASSETS
Interest-earning assets
	Federal funds sold		$	19,331		$	12	0.25	%	$	7,611		$	9	0.47	%
	Interest-earning deposits			8,111			5	0.24	%		5,280			8	0.60	%
	Investment securities - taxable			250,223			2,535	4.02	%		174,806			2,160	4.92	%
	Investment securities - non-taxable (1)			107,980			1,060	5.90	%		78,209			833	6.42	%
	Loans receivable (2)			873,293			14,043	6.39	%		838,168			14,038	6.67	%
		Total interest-earning assets (1)		1,258,938			17,655	5.74	%		1,104,074			17,048	6.31	%

Noninterest-earning assets
	Cash and due from banks			15,267							17,494
	Allowance for loan losses			(14,229	)						(10,578	)
	Other assets			78,634							73,732

			$	1,338,610						$	1,184,722

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities
	Interest-bearing deposits		$	808,363		$	3,275	1.61	%	$	694,247		$	3,984	2.28	%
	Borrowings			288,684			2,685	3.69	%		295,410			2,990	4.03	%
	Subordinated debentures			27,837			324	4.62	%		27,837			385	5.50	%
		Total interest-bearing liabilities		1,124,884			6,284	2.22	%		1,017,494			7,359	2.88	%

Noninterest-bearing liabilities
	Demand deposits			89,137							79,567
	Accrued interest payable and other liabilities
	Accrued interest payable and other liabilities			9,322							8,056
Shareholders' equity				115,267							79,605

			$	1,338,610						$	1,184,722

Net interest income/spread						$	11,371	3.52	%				$	9,689	3.43	%

Net interest income as a percent of average interest earning assets (1)
								3.76	%						3.65	%

(1)				Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
(2)				Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.

HORIZON BANCORP AND SUBSIDIARIES Average Balance Sheets (Dollar Amounts in Thousands, Unaudited)

			Twelve Months Ended							Twelve Months Ended
			December 31, 2009							December 31, 2008
			Average					Average		Average					Average
			Balance			Interest		Rate		Balance			Interest		Rate

ASSETS
Interest-earning assets
	Federal funds sold		$	25,551		$	56	0.22	%	$	17,040		$	443	2.60	%
	Interest-earning deposits			7,170			16	0.22	%		6,430			148	2.30	%
	Investment securities - taxable			247,903			10,813	4.36	%		174,427			8,520	4.88	%
	Investment securities - non-taxable (1)			97,913			3,942	5.75	%		80,151			3,323	5.92	%
	Loans receivable (2)			892,431			57,836	6.49	%		848,279			57,801	6.82	%
		Total interest-earning assets (1)		1,270,968			72,663	5.85	%		1,126,327			70,235	6.37	%

Noninterest-earning assets
	Cash and due from banks			15,344							17,397
	Allowance for loan losses			(12,372	)						(9,930	)
	Other assets			77,215							69,769

			$	1,351,155						$	1,203,563

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities
	Interest-bearing deposits		$	800,255		$	14,792	1.85	%	$	733,868		$	19,536	2.66	%
	Borrowings			318,661			11,696	3.67	%		280,766			11,772	4.19	%
	Subordinated debentures			27,837			1,406	5.05	%		27,837			1,577	5.67	%
		Total interest-bearing liabilities		1,146,753			27,894	2.43	%		1,042,471			32,885	3.15	%

Noninterest-bearing liabilities
	Demand deposits			84,209							77,600
	Accrued interest payable and other liabilities
	Accrued interest payable and other liabilities			9,215							7,001
Shareholders' equity				110,978							76,491

			$	1,351,155						$	1,203,563

Net interest income/spread						$	44,769	3.42	%				$	37,350	3.21	%

Net interest income as a percent of average interest earning assets (1)
								3.66	%						3.45	%

(1)		Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
(2)		Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.

HORIZON BANCORP AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Dollar Amounts in Thousands)

	December 31		December 31
	2009		2008
	(Unaudited)
Assets
Cash and due from banks	$	63,919	$	36,001
Interest-bearing deposits		4,783		2,679
Investment securities, available for sale		333,132		301,638
Investment securities, held to maturity		11,657		1,630
Loans held for sale		5,703		5,955
Loans, net of allowance for loan losses of $16,015 and $11,410		870,302		870,557
Premises and equipment		30,534		28,280
Federal Reserve and Federal Home Loan Bank stock		13,189		12,625
Goodwill		5,787		5,787
Other intangible assets		1,447		1,751
Interest receivable		5,986		5,708
Cash value life insurance		23,139		22,451
Other assets		17,442		11,795
Total assets	$	1,387,020	$	1,306,857
Liabilities
Deposits
Non-interest bearing	$	84,357	$	83,642
Interest bearing		867,351		757,527
Total deposits		951,708		841,169
Borrowings		284,016		324,383
Subordinated debentures		27,837		27,837
Interest payable		1,135		1,910
Other liabilities		7,719		8,208
Total liabilities		1,272,415		1,203,507
Commitments and contingent liabilities
Stockholders' Equity
Preferred stock, no par value, $1,000 liquidation value
Authorized, 1,000,000 shares
Issued 25,000 shares
Common stock, $.2222 stated value		24,306		24,154
Authorized, 22,500,000 shares
Issued, 3,273,881 and 3,254,482 shares		1,119		1,114
Additional paid-in capital		10,030		9,650
Retained earnings		73,431		67,804
Accumulated other comprehensive income		5,719		628
Total stockholders' equity		114,605		103,350
Total liabilities and stockholders' equity	$	1,387,020	$	1,306,857

HORIZON BANCORP AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollar Amounts in Thousands, Except Per Share Data)

	Three Months Ended						Years Ended
	December 31						December 31
	(Unaudited)						(Unaudited)
	2009			2008			2009			2008
Interest Income
Loans receivable	$	14,043		$	14,038		$	57,836		$	57,801
Investment securities
Taxable		2,552			2,177			10,885			9,111
Tax exempt		1,060			833			3,942			3,323
Total interest income		17,655			17,048			72,663			70,235
Interest Expense
Deposits		3,275			3,984			14,792			19,536
Borrowed funds		2,685			2,990			11,696			11,772
Subordinated debentures		324			385			1,406			1,577
Total interest expense		6,284			7,359			27,894			32,885
Net Interest Income		11,371			9,689			44,769			37,350
Provision for loan losses		3,700			2,163			13,603			7,568
Net Interest Income after Provision for Loan Losses		7,671			7,526			31,166			29,782
Other Income
Service charges on deposit accounts		978			910			3,858			3,885
Wire transfer fees		212			146			921			528
Interchange fees		506			228			1,864			846
Fiduciary activities		850			896			3,336			3,713
Gain (loss) on sale of securities		373			-			795			(15	)
Gain on sale of mortgage loans		1,246			857			6,107			2,979
Mortgage servicing net of impairment		(3	)		12			(134	)		20
Increase in cash surrender value of bank owned life insurance		173			219			720			920
Death benefit on officer life insurance		-			-			-			538
Other income		(31	)		101			389			417
Total other income		4,304			3,369			17,856			13,831
Other Expenses
Salaries and employee benefits		4,940			4,051			19,204			16,749
Net occupancy expenses		924			941			3,796			3,775
Data processing		388			364			1,582			1,437
Professional fees		392			330			1,413			1,133
Outside services and consultants		428			373			1,471			1,313
Loan expense		770			620			2,611			2,223
FDIC insurance expense		375			142			2,126			546
Other losses		68			146			510			413
Other expenses		1,273			1,263			5,099			5,190
Total other expenses		9,558			8,230			37,812			32,779
Income Before Income Tax		2,417			2,665			11,210			10,834
Income tax expense		333			543			2,070			1,862
Net Income		2,084			2,122			9,140			8,972
Preferred stock dividend and discount accretion		(351	)		(45	)		(1,402	)		(45	)
Net Income Available to Common Shareholders	$	1,733		$	2,077		$	7,738		$	8,927
Basic Earnings Per Share	$	0.53		$	0.64		$	2.39		$	2.78
Diluted Earnings Per Share		0.53			0.64			2.37			2.75

Horizon Bancorp
Mark E. Secor, Chief Financial Officer, 219-873-2611
Fax: 219-874-9280

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Horizon Bancorp Announces Record Earnings for 2009

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