Horizon Bancorp, Inc.

and you.

Good morning, everyone, and welcome to the Horizon Bancorp conference call to discuss financial results for the three months ended March 31, 2020. Before turning the call over to management, I would like to remind everyone that today's call may contain forward-looking statements related to Horizon that may generally be identified as describing a company's future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect Horizon's future results, please see the company's most recent annual and quarterly reports filed on Forms 10-K and 10-Q. You should keep in mind that any forward-looking statements made by Horizon speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and management cannot predict these events or how they may affect the company. Horizon has no duty to and does not intend to update or revise forward-looking statements after the date on which they are made. To the extent non-gap financial measures are discussed on this call, comparable gap measures and reconciliations can be found in Horizon's April 29th news release, which is available on its website at horizonbank.com. Horizon also published an investor presentation on Wednesday afternoon, and it is available on the company website with information that will be addressed this morning. Representing Horizon today is Chairman and CEO Craig Dwight, as well as Executive Vice President and CFO Mark Secor, President Jim Neff, and Executive Vice President and Chief Commercial Banking Officer Dennis Kuhn. At this time, I'd like to turn the conference over to Mr. Dwight.

Thank you, Grant, and good morning. We appreciate the listening audience joining us for Horizon's first earnings call. Horizon was contemplating the initiation of an earnings call in late 2020. However, as you can imagine, the COVID-19 national emergency accelerated our plans. Horizon issued its first quarter earnings release and supplemental deck on Wednesday, April 29th. Our comments today will closely follow the supplemental slide deck. With our focus on Horizon's response to COVID-19, first quarter financial results, and other key areas of operations. At the conclusion of our comments, we'll open up the call for a question and answer session. Now to discuss Horizon's response to COVID-19. You know, this national emergency moved quickly. The first COVID-19 case in the United States was reported on January 20th, and soon thereafter on January 31st. The United States Secretary of Health and Human Services declared a public health emergency. Then on March 13th, the President of the United States declares a national emergency concerning COVID-19. We are now in day 48 of this national emergency. Amazing how fast things have gone. Verizon Bank's team response to this national emergency has been phenomenal. We mobilized our management team in February to review our existing pandemic plan. including preparation for the safety and well-being of our employees, customers, and community. This early review of our pandemic plan helped our managers to better prepare for what was to come. The duty to provide a safe work environment for employees and customers is always paramount in our discussions. On March 12th, we implemented a business travel ban for all employees. Shortly thereafter, on March 19th, we limited access to our offices and lobbies to buy appointment-only and effective March 24th, the governors of Michigan and Indiana implemented a statewide emergency order to stay at home. The response by our employees to this national emergency has been incredible. This is best evidenced by the fact that all offices and departments remain open for business and are fully staffed. Horizon Bank's quick implementation of social distancing with approximately 42% of our employees working at remote locations. The quick expansion of the number of call center locations from three to four to better serve our customers and to handle the increase in call volume. The expansion of our interactive teller machines, also known as ITMs, to provide extended banking hours for our customers. And the long hours put forth by our lending and operational teams to manage record mortgage and commercial loan volume. So thank you to all of our employees for their amazing work to serve our customers. On page five of the supplemental slide deck, you will see a slide that states Indiana and Michigan are on the right side of Chicago. This has always been one of my favorite slides in our investor deck. Prior to COVID-19, we were experiencing population growth related to Illinois residents looking to move to Indiana and Michigan to avoid high taxes and other burdens associated with living and doing business in Illinois. Post-COVID-19, Our hospitals, especially those located along the border of Chicago, are seeing a large influx of Illinois patients. In addition, second homes owned by Illinois residents and located in Indiana and Michigan are fully occupied as they seek safety from dense urban living. Being located on the right side of Chicago is even more relevant today as people seek safe environments and opportunities to lower their cost of living. Verizon Bank is located on the right side of Chicago. Slide 6 reflects our current footprint in the states of Indiana and Michigan. And similar to the rest of the United States, our markets are experiencing a rise in COVID-19 cases. We are hopeful that the curve will start to bend and our governors will continue to move forward for plans to reopen. As of today, it appears that Indiana will reopen before Illinois and Michigan. Horizon is well positioned. Going into this national emergency. In addition to solid earnings, strong liquidity, and being well capitalized, which you will hear more about later this morning from our chief financial officer, Horizon's leadership team has collectively more than 200 years of banking and related field experience. We have managed through multiple recessions. Our board of directors provide sound oversight. As a group, they are well diversified in board tenure, demographics, experience, and skill sets. The Horizon team has completed 14 acquisitions and 11 de novo market expansions over the past 16 years, and therefore we know what it means to work hard to get the job done and to adapt to ever-changing conditions. Slide 9 exhibits Horizon's customer-centric and multi-channel delivery systems, which have been resilient during this time and help deliver to our customers the level of service that they've grown to expect. even during the current stay-at-home environment. Slide 10 speaks to Horizon's strength of our non-branched delivery channels. Alternative delivery channels have been an integral part of our long-term strategic plan for some time. As of March 31, 2020, 68% of our accounts are active users of our online and mobile banking platforms. Not surprising, during the first quarter of 2020, Horizon's digital transactions and call center volume increased by 35% and 32% respectively over the fourth quarter of 2019. Horizon branch transactions continued to decline due to customer migration to digital banking channels in Horizon's efforts to consolidate offices. To conclude my comments, I'd like to focus on slide 11, titled Multiple Revenue Streams Diversifies Risk. Horizon has included this slide in our investor presentation since the Great Recession. This slide represents management's philosophy to diversify revenue streams, to manage concentration risk, and balance revenue during counter-economic cycles. Today, Horizon's mortgage origination volume is robust and offsets headwinds related to pressure on net interest margin and slow loan growth. In addition, Horizon's balance sheet mix of investments, consumer and mortgage and commercial loans further diversifies credit risk and helps to manage net interest margin during a period of declining interest rates. Verizon is well positioned going into this state of emergency. Now to give you an update on our first quarter earning results and liquidity management, it's my pleasure to introduce you to our Chief Financial Officer, Mark Secor. Mark?