Horizon Bancorp, Inc.

Good morning, everyone, and welcome to the Horizon Bancorp conference call to discuss financial results for the three months ended. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity for you to ask questions and To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2. Please note, this event has been recorded. Before turning the call over to the management, please remember that today's call may contain statements that are forward-looking in nature. These statements are subject to risk, uncertainties, and other factors that could cause actual results to differ materially from those discussed, including those factors noted in the slide presentation. Additional information about factors that could cause actual reasons to defer materially is contained in the Horizon's current 10-K and later filings. In addition, management referred to certain non-GAAP financial measures that are intended to help investors understand Horizon business. Reconciliation for these measures are contained in the presentation. The company assumes no obligation to update any forward-looking statements made during the call. If anyone does not already have a copy of the press release and supplemental presentation issued by Horizon yesterday, you can access it at the company's website, www.horizonbank.com. Representing Horizon today are Chairman and Chief Executive Officer Craig Dwight, EVP and Chief Executive Financial Officer Mark Sikor, EVP and Senior Operations Officer Kathie DeRuiter, EVP and Chief Commercial Banking Officer Lynn Kerber, and EVP and Senior Retail and Mortgage Lending Officer Noe Najira. At this time, I'd like to turn the call over to Mr. Dwight. Thank you and over to you, sir.

Thank you, Jacob, and good morning. And thank you for participating in Horizon Bancorp's second quarter earnings conference call. Our comments today will follow the investor presentation and press release that we published yesterday, July 27th. Horizon is pleased to report a continuation of record earnings for the second quarter and solid momentum going into the third quarter with strong commercial and consumer loan growth and pipelines. The plans to close an additional seven offices in 2022 and the continuation of our excellent asset quality. We're very proud of our associates at Horizon and how they've successfully implemented our growth strategies. Starting on slide four are the company highlights. Horizon completed the second quarter reporting record earnings at 57 cents per share, which compares favorably to the 54 cents reported in 2020. The first quarter and 49 cents reported in the fourth quarter of 2021. This represents a quarter over quarter increase of 5.6%. Are there notable financial metrics for the quarter ended? As reported, pre-tax pre-provision net income of 29.1 million, which represents a 13.1% increase over the prior quarter's pre-tax pre-provision net income. A 3% reduction in our efficiency ratio to 55.6%. Return on average assets of 1.33 and return on average tangible equity at 19.9%. Overall, just an outstanding quarter for Verizon Bancorp. Driving the first quarter's results, annualized double-digit organic commercial and consumer loan growth, additional revenue from the acquired offices, cost saves achieved from last year's branch closures, and an increase in net interest margin. Given the size of our balance sheet, Highly efficient operations, talented workforce, and solid recruitment efforts, we believe Horizon is well positioned to capitalize on significant organic and strategic growth opportunities within our attractive Midwestern markets. So why invest in Horizon? Our investment thesis is simple. Horizon continues to report superior returns with a lower risk profile due to our diversified balance sheet, excess liquidity, and low-cost core deposits.

We are located in attractive Midwest growth markets.