**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      DC 20549**

**Form      10-Q**

| x | Quarterly                report under section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|-----------------------------------------------------------------------------------------------------------------|

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE                ACT |
|---|-----------------------------------------------------------------------------------------------|

| Florida                                                                                     |   | 65-0840545                                                     |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
| (State                or Other Jurisdiction ofIncorporation                or Organization) |   | (IRS                EmployerIdentification                No.) |

| Large                Accelerated Filer o | Accelerated                Filer o         |
|------------------------------------------|--------------------------------------------|
| Non-Accelerated                Filer o   | Smaller                reporting company o |

----

| Part                I. Financial Information                                                                                                               |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                       |   |   |
| Item                1. Financial Statements (unaudited)                                                                                                    |   |   |
|                                                                                                                                                       |   |   |
| Consolidated                Balance Sheets as of March 31, 2008 and December 31, 2007                                                                      |   | 3      |
|                                                                                                                                                       |   |   |
| Consolidated                Statements of Income for the Three Months Ended March 31, 2008 and                2007                                         |   | 4      |
|                                                                                                                                                       |   |   |
| Consolidated                Statements of Cash Flows for the Three Months Ended March 31, 2008                and                2007                      |   | 5      |
|                                                                                                                                                       |   |   |
| Consolidated                Statements of Changes in Shareholders' Equity for the Three Months                Ended                March 31, 2008 and 2007 |   | 6      |
|                                                                                                                                                       |   |   |
| Notes                to Consolidated Financial Statements                                                                                                  |   | 7      |
|                                                                                                                                                       |   |   |
| Item                2. Management's Discussion and Analysis of Financial Conditions and                Results of Operations                               |   | 12     |
|                                                                                                                                                       |   |   |
| Item                3. Quantitative and Qualitative Disclosure about Market                Risk                                                            |   | 19     |
|                                                                                                                                                       |   |   |
| Item                4T. Controls and Procedures                                                                                                            |   | 19     |
|                                                                                                                                                       |   |   |
| Part                II. Other Information                                                                                                                  |   |   |
|                                                                                                                                                       |   |   |
| Item                1. Legal Proceedings                                                                                                                   |   | 20     |
|                                                                                                                                                       |   |   |
| Item                1A. Risk Factors                                                                                                                  |   | 20     |
|                                                                                                                                                       |   |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds                                                          |   | 20     |
|                                                                                                                                                       |   |   |
| Item                3. Defaults Upon Senior Securities                                                                                                     |   | 20     |
|                                                                                                                                                       |   |   |
| Item                4. Submission of Matters to a Vote of Security Holders                                                                                 |   | 20     |
|                                                                                                                                                       |   |   |
| Item                5. Other Information                                                                                                                   |   | 20     |
|                                                                                                                                                       |   |   |
| Item                6. Exhibits                                                                                                                            |   | 20     |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1.  Financial Statements**
**.**

**HORIZON      BANCORPORATION, INC.**

|                                                                                                                                                                                                                                                                             |   | March 31,2008(Unaudited) |        | December 31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|-----------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                       |   |                          |        |                  |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                       |   |                          |        |                  |   |
| Cash                  and due from banks                                                                                                                                                                                                                                         |   | $                             | 3,127,654   |                  | $      | 2,391,201 |   |
| Federal                  funds sold                                                                                                                                                                                                                                              |   |                          | 623,000     |                  |   | 618,000 |   |
| Total                  cash and cash equivalents                                                                                                                                                                                                                                 |   |                          | 3,750,654   |                  |   | 3,009,201 |   |
| Securities:                                                                                                                                                                                                                                                                      |   |                          |        |                  |   |   |   |
| Held                  to maturity, at amortized cost                                                                                                                                                                                                                             |   |                          | 13,089,979  |                  |   | 13,090,921 |   |
| Available-for-sale                  at fair value                                                                                                                                                                                                                                |   |                          | 19,852,186  |                  |   | 19,800,961 |   |
| Loans                  held for sale                                                                                                                                                                                                                                             |   |                          | 1,233,867   |                  |   | 0 |   |
| Loans                  receivable, net                                                                                                                                                                                                                                           |   |                          | 155,845,853 |                  |   | 153,514,193 |   |
| Property                  and equipment, net                                                                                                                                                                                                                                     |   |                          | 2,033,749   |                  |   | 2,030,744 |   |
| Other                  real estate owned                                                                                                                                                                                                                                         |   |                          | 2,064,411   |                  |   | 1,119,411 |   |
| Other                  assets                                                                                                                                                                                                                                                    |   |                          | 2,694,319   |                  |   | 2,263,963 |   |
|                                                                                                                                                                                                                                                                             |   |                          |        |                  |   |   |   |
|                                                                                                                                                                                                                                                                             |   | $                             | 200,565,018 |                  | $      | 194,829,394 |   |
|                                                                                                                                                                                                                                                                             |   |                          |        |                  |   |   |   |
| Liabilities                                                                                                                                                                                                                                                                      |   |                          |        |                  |   |   |   |
| Deposits                                                                                                                                                                                                                                                                         |   |                          |        |                  |   |   |   |
| Noninterest-bearing                                                                                                                                                                                                                                                              |   | $                             | 10,949,662  |                  | $      | 8,884,651 |   |
| Interest-bearing                                                                                                                                                                                                                                                                 |   |                          | 152,411,294 |                  |   | 137,670,717 |   |
| Total                  deposits                                                                                                                                                                                                                                                  |   |                          | 163,360,956 |                  |   | 146,555,368 |   |
| Federal                  Home Loan Bank borrowings                                                                                                                                                                                                                               |   |                          | 24,000,000  |                  |   | 29,700,000 |   |
| Federal                  funds purchased                                                                                                                                                                                                                                         |   |                          | 0           |                  |   | 5,028,000 |   |
| Dividends                  Payable                                                                                                                                                                                                                                               |   |                          | 0           |                  |   | 196,729 |   |
| Other                  liabilities                                                                                                                                                                                                                                               |   |                          | 546,496     |                  |   | 195,772 |   |
|  Total                  liabilities                                                                                                                                                                                                                                         |   |                          | 187,907,452 |                  |   | 181,675,869 |   |
|                                                                                                                                                                                                                                                                             |   |                          |        |                  |   |   |   |
| Shareholders'                  equity                                                                                                                                                                                                                                            |   |                          |        |                  |   |   |   |
| Preferred                  stock, $.01 par value 1,000,000 shares authorized; none                  outstanding                                                                                                                                                                  |   |                          | -           |                  |   | - |   |
| Treasury                  stock outstanding 39,733 shares at March 31, 2008 and 19,773 shares                  at                  December 31, 2007                                                                                                                             |   |                          | (479,393    | )                     |   | (232,393 | ) |
| Common                  stock, $.01 par value 25,000,000 shares authorized; 1,808,219 Issued                  and                  1,768,446 outstanding at March 31, 2008 and 1,808,219 issued and                  1,788,446                  outstanding at December 31, 2007 |   |                          | 18,082      |                  |   | 18,082 |   |
| Additional                  paid in capital                                                                                                                                                                                                                                      |   |                          | 10,312,582  |                  |   | 10,288,581 |   |
| Retained                  earnings                                                                                                                                                                                                                                               |   |                          | 4,028,460   |                  |   | 3,727,722 |   |
| Accumulated                  other comprehensive income (loss), net of tax                                                                                                                                                                                                       |   |                          | (1,222,165  | )                     |   | (648,467 | ) |
| Total                  shareholders' equity                                                                                                                                                                                                                                      |   |                          | 12,657,566  |                  |   | 13,153,525 |   |
|                                                                                                                                                                                                                                                                             |   |                          |        |                  |   |   |   |
|                                                                                                                                                                                                                                                                             |   | $                             | 200,565,018 |                  | $      | 194,829,394 |   |

----

**HORIZON      BANCORPORATION, INC.**

|                                                                   |   | For the three months ended March 31, |      |
|------------------------------------------------------------------------|--------|--------------------------------------------------------------------|-----------|
|                                                                   |   | 2008                                                               |      | 2007 |   |
| **Interest                income**                                     |   |                                                               |      |   |   |
| Interest                and fees on loans                              |   | $                                                                  | 2,866,687 |   | $ | 2,687,158 |   |
| Interest                on investment securities                       |   |                                                               | 453,352   |   |   | 356,873 |   |
| Interest                on federal funds                               |   |                                                               | 19,900    |   |   | 30,752 |   |
| Total                interest income                                   |   |                                                               | 3,339,939 |   |   | 3,074,783 |   |
| **Interest                expense**                                    |   |                                                               |      |   |   |   |   |
| Interest                on deposits                                    |   |                                                               | 1,627,463 |   |   | 1,517,062 |   |
| Interest                on borrowings                                  |   |                                                               | 264,790   |   |   | 132,663 |   |
| Total                interest expense                                  |   |                                                               | 1,892,253 |   |   | 1,649,725 |   |
| **Net                interest income**                                 |   |                                                               | 1,447,686 |   |   | 1,425,058 |   |
| Provision                for loan losses                               |   |                                                               | 95,000    |   |   | 30,000 |   |
| **Net                interest income after provision for loan losses** |   |                                                               | 1,352,686 |   |   | 1,395,058 |   |
| Noninterest                income                                      |   |                                                               |      |   |   |   |   |
| Gain/(loss)                on sales of loans                           |   |                                                               | 0         |   |   | 0 |   |
| Gain/(loss)                on sale of foreclosed assts                 |   |                                                               | 0         |   |   | (2,591 | ) |
| Gain                /(loss) on sale of assets                          |   |                                                               | 167,500   |   |   | (271 | ) |
| Service                charges on deposit accounts                     |   |                                                               | 24,136    |   |   | 23,361 |   |
| Miscellaneous,                other                                    |   |                                                               | 58,516    |   |   | 21,317 |   |
| Total                noninterest income                                |   |                                                               | 250,152   |   |   | 41,816 |   |
| Noninterest                expense                                     |   |                                                               |      |   |   |   |   |
| Salaries                and benefits                                   |   |                                                               | 598,613   |   |   | 516,702 |   |
| Building                & equipment expense                        |   |                                                               | 180,925   |   |   | 163,991 |   |
| Professional                fees                                       |   |                                                               | 53,529    |   |   | 110,781 |   |
| Data                processing & software expense                  |   |                                                               | 93,794    |   |   | 92,115 |   |
| Other                noninterest expense                               |   |                                                               | 211,250   |   |   | 157,940 |   |
| Total                noninterest expense                               |   |                                                               | 1,138,111 |   |   | 1,041,529 |   |
| **Income                before income taxes**                          |   |                                                               | 464,727   |   |   | 395,345 |   |
| Income                tax expense                                      |   |                                                               | 163,989   |   |   | 94,321 |   |
| **Net                Income**                                          |   | $                                                                  | 300,738   |   | $ | 301,024 |   |
| Basic                earnings per share                                |   | $                                                                  | 0.17      |   | $ | 0.17 |   |
| Diluted                earnings per share                              |   |                                                               | 0.16      |   |   | 0.16 |   |

----

**HORIZON      BANCORPORATION, INC.**

|                                                                                                                                        |   | For the three monthsended March 31, 2008 |       | For the three monthsended March 31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|------------------------------------------------------------------------|--------|
| **Cash                flows from operating activities**                                                                                     |   |                                                                   |       |                                                                   |   |
| Net                cash provided by operating activities                                                                                    |   | $                                                                      | 317,531    |                                                                   | $      | 8,047 |   |
| **Cash                flows from investing activities**                                                                                     |   |                                                                   |       |                                                                   |   |   |   |
| Proceeds                from sale of other assets                                                                                           |   |                                                                   | 190,000    |                                                                   |   | 12,500 |   |
| Purchase                of securities held to maturity                                                                                      |   |                                                                   | 0          |                                                                   |   | (5,844,643 | ) |
| Purchase                of securities available for sale                                                                                    |   |                                                                   | (2,165,307 | )                                                                 |   | (153,644 | ) |
| Proceeds                    from maturities and principal repayments of securities available                    for                    sale |   |                                                                   | 1,066,896  |                                                                   |   | 1,100,391 |   |
| Purchase                of Federal Home Loan Bank Stock                                                                                     |   |                                                                   | 163,500    |                                                                   |   | 112,500 |   |
| Increase                in other real estate owned                                                                                          |   |                                                                   | (945,000   | )                                                                      |   | 0 |   |
| Increase                in loans held for sale                                                                                              |   |                                                                   | (1,233,867 | )                                                                      |   | 0 |   |
| Loan                originations, net                                                                                                       |   |                                                                   | (2,426,660 | )                                                                      |   | (2,134,272 | ) |
| Property                and equipment expenditures, net                                                                                     |   |                                                                   | (56,228    | )                                                                      |   | (33,396 | ) |
| Net                cash provided (used) by investing activities                                                                             |   |                                                                   | (5,406,666 | )                                                                      |   | (6,940,564 | ) |
| **Cash                flows from financing activities**                                                                                     |   |                                                                   |       |                                                                   |   |   |   |
| Exercise                of warrants and options                                                                                             |   |                                                                   | 0          |                                                                   |   | 804 |   |
| Increase                in deposits                                                                                                         |   |                                                                   | 16,805,588 |                                                                   |   | 8,294,232 |   |
| Increase/(decrease)                in fed funds purchased                                                                                   |   |                                                                   | (5,028,000 | )                                                                      |   | 0 |   |
| Increase/(decrease)                in borrowings, net                                                                                       |   |                                                                   | (5,700,000 | )                                                                      |   | (2,500,000 | ) |
| Purchase                of treasury stock                                                                                                   |   |                                                                   | (247,000   | )                                                                      |   | 0 |   |
| Net                cash provided by financing activities                                                                                    |   |                                                                   | 5,830,588  |                                                                   |   | 5,795,036 |   |
| Net                change in cash and cash equivalents                                                                                      |   |                                                                   | 741,453    |                                                                   |   | (1,137,481 | ) |
| Cash                and cash equivalents at beginning of period                                                                             |   |                                                                   | 3,009,201  |                                                                   |   | 4,672,956 |   |
| **Cash                and cash equivalents at end of period**                                                                               |   | $                                                                      | 3,750,654  |                                                                   | $      | 3,535,475 |   |

----

**HORIZON      BANCORPORATION, INC**
**.**
** **

|                                                                                                                           |   |              |         |           |    |         |         |     |     | Accumulated |    |       |         |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------------|----------------|---------|--------------|--------------|----------|----------|-------------|---------|------------|--------------|
|                                                                                                                           |   | Common Stock |         | Treasury       |    | Paid in |         | Earnings |     | Other       |    |       |         |
|                                                                                                                           |   | Shares            |         | Par Value |    | Stock        |         | Capital  |     | Retained    |    | Income     |         | Total |   |
| Balance,                  December 31, 2006                                                                                    |   |              | 1,808,152    |      | $  | 18,082       |    |     |     |        | $       | 10,223,103 |         | $ | 2,468,651 |   | $ | (140,219 | )  | $ | 12,569,617 |   |
| Comprehensive                  Income:                                                                                         |   |              |         |           |    |         |         |     |     |        |    |       |         |   |   |   |   |   |   |   |   |   |
| Net                  income, three-month period ended March 31, 2007                                                           |   |              | —      |           |    | —      |         |     |     |        |    | —    |         |   | 301,024 |   |   | — |   |   | 301,024 |   |
|                                                                                                                           |   |              |    |           |    |         |         |     |     |        |    |       |         |   |   |   |   |   |   |   |   |   |
| Net                  unrealized gains on securities, three-month period ended March                  31,                  2007 |   |              | —      |           |    | —      |         |     |     |        |    | —    |         |   |   |   |   | 28,483 |   |   | 28,483 |   |
|                                                                                                                           |   |              |         |           |    |         |         |     |     |        |    |       |         |   |   |   |   |   |   |   |   |   |
| Total                  comprehensive income/(loss),net of tax                                                                  |   |              | —      |           |    | —      |         |     |     |        |    | —    |         |   | — |   |   |   |   |   | 329,507 |   |
|                                                                                                                           |   |              |         |           |    |         |         |     |     |        |    |       |         |   |   |   |   |   |   |   |   |   |
| Exercise                  of warrants & Stock options                                                                      |   |              | 67           |           |    | -            |         |     |     |        |    | 804        |         |   |   |   |   |   |   |   | 804 |   |
| Stock                  based Compensation                                                                                      |   |              |         |           |    |         |         |     |     |        |    | 10,067     |         |   |   |   |   |   |   |   | 10,067 |   |
| Balance,                  March 31, 2007                                                                                       |   |              | 1,808,219    |           | $       | 18,082       |         |     |     |        | $       | 10,233,974 |         | $ | 2,769,675 |   | $ | (111,736 | ) | $ | 12,909,995 |   |
| Balance,                  December 31, 2007                                                                                    |   |              | 1,788,446    |           | $       | 18,082       |         | $   | (232,393 | )      | $  | 10,288,581 |    | $  | 3,727,722 |    | $  | (648,467 | )  | $  | 13,153,525 |   |
| Comprehensive                  Income:                                                                                         |   |              |         |           |    |         |         |     |     |        |    |       |         |   |   |   |   |   |   |   |   |   |
| Net                  income, three-month period ended March 31, 2008                                                           |   |              | —      |           |    | —      |         |     |     |        |    | —    |         |   | 300,738 |   |   | — |   |   | 300,738 |   |
| Net                  unrealized gains on securities, three-month period ended March                  31,                  2008 |   |              | —      |           |    | —      |         |     |     |        |    | —    |         |   |    |   |   | (573,698 | )  |   | (573,698 | )  |
|                                                                                                                           |   |              |         |           |    |         |         |     |     |        |    |       |         |   |   |   |   |   |   |   |   |   |
| Total                  comprehensive income/(loss),net of tax                                                                  |   |              | —      |           |    | —      |         |     |     |        |    | —    |         |   | — |   |   |                      |   |   | (272,960 | ) |
|                                                                                                                           |   |              |         |           |    |         |         |     |     |        |    |       |         |   |   |   |   |   |   |   |   |   |
| Repurchase                  of common stock                                                                                    |   |              | -20,000      |           |    | -            |         |     | (247,000 | )           |    | -          |         |   |   |   |   |   |   |   | (247,000 | ) |
| Stock                  based Compensation                                                                                      |   |              |         |           |    |         |         |     |     |        |    | 24,001     |         |   |   |   |   |   |   |   | 24,001 |   |
| Balance,                  March 31, 2008                                                                                       |   |              | 1,768,446    |           | $       | 18,082       |         | $        | (479,393 | )           | $       | 10,312,582 |         | $ | 4,028,460 |   | $ | (1,222,165 | ) | $ | 12,657,566 |   |

----

**HORIZON      BANCORPORATION, INC.**

**NOTE      1 – BASIS OF PRESENTATION**

**NOTE      2 – SUMMARY OF ORGANIZATION**

**NOTE      3 – LOANS RECEIVABLE**

|                                                 |   | March 31,2008 |        | December 31,2007 |   |
|------------------------------------------------------|--------|--------------------|-------------|-----------------------|--------|
| Real                estate – commercial   |   | $                  | 90,386,197  |                  | $      | 84,089,484 |   |
| Real                estate – construction |   |               | 1,458,082   |                  |   | 4,467,425 |   |
| Real                estate – residential  |   |               | 32,925,811  |                  |   | 32,125,396 |   |
| Commercial                                           |   |               | 29,365,159  |                  |   | 30,743,834 |   |
| Consumer                                             |   |               | 3,060,497   |                  |   | 3,490,897 |   |
| Loans,                gross                          |   |               | 157,195,746 |                  |   | 154,917,036 |   |
| Deduct                allowance for loan losses      |   |               | (1,349,893  | )                     |   | (1,402,843 | ) |
| Loans,                net                            |   | $                  | 155,845,853 |                  | $      | 153,514,193 |   |

----

**HORIZON      BANCORPORATION, INC.**

**NOTE      3 – LOANS RECEIVABLE (Continued)**

|                                          |   | 2008   |      | 2007   |   |
|-----------------------------------------------|--------|--------|-----------|--------|--------|
|                                          |   |   |      |   |   |
| Balance                at beginning of period |   | $      | 1,402,843 |   | $      | 1,570,844 |   |
| Provision                for loan losses      |   |   | 95,000    |   |   | 30,000 |   |
| Loans                charged-off              |   |   | (147,950  | )      |   | (122,573 | ) |
| Recoveries                                    |   |   | 0         |   |   | 20,806 |   |
|                                          |   |   |      |   |   |   |   |
| Balance                at end of period       |   | $      | 1,349,893 |   | $      | 1,499,077 |   |

**NOTE      4 – SECURITIES HELD-TO-MATURITY**

|                                       |   | Less Than     |      | Over               |   |      |    |
|--------------------------------------------|--------|--------------------|-----------|--------------------|--------|-----------|---------|
|                                       |   | Twelve Months |      | Twelve Months |   | Total     |    |
|                                       |   | FairValue          |      | UnrealizedLoss     |   | FairValue |    | UnrealizedLoss |   | Fair Value |   | UnrealizedLoss |   |
| State,                County and Municipal |   | $                  | 4,180,329 |               | $      | (212,980  | )  | $ | 4,496,999 |   | $ | (265,811 | )  | $ | 8,677,328 |   | $ | (478,791 | ) |
| Corporate                Securities        |   |               | 864,400   |               |   | (135,600  | )       |   | 0 |   |   | 0 |   |   | 864,400 |   |   | (135,600 | ) |
|      Total        |   | $                  | 5,044,729 |               | $      | (348,580  | )       | $ | 4,496,999 |   | $ | (265,811 | ) | $ | 9,541,728 |   | $ | (614,391 | ) |

----

**HORIZON      BANCORPORATION, INC.**

**NOTE      5 – SECURITIES AVAILABLE FOR SALE**

|                                                                                                       |   | Less thanTwelve Months |      | Greater thanTwelve Months |   | Total                       |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-----------|-------------------------------------|--------|-----------------------------|--------|
|                                                                                                       |   | FairValue                        |      | UnrealizedLoss                      |   | Fair                  Value |   | UnrealizedLoss |   | Fair                  Value |   | UnrealizedLoss |   |
| U.S.                  Agency                                                                               |   | $                                | 0         |                                | $      | 0                           |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   |
| Collateralized                  Mortgage obligations                                                       |   |                             | 0         |                                |   | 0                           |   |   | 754,816 |   |   | (25,989 | ) |   | 754,816 |   |   | (25,989 | ) |
| Mortgage                  backed securities                                                           |   |                             | 1,248,521 |                                |   | (719,733                    | )      |   | 575,630 |   |   | (1,013,222 | ) |   | 1,824,151 |   |   | (1,732,955 | ) |
| Trust                  preferred securities & other corporate                  notes    |   |                             | 3,026,880 |                                |   | (135,690                    | )      |   | 1,463,730 |   |   | (44,232 | ) |   | 4,490,610 |   |   | (179,922 | ) |
| Total                                                                                                      |   | $                                | 4,275,401 |                                | $      | (855,423                    | )      | $ | 2,794,176 |   | $ | (1,083,443 | ) | $ | 7,069,577 |   | $ | (1,938,866 | ) |

**NOTE      6 - EARNINGS PER SHARE**

|                                                                         |   | Three Months Ended March 31, 2008 |      | Three Months Ended March 31, 2007 |   |
|------------------------------------------------------------------------------|--------|------------------------------------------------------------|-----------|------------------------------------------------------------|--------|
| Basic                earnings per share                                      |   |                                                       |      |                                                       |   |
| Net                income applicable to common stock                         |   | $                                                          | 300,738   |                                                       | $      | 301,024 |   |
| Weighted                average shares outstanding                           |   |                                                       | 1,772,182 |                                                       |   | 1,808,161 |   |
| Basic                earnings per share                                      |   | $                                                          | 0.17      |                                                       | $      | 0.17 |   |
|                                                                         |   |                                                       |      |                                                       |   |   |   |
| Diluted                earnings per share                                    |   |                                                       |      |                                                       |   |   |   |
| Net                income applicable to common stock                         |   | $                                                          | 300,738   |                                                       | $      | 301,024 |   |
|                                                                         |   |                                                       |      |                                                       |   |   |   |
| Weighted                average shares outstanding                           |   |                                                       | 1,772,182 |                                                       |   | 1,808,161 |   |
| Dilutive                effect of assumed exercise of stock options/warrants |   |                                                       | 86,423    |                                                       |   | 113,010 |   |
| Diluted                average shares outstanding                            |   |                                                       | 1,858,605 |                                                       |   | 1,921,171 |   |
|                                                                         |   |                                                       |      |                                                       |   |   |   |
| Diluted                earnings per share                                    |   | $                                                          | 0.16      |                                                       | $      | 0.16 |   |

----

**HORIZON      BANCORPORATION, INC.**

**Note      7 - Recent Accounting Pronouncements**

|                                         |   |          |   | **Fair Value Measurements Using**                                          |   |
|----------------------------------------------|--------|---------------|--------|-------------------------------------------------------------------------------------------|--------|
|                                         |   |          |   | **Quoted Prices in                Active Marketsfor IdenticalAssets** |   | **Significant Other                Observable Input** |   | **Significant                UnobservableInputs** |   |
| **Descriptions**                             |   | **3/31/2008** |   | **(Level 1)**                                                                        |   | **(Level 2)** |   | **(Level 3)** |   |
| Held                to maturity securities   |   | $             | 13,090 |                                                                                      |   |   |   | $ | 13,090 |   |   |   |   |
| Available-for-sale                securities |   | $             | 19,852 |                                                                                      | $      | 2,113 |   | $ | 17,739 |   |   |  |   |
| Impaired                Loans                |   | $             | 867    |                                                                                      |   |    |   |   |    |   | $ | 867 |   |
| Total                                        |   | $             | 33.809 |                                                                                      | $      | 2,113 |   | $ | 30,829 |   | $ | 867 |   |

----

**HORIZON      BANCORPORATION, INC.**

*The      Fair Value Option for Financial Assets and Financial Liabilities - Including      an      Amendment of FASB Statement No 115. *
*Accounting      for Certain Investments in Debt and Equity Securities*

*Business      Combinations*

*Noncontrolling      Interests in Consolidated Financial Statements - An Amendment of ARB No      51*

----

**Item      2: Management's Discussion and Analysis of Financial Condition and      Operations **
**Forward      Looking Statements**

**Overview**

**Results      of Operations **

----

|                                                  |   | Three months ended March 31, 2008Compared withThree months ended March 31, 2007 |   |
|-------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                  |   | (in thousands)                                                                                                                    |   |
|                                                  |   | Increase (decrease) due to:                                                                                             |   |
|                                                  |   | Volume                                                                                                                                 |   | Rate |   | Total |   |
| Interest                earned on:                    |   |                                                                                                                                   |   |   |   |   |   |
| Taxable/Nontaxable                securities          |   |                                                                                                                                   | 105    |   |   | (9 | ) |   | 96 |   |
| Federal                funds sold                     |   |                                                                                                                                   | 3      |   |   | (14 | ) |   | (11 | ) |
| Net                loans                              |   |                                                                                                                                   | 311    |   |   | (131 | ) |   | 180 |   |
|                                                  |   |                                                                                                                                   |   |   |   |   |   |   |   |   |
| Total                Interest Income                  |   |                                                                                                                                   | 419    |   |   | (154 | ) |   | 265 |   |
|                                                  |   |                                                                                                                                   |   |   |   |   |   |   |   |   |
| Interest                paid on:                      |   |                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                  |   |                                                                                                                                   |   |   |   |   |   |   |   |   |
| NOW                deposits and money market deposits |   |                                                                                                                                   | (97    | ) |   | (93 | ) |   | (190 | ) |
| Savings                  deposits                     |   |                                                                                                                                   | 29     |   |   | (12 | ) |   | 17 |   |
| Time                  deposits                        |   |                                                                                                                                   | 302    |   |   | (19 | ) |   | 283 |   |
| Other                  borrowings                     |   |                                                                                                                                   | 126    |   |   | 6 |   |   | 132 |   |
|                                                  |   |                                                                                                                                   |   |   |   |   |   |   |   |   |
| Total                interest Expense                 |   |                                                                                                                                   | 360    |   |   | (118 | ) |   | 242 |   |
|                                                  |   |                                                                                                                                   |   |   |   |   |   |   |   |   |
| Change                in net interest income          |   | $                                                                                                                                      | 59     |   | $ | (36 | ) | $ | 23 |   |

|                                                            |   | Three months ended March 31, |    |
|-----------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                            |   | 2008                                             |    | 2007 |   |
|                                                            |   | AverageVolume                                    |    | Interest |   | Yield/Cost |   | AverageVolume |   | Interest |   | Yield/Cost |   |
|                                                            |   |                                             |    |
| ASSETS                                                          |   |                                             |    |   |   |   |   |   |   |   |   |   |   |
| Interest-earning                assets:                         |   |                                             |    |   |   |   |   |   |   |   |   |   |   |
| Federal                funds sold                               |   | $                                                | 2,365   |   | $ | 20 |   |   | 3.38 | % | $ | 2,157 |   | $ | 31 |   |   | 5.75 | % |
| Securities                                                      |   |                                             | 33,081  |   |   | 453 |   |   | 5.48 |   |   | 25,372 |   |   | 357 |   |   | 5.63 |   |
| Loans                receivable                                 |   |                                             | 156,680 |   |   | 2,867 |   |   | 7.32 |   |   | 138,983 |   |   | 2,687 |   |   | 7.73 |   |
| Total                interest-earning assets                    |   | $                                                | 192,126 |   |   | 3,340 |   |   | 6.95 |   | $ | 166,512 |   |   | 3,075 |   |   | 7.39 |   |
|                                                            |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                                                     |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                    |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transactional                accounts                           |   | $                                                | 24,015  |   |   | 136 |   |   | 2.27 |   | $ | 37,542 |   |   | 326 |   |   | 3.47 |   |
| Savings                deposits                                 |   |                                             | 14,160  |   |   | 120 |   |   | 3.39 |   |   | 10,135 |   |   | 103 |   |   | 4.07 |   |
| Time                deposits                                    |   |                                             | 111,629 |   |   | 1,371 |   |   | 4.91 |   |   | 87,039 |   |   | 1,088 |   |   | 5.00 |   |
| Other                borrowings                                 |   |                                             | 25,265  |   |   | 265 |   |   | 4.20 |   |   | 13,239 |   |   | 133 |   |   | 4.02 |   |
| Total                interest-bearing liabilities               |   | $                                                | 175,069 |   |   | 1,892 |   |   | 4.32 |   | $ | 147,955 |   |   | 1,650 |   |   | 4.46 |   |
| Interest                rate spread                             |   |                                             |    |   |   |   |   |   | 2.63 | % |   |   |   |   |   |   |   | 2.93 | % |
| Net                interest income and net interest Margin |   |                                             |         |   | $ | 1,448 |   |   | 3.01 | % |   |  |   | $ | 1,425 |   |   | 3.42 | % |

----

**Balance      Sheet Analysis**

----

|                                                            |   | March 31, 2008 |   | December 31, 2007 |   |
|-----------------------------------------------------------------|--------|--------------------------|--------|-----------------------------|--------|
|                                                            |   |                     |   |                        |   |
| Available-for-Sale:                                             |   |                     |   |                        |   |
|                                                            |   |                     |   |                        |   |
| U.S.                Agency Bonds                                |   | $                        | 2,113  |                        | $      | 2,106 |   |
| Collateralized                mortgage obligations              |   |                     | 5,164  |                        |   | 5,004 |   |
| Mortgage-backed                securities                       |   |                     | 2,654  |                        |   | 2,526 |   |
| Trust                Preferred & Other Corporate Securities |   |                     | 8,059  |                        |   | 8,139 |   |
| Equity                securities                                |   |                     | 1,862  |                        |   | 2,026 |   |
|   Total                Available-for-Sale Securities  |   | $                        | 19,852 |                        | $      | 19,801 |   |
|                                                            |   |                     |   |                        |   |   |   |
| Held-to-Maturity                Securities:                     |   |                     |   |                        |   |   |   |
|                                                            |   |                     |   |                        |   |   |   |
| Corporate                Securities                             |   | $                        | 864    |                        | $      | 812 |   |
| General                obligation bonds of municipalities       |   |                     | 6,345  |                        |   | 6,649 |   |
| Revenue                bonds of municipalities                  |   |                     | 5,282  |                        |   | 5,096 |   |
|                                                            |   |                     |   |                        |   |   |   |
| Total                Held-to-Maturity Securities                |   | $                        | 12,491 |                        | $      | 12,557 |   |
|                                                            |   |                     |   |                        |   |   |   |
| Total                Portfolio                                  |   | $                        | 32,343 |                        | $      | 32,358 |   |

|                                     |   | March 31, 2008 |    | December 31, 2007 |   |
|------------------------------------------|--------|--------------------------|---------|-----------------------------|--------|
| Type                of Loan              |   |                     |    |                        |   |   |   |
| Commercial                real estate    |   | $                        | 90,386  |                        | $      | 84,090 |   |
| Residential                real estate   |   |                     | 32,926  |                        |   | 32,125 |   |
| Construction                loans        |   |                     | 1,458   |                        |   | 4,467 |   |
| Commercial                loans          |   |                     | 29,365  |                        |   | 30,744 |   |
| Consumer                loans            |   |                     | 3,061   |                        |   | 3,491 |   |
| Subtotal                                 |   |                     | 157,196 |                        |   | 154,917 |   |
| Allowance                for loan losses |   |                     | (1,350  | )                           |   | (1,403 | ) |
| Total                (net of allowance)  |   | $                        | 155,846 |                        | $      | 153,514 |   |

----

**Asset      Quality**

----

|                                                                                                                                                                                                                                               |   |  March 31, 2008 |   |  December 31, 2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |
| Loans                  accounted for on a non-accrual basis:                                                                                                                                                                                       |   |                           |   |                              |   |
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |
| Number:                                                                                                                                                                                                                                            |   |                           | eleven |                              |   | twelve |   |
| Amount:                                                                                                                                                                                                                                            |   | $                              | 1,282  |                              | $      | 2,084 |   |
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |   |   |
| Accruing                  loans which are contractually past due 90 days or more as to principal                  and                  interest payments:                                                                                          |   |                           |   |                              |   |   |   |
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |   |   |
| Number:                                                                                                                                                                                                                                            |   |                           | one    |                              |   | one |   |
| Amount:                                                                                                                                                                                                                                            |   | $                              | 12     |                              | $      | 2 |   |
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |   |   |
| Loans                  which were renegotiated to provide a reduction or deferral of interest                  or                  principal because of deterioration in the financial position of                  the                  borrower: |   |                           |   |                              |   |   |   |
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |   |   |
| Number:                                                                                                                                                                                                                                            |   |                           | none   |                              |   | none |   |
| Amount:                                                                                                                                                                                                                                            |   | $                              | 0      |                              | $      | 0 |   |
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |   |   |
| Loans                  for which there are serious doubts as to the borrower's ability                  to comply                  with existing terms:                                                                                            |   |                           |   |                              |   |   |   |
|                                                                                                                                                                                                                                               |   |                           |   |                              |   |   |   |
| Number:                                                                                                                                                                                                                                            |   |                           | eleven |                              |   | twelve |   |
| Amount:                                                                                                                                                                                                                                            |   | $                              | 3,619  |                              | $      | 4,363 |   |

----

|                                                                                          |   | **For the Three** |    | **For the Twelve** |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------|---------|------------------------------|--------|
|                                                                                          |   | **Months Ended**       |    | **Months Ended**        |   |
|                                                                                          |   | **March 31,**          |    | **December, 31**        |   |
|                                                                                          |   | **2008**                    |    | **2007**                     |   | **2007** |   |
|                                                                                          |   |                        |    |                         |   |   |   |   |   |   |
| End                of period loans (net of deferred fees)                                     |   | $                           | 157,196 |                         | $      | 139,833 |   | $ | 154,917 |   |
| End                of period allowance for loan losses                                        |   | $                           | 1,350   |                         | $      | 1,499 |   | $ | 1,403 |   |
| %age                of allowance for loan losses to total loans                               |   |                        | 0.86    | %                            |   | 1.07 | % |   | .91 | % |
| Average                loans for the period                                                   |   | $                           | 156,680 |                         | $      | 138,983 |   | $ | 144,393 |   |
| Net                charge-offs as a percentage of average loans for the                period |   |                        | .09     | %                            |   | .07 | % |   | .22 | % |
| Nonperforming                assets                                                           |   |                        |    |                         |   |   |   |   |   |   |
| Nonaccrual                loans                                                               |   | $                           | 1,282   |                         | $      | 3,169 |   | $ | 2,084 |   |
| Loans                past due 90 days or more and still accruing                              |   | $                           | 12      |                         | $      | 0 |   | $ | 2 |   |
| Other                real estate                                                              |   | $                           | 2,064   |                         | $      | 26 |   | $ | 1,119 |   |
|                                                                                          |   | $                           | 3,358   |                         | $      | 3,195 |   | $ | 3,205 |   |
| Nonperforming                assets to period end loans                                       |   |                        | 2.12    | %                            |   | 2.28 | % |   | 2.07 | % |
| Nonperforming                assets to period end total assets                                |   |                        | 1.68    | %                            |   | 1.84 | % |   | 1.65 | % |

**Liquidity      and Capital Resources**

|                                     |   | Bank's                   |   | Minimum Regulatory |   |
|------------------------------------------|--------|--------------------------|--------|-------------------------|--------|
|                                     |   | March 31, 2008 |   | Requirement             |   |
| Leverage                Ratio            |   |                     | 7.0    | %                       |   | 4.0 | % |
| Total                Risk Weighted ratio |   |                     | 10.02  | %                       |   | 8.0 | % |

----

**Item      3: Quantitative and Qualitative Disclosure About Market      Risk**

**Item      4T. Controls and Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      1A.  Risk Factors**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security Holders**

**Item      5. Other Information**

**Item      6. Exhibits**

| 31.1   |   | Certification                of Chief Executive Officer                                                                                                                                                           |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                              |
| 31.2   |   | Certification                of Chief Financial Officer                                                                                                                                                           |
|   |   |                                                                                                                                                                                                              |
| 32.1   |   | Certification                Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant                to Section 906 of the Sarbanes-Oxley Act of 2002                                                          |
|   |   |                                                                                                                                                                                                              |
| 32.2   |   | Certification                of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |

----

**SIGNATURES**

|   | /s/                Charles S. Conoley                            |
|--------|------------------------------------------------------------------|
|   | Charles                S. Conoley                                |
|   | President                and Chief Executive Officer             |
|   | (Principal                Executive Officer)                     |
|   |                                                             |
|   | /s/                Kathleen M. Jepson                            |
|   | Kathleen                M. Jepson                                |
|   | Senior                Vice President and Chief Financial Officer |
|   | (Principal                Financial and Accounting Officer)      |

----