SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

____________________

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004
Commission File No. 333-71773

HORIZON BANCORPORATION, INC.
(Exact name of small business issuer as specified in its charter)

|Florida
(State of Incorporation) | 65-0840565
(I.R.S. Employer Identification No.)
|-------------------------------- | -----------------------------------------------

900 53rd Avenue East, Bradenton, Florida 34203(Address of Principal Executive Offices)

(941) 753-2265(Issuer's Telephone Number, Including Area Code)

N/A(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Check whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X    No  ___

APPLICABLE ONLY TO CORPORATE ISSUERS:  Indicate the number of shares outstanding of each of the issuer's classes of common equity as of the latest practicable date.

Common stock, par value $.01 per share, 1,498,599 shares issued and outstanding as of November 11, 2004.



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

Horizon Bancorporation, Inc.
Bradenton, Florida
Balance Sheets

|ASSETS                                                                                                                                                                                        | (Unaudited)
September 30,2004                                      | (Unaudited)
December 31,2003                               
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | -----------------------------------------------------------
|Cash and due from banks
Federal funds sold
Total cash and cash equivalents                                                                                                                    | $4,783,637
_______0
4,783,637                                      | $2,938,786
_0
2,938,786                                    
|Securities:                                                                                                                                                                                   |                                                                    |                                                            
|Securities available for sale, at fair value 
Loans, net
Property and equipment, net
Other assets
       Total Assets                                                                         | 13,187,631
96,944,329
1,998,830
_584,971
$117,499,398              | 10,878,814
73,549,152
1,967,821
__866,338
$90,200,911      
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                         
|Liabilities:
   Non-interest bearing deposits
   Interest bearing deposits
   Total deposits
   Borrowings
Other liabilities
     Total Liabilities                                           | $9,383,64499,383,423
108,767,067
1,300,000
___268,597
$110,335,664 | $7,408,89374,156,847
81,565,740
2,000,00094,930
$83,660,670
|Commitments and contingencies                                                                                                                                                                 |                                                                    |                                                            
|Stockholders' Equity:
Common stock, $.01 par value, 25,000,000 shares authorized, 1,498,599 and 1,493,448 shares issued and outstanding at Sept. 30, 2004 and December 31, 2003, respectively | $14,986                                                            | $14,934                                                    
|Paid-in-capital                                                                                                                                                                               | 8,072,254                                                          | 8,039,148                                                  
|Retained (deficit)                                                                                                                                                                            | (900,511)                                                          | (1,474,364)                                                
|Accumulated other comprehensive income                                                                                                                                                        | ___(22,995)                                                        | (39,477)                                                   
|Total Stockholders' Equity                                                                                                                                                                    | _7,163,734                                                         | 6,540,241                                                  
|Total Liabilities and Stockholders' Equity                                                                                                                                                    | $117,499,398                                                       | $90,200,911                                                



Refer to notes to the consolidated financial statements.



Horizon Bancorporation, Inc.
Bradenton, Florida
Consolidated Statements of Operations (Unaudited)

|                                                                                                                                                                                                                                     | For the three monthsended September 30,                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------
|                                                                                                                                                                                                                                     | 2004                                                                     
|Interest and fees on loans and investments                                                                                                                                                                                           | $1,707,667                                                               
|Interest expense                                                                                                                                                                                                                     | 577,488                                                                  
|Net interest income                                                                                                                                                                                                                  | $1,130,179                                                               
|Provision for loan losses                                                                                                                                                                                                            | 120,212                                                                  
|Net interest income after provision for loan losses                                                                                                                                                                                  | $1,009,967                                                               
|Other income:                                                                                                                                                                                                                        |                                                                          
|Service fees on deposit accounts                                                                                                                                                                                                     | $42,053                                                                  
|Gain on sale of assets                                                                                                                                                                                                               | 35,734                                                                   
|Gain (loss) on settlement of securities                                                                                                                                                                                              | -  -                                                                     
|Other income                                                                                                                                                                                                                         | 11,794                                                                   
|Total other income                                                                                                                                                                                                                   | $89,581                                                                  
|Operating expenses:
Salaries and wages
Employee benefits
Depreciation and amortization
Legal and professional
Insurance expense
Rent
Regulatory assessments
Data processing
Advertising and promotional
Miscellaneous other expenses | $308,812
92,098
46,653
23,739
17,106
26,066
11,360
61,996
17,546
_129,700
|Total operating expenses                                                                                                                                                                                                             | $735,076                                                                 
|Net income before taxes                                                                                                                                                                                                              | $364,472                                                                 
|Income taxes                                                                                                                                                                                                                         | 55,000                                                                   
|Net income                                                                                                                                                                                                                           | $309,472                                                                 
|Basic income per share                                                                                                                                                                                                               | $.20                                                                     
|Diluted income per share                                                                                                                                                                                                             | $.19                                                                     

Refer to notes to the consolidated financial statements.



Horizon Bancorporation, Inc.
Bradenton, Florida
Consolidated Statements of Operations (Unaudited)

|                                                                                                                                                                                                                                     | For the nine monthsended September 30,                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------
|                                                                                                                                                                                                                                     | 2004                                                                       
|Interest and fees on loans and investments                                                                                                                                                                                           | $4,689,642                                                                 
|Interest expense                                                                                                                                                                                                                     | 1,611,648                                                                  
|Net interest income                                                                                                                                                                                                                  | $3,077,994                                                                 
|Provision for loan losses                                                                                                                                                                                                            | 306,391                                                                    
|Net interest income after provision for loan losses                                                                                                                                                                                  | $2,771,603                                                                 
|Other income:                                                                                                                                                                                                                        |                                                                            
|Service fees on deposit accounts
Gain (loss) on sale of assets
Gain on settlement of securities
Other income                                                                                                                         | $129,812
(67,159)
-  -   35,553                                            
|Total other income                                                                                                                                                                                                                   | $98,206                                                                    
|Operating expenses:
Salaries and wages
Employee benefits
Depreciation and amortization
Legal and professional
Insurance expense
Rent
Regulatory assessments
Data processing
Advertising and promotional
Miscellaneous other expenses | $858,537
261,491
136,577
132,990
41,504
77,437
45,546
194,922
60,210431,741
|Total operating expenses                                                                                                                                                                                                             | $2,240,955                                                                 
|Net income before taxes                                                                                                                                                                                                              | $628,854                                                                   
|Income taxes                                                                                                                                                                                                                         | 55,000                                                                     
|Net income                                                                                                                                                                                                                           | $573,854                                                                   
|Basic income per share                                                                                                                                                                                                               | $.38                                                                       
|Diluted income per share                                                                                                                                                                                                             | $.36                                                                       

Refer to notes to the consolidated financial statements.



Horizon Bancorporation, Inc.
Bradenton, Florida
Consolidated Statements of Cash Flows (Unaudited)

|                                                                                                                                         | For the nine monthsended September 30,  
|---------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------
|                                                                                                                                         | 2003                                    
|Cash flows provided from operating activities                                                                                            | $1,600,716                              
|Cash flows from investing activities:                                                                                                    |                                         
|Available for sale securities:                                                                                                           |                                         
|Sale of securities                                                                                                                       | $               -  -                    
|Purchases                                                                                                                                | (3,506,527)                             
|Maturities and pay downs                                                                                                                 | 1,073,103                               
|(Increase) in loans, net                                                                                                                 | (23,701,568)                            
|Purchase of fixed assets                                                                                                                 | (155,358)                               
|Net cash used by investing activities                                                                                                    | $(26,290,350)                           
|Cash flows from financing activities:                                                                                                    |                                         
|Increase in deposits 
Decrease in borrowings
Proceeds from sale of
    346,038 shares of common stock
Exercise of stock options/warrants | $27,201,327
(700,000)
-  -   
____33,158
|Net cash flows provided by financing activities                                                                                          | $26,534,485                             
|Net increase (decrease) in cash and cash equivalents                                                                                     | $1,844,851                              
|Cash and cash equivalents at beginning of period                                                                                         | 2,938,786                               
|Cash and cash equivalents at end of period                                                                                               | $4,783,637                              

Refer to notes to the consolidated financial statements.





Horizon Bancorporation, Inc.
Bradenton, Florida
Consolidated Statements of Changes in Shareholders' Equity (Unaudited)
for the nine-month periods ended September 30, 2003 and 2004



|                                                                                                                | Common Stock | Paid inCapital | RetainedEarnings | Accumulated
Other
ComprehensiveIncome |                    
|--------------------------------------------------------------------------------------------------------------- | ------------ | -------------- | ---------------- | ------------------------------------- | -------------------
|                                                                                                                | Shares       | Par Value      | Total           
|Balance, December 31, 2002                                                                                      | 1,147,410    | $11,474        | $5,999,596       | $(1,782,633)                          | $32,806            
|Issuance of 246,038 shares through rights offering, net of selling expenses                                     | 246,038      | 2,460          | 1,440,552        | -  -                                  | -  -               
|Issuance of 100,000 shares through private offering, net of selling expenses                                    | 100,000      | 1,000          | 599,000          | -  -                                  | -  -               
|Comprehensive Income:Net income, nine-month period ended September 30, 2003                                     | -  -         | -  -           | -  -             | 191,544                               | -  -               
|Net unrealized loss on securities, nine-month period ended September 30, 2003
Total comprehensive income/(loss) | -  -
-  -    | -  -
-  -      | -  -
-  -        | -  -
191,544                          | (102,484)
(102,484)
|Balance, September 30, 2003                                                                                     | 1,493,448    | $ 14,934       | $8,039,148       | $(1,591,089)                          | $(69,678)          
|____________________________                                                                                    |              |                |                  |                                       |                    
|Balance, December 31, 2003                                                                                      | 1,493,448    | $14,934        | $8,039,148       | $(1,474,364)                          | $(39,477)          
|Exercise of 5,151 warrants                                                                                      | 5,151        | 52             | 33,106           | -  -                                  | -  -               
|Comprehensive Income:
Net income,
nine-month period 
ended September 30, 2004                                   | -  -         | -  -           | -  -             | 573,854                               | -  -               
|Net unrealized gains on securities, nine-month period ended September 30, 2004
Total comprehensive income       | -  -
-  -    | -  -
-  -      | -  -
-  -        | -  -
573,854                          | 16,482
16,482      
|Balance,
September 30, 2004                                                                                     | 1,498,599    | $ 14,986       | $8,072,254       | $(900,511)                            | $(22,995)          



Refer to notes to the consolidated financial statements.



Horizon Bancorporation, Inc.
Notes to Consolidated Financial Statements (Unaudited)
September 30, 2004

Note 1 - Basis of Presentation

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB.  Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring  accruals) considered  necessary  for a fair presentation have been included.  Operating results for the three and nine-month periods ended September 30, 2004 are not necessarily indicative of the results that may be expected for the year ending December 31, 2004.  These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Form 10-KSB for the year ended December 31, 2003.

Note 2 - Summary of Organization

Horizon Bancorporation, Inc., Bradenton, Florida (the "Company"), is a one-bank holding which owns the outstanding capital stock of Horizon Bank, Bradenton, Florida (the "Bank").  The Company commenced banking operations on October 25, 1999 when the Bank opened for business.  The Bank is primarily engaged in the business of obtaining deposits and providing commercial, consumer and real estate loans to the general public.  The Bank's depositors are each insured up to $100,000 by the Federal Deposit Insurance Corporation (the "FDIC") subject to certain limitations imposed by the FDIC.

The Company is authorized to issue up to 25.0 million shares of its $.01 par value per share common stock.  Each share is entitled to one vote and shareholders have no preemptive or conversion rights.  As of September 30, 2004, and December 31, 2003, there were 1,498,599 and 1,493,448 shares, respectively, of the Company's common stock issued and outstanding.  Additionally, the Company has authorized the issuance of up to 1.0 million shares of its $.01 par value per share preferred stock.  The Company's Board of Directors may, without further action by the shareholders, direct the issuance of preferred stock for any proper corporate purpose with preferences, voting powers, conversion rights, qualifications, special or relative rights and privileges which could adversely affect the voting power or other rights of shareholders of common stock.  As of September 30, 2004 and December 31, 2003, there were no shares of the Company's preferred stock issued or outstanding.

Note 3 - Recent Accounting Pronouncements



In December 2003, the FASB issued a revision of FIN 46.  The Revised Interpretation codifies both the proposed modifications and other decisions previously issued through certain FASB Staff Positions (FSPs) and supersedes the original Interpretation to include: (1) deferring the effective date of the Interpretation's provisions for certain variable interests, (2) providing additional scope exceptions for certain other variable interests, (3) clarifying the impact of troubled debt restructurings on the requirement to reconsider (a) whether an entity is a VIE or (b) which party is the primary beneficiary of a VIE, and (4) revising Appendix B of the Interpretation to provide additional guidance on what constitutes a variable interest.  The revised Interpretation is effective for financial statements of periods ending after March 15, 2004.  Adoption of the revised FIN 46 did not have an adverse effect on the Company's financial position, results of operations, or liquidity.

SFAS No. 149 "Amendment of Statement 133 on Derivative Instruments and Hedging Activities."  In April 2003, the FASB issued SFAS No. 149, which amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," resulting in more consistent reporting of contracts as either derivatives or hybrid instruments.  SFAS No. 149 is effective for contracts entered into or modified after June 30, 2003, and should be applied prospectively.  Adoption of SFAS No. 149 did not have a material impact on the Company's financial position, results of operations or liquidity.

SFAS No. 150 "Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity."  In May 2003, the FASB issued SFAS No. 150, which establishes standards for how certain financial instruments with characteristics of both liabilities and equity should be measured and classified.  Certain financial instruments with characteristics of both liabilities and equity will be required to be classified as a liability.  This statement is effective for financial instruments entered into or modified after May 31, 2003, and July 1, 2003 for all other financial instruments with the exception of existing mandatorily redeemable financial instruments issued by limited life subsidiaries that have been indefinitely deferred from the scope of the statements.  Adoption of SFAS 150 did not have a material impact on the Company's financial position, results of operations or liquidity.

Statement of Position 03-3 ("SOP 03-3"): "Accounting for Certain Loans or Debt Securities Acquired in a Transfer."  In December 2003, the American Institute of Certified Public Accountants ("AICPA") issued SOP 03-3.  SOP 03-3 requires loans acquired through a transfer, such as a business combination, where there are differences in expected cash flows and contractual cash flows due in part to credit quality be recognized at their fair value.  The excess of contractual cash flows over expected cash flows is not to be recognized as an adjustment of yield, loss accrual, or valuation allowance.  Valuation allowances cannot be created nor "carried over" in the initial accounting for loans acquired in a transfer on loans subject to SFAS 114, "Accounting by Creditors for Impairment of a Loan."  This SOP is effective for loans acquired after December 31, 2004, with early adoption encouraged.  The Company does not believe the adoption of SOP 03-3 will have a material impact on the Company's financial position, results of operations or liquidity.

In December 2003, the FASB issued a revision of SFAS No. 132, Employer's Disclosures about Pensions and Other Postretirement Benefits.  Most of the provisions of the revised statements are effective for fiscal years ending after December 15, 2003.  The Statement requires more detailed disclosures about plan assets, investment strategies, benefit obligations, cash flows, and the assumptions used in accounting for the plans.  Adoption of the revision to SFAS No. 132 did not have a material impact on the Company's financial position, results of operations or liquidity.

On December 11, 2003, the SEC Staff announced its intention to release a Staff Accounting Bulletin in order to clarify existing accounting practices relating to the valuation of issued loan commitments, including interest rate lock commitments, subject to Derivative Implementation Group Issue C-13, When a Loan Commitment is included in Scope of Statement 133.  The new guidance is expected to require all registrants to begin accounting for these commitments subject to SFAS No. 133 as written options that would be reported as liabilities until they are exercised or expire.  The provisions of this guidance are expected to be effective for loan commitments entered into after March 31, 2004.  Management adopted the provisions of this guidance effective April 1, 2004 and does not anticipate that the adoption will have a materially adverse effect on the Company's financial position, results of operations or liquidity.



Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations.

Critical accounting policies are defined as those that were reflective of significant judgments and uncertainties and could potentially result in materially different results under different assumptions and conditions.  Management believes that the most critical accounting policies upon which its financial condition depends, and which involve the most complex or subjective decisions or assessments are as follows:

Allowance for Loan Losses:  Arriving at an appropriate level of allowance for loan losses involves a high degree of judgment.  The Company's allowance for loan losses provides for probable losses based upon evaluations of known and inherent risks in the loan portfolio.  Management uses historical information to assess the adequacy of the allowance for loan losses as well as the prevailing business environment as it is affected by changing economic conditions and various external factors, which may impact the portfolio in ways currently unforeseen.  The allowance is increased by provisions for loan losses and by recoveries of loans previously charge-off, and is reduced by loans charged-off.  For an additional discussion of the Company's methodology of assessing the adequacy of the allowance for loan losses, see Note 2 in the Company's consolidated financial statements for the year ended December 31, 2003.

Income Taxes:  The Company estimates income tax expense based on the amount it expects to owe various tax authorities.  Accrued taxes represent the net estimated amount either due to or receivable from taxing authorities.  In estimating accrued taxes, management assesses the relative merits and risks of the appropriate tax treatments taking into account statutory, judicial and regulatory guidance in the context of its tax position.  Although the Company uses available information to record accrued income taxes, underlying estimates and assumptions can change over time as a result of unanticipated events or circumstances, such as changes in tax laws influencing the Company's overall tax position.

Overview

The Company's results of operations are largely dependent on interest income, which is the difference between interest earned on both loans and securities and interest paid on deposits and borrowings.  The results of operations are also affected by the level of income/fees from loans, deposits, borrowings, as well as operating expenses, the provision for loan losses, the impact of federal and state income taxes, and the relative levels of interest rates and economic activity.

For calendar year 2004, the Company expects continued compression in the net yield on earning assets. This is due to the fact that interest rates are expected to increase in 2004 at a time when the Company is liability sensitive.  Management plans to mitigate the impact of the continued compression with prudent asset growth, non-interest income, growth generation and expense control.  Additionally, there are a number of initiatives that are expected to contribute to 2004 and beyond.  These initiatives include:

- identification of future location for expansion, whether through branching or loan production offices; and
- investment in additional new business development capabilities and process improvements within the lending area.

Results of Operations

For the three-month period ended September 30, 2004, net income amounted to $309,472, or $.19 per diluted share.  By comparison, net income for the three-month period ended September 30, 2003 amounted to $167,369, or $.12 per diluted share.  The primary reasons for the increase in net income was the net result of the following:

1. Net interest income increased from $764,638 for the three-month period ended September 30, 2003 to $1,130,179 for the three-month period ended September 30, 2004.  This increase is due to both higher average earning assets and a higher net interest yield.
2. Non-interest income for the three-month period ended September 30, 2004 was $89,581.  Non-interest income for the three-month period ended September 30, 2003 amounted to $161,035.  The reasons for the decrease in non-interest income are two-fold: (i) pricing on deposit products has become more competitive as the Bank is attempting to increase deposits in a significant manner; and (ii) gain on sale or settlement of assets has declined by approximately $62,000, from $97,000 for the three-month period ended September 30, 2003 to $35,000 for the three-month period ended September 30, 2004.
3. Non-interest expense increased from $644,550 for the three-month period ended September 30, 2003 to $735,076 for the three-month period ended September 30, 2004.  The majority of the above increase is due to the expanding asset-base.
4. Provision for loan losses for the three-month period ended September 30, 2004 and 2003 were $120,212 and $113,756, respectively.  The increase in the provision is due to higher loan balances.

Net income for the nine-month period ended September 30, 2004 amounted to $573,854, or $.36 per diluted share.  By comparison, for the nine-month period ended September 30, 2003, net income amounted to $191,544, or $.15 per diluted share.  Below is a brief discussion concerning the Company's operational results for the nine-month period ended September 30, 2004, as compared to the nine-month period ended September 30, 2003.

a.	Interest income, which represents interest received on interest earning assets, increased from $3,564,449 for the nine-month period ended September 30, 2003 to $4,689,642 for the nine-month period ended September 30, 2004, an increase of $1,125,193.  The cost of funds, which represents interest paid on deposits and borrowings, increased from $1,402,400 for the nine-month period ended September 30, 2003 to $1,611,648 for the nine-month period ended September 30, 2004, an increase of $209,248.  The material increase in interest income combined with a moderate increase in interest expense resulted in an increase in the net interest income from $2,162,049 for the nine-month period ended September 30, 2003 to $3,077,994 for the nine-month period ended September 30, 2004; this represents an increase of $915,945, or 42.3%.

Net interest yield, defined as net interest income divided by average interest earning assets, increased from 3.96% during the nine-month period ended September 30, 2003 to 4.12% during the nine-month period ended September 30, 2004.  This increase is due to management's efforts to expand margins.  Below is pertinent information concerning the yield on earning assets and the cost of funds for the nine-month period ended September 30, 2004.

(Dollars in '000s)

|Description                 | Avg. Assets/Liabilities | InterestIncome/Expense | Yield/Cost
|--------------------------- | ----------------------- | ---------------------- | ----------
|Federal funds               | $   1,120               | $       9              | 1.07%     
|Securities                  | 11,839                  | 425                    | 4.77%     
|Loans                       | 86,620                  | 4,256                  | 6.55%     
|Total                       | $99,579                 | $4,690                 | 6.28%     
|Borrowings                  | $   3,705               | $     42               | 1.51%     
|Transactional accounts      | 27,470                  | 284                    | 1.38%     
|Savings                     | 4,999                   | 45                     | 1.20%     
|CD's                        | 54,855                  | 1,241                  | 3.02%     
|Total                       | $91,029                 | $ 1,612                | 2.36%     
|Net interest income         |                         | $3,078                 |           
|Net yield on earning assets |                         | 4.12%                 

b.	For the nine-month period ended September 30, 2004, non-interest income amounted to $98,206, or .12% of average assets.  By comparison, non-interest income for the nine-month period ended September 30, 2003 amounted to $261,294, or .44% of average assets.  If one discounts the loss on sale/settlement of assets, because of their non-recurring nature, non-interest income for the nine-month period ended September 30, 2004 would have increased to $165,365, or .21% of average assets.  This result is below peer averages because the Bank is in a growth mode, and in an effort to maintain its growth in deposits, it aggressively prices its fees and charges on deposits.

c.	For the nine-month period ended September 30, 2004, non-interest expense amounted to $2,240,955, or 2.83% of average assets.  By comparison, for the nine-month period ended September 30, 2003, non-interest expense amounted to $2,015,718, or 3.42% of average assets.  This decrease (on a percentage basis) is primarily due to the improvement in operational efficiencies.

During the nine-month period ended September 30, 2004, the allowance for loan losses increased by $225,000, to $925,000.  The allowance for loan losses, as a percent of gross loans, remained constant at .94% at December 31, 2003 and September 30, 2004.  Management considers the allowance for loan losses to be adequate and sufficient to absorb possible future losses; however, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional provisions to the allowance will not be required.



Liquidity and Sources of Capital

Total assets increased by $27.3 million to $117.5 million during the nine-month period ended September 30, 2004.  More specifically, cash and cash equivalents increased by $1.8 million to $4.8 million; securities increased by $2.3 million to $13.2 million; loans increased by $23.4 million to $96.9 million; and all other assets decreased by $.2 million to $2.6 million.  To fund the $27.3 million increase in assets, deposits were increased by $27.2 million to $108.7 million; borrowings and other liabilities decreased by $.5 million to $1.5 million; and the capital accounts increased by $.6 million to $7.2 million.

Liquidity is the Company's ability to meet all deposit withdrawals immediately, while also providing for the credit needs of customers.  The September 30, 2004 financial statements evidence a satisfactory liquidity position as total cash and cash equivalents amounted to $4.8 million, representing 4.1% of total assets.  Investment securities, which amounted to $13.2 million or 11.2% of total assets, provide a secondary source of liquidity because they can be converted into cash in a timely manner.  The Bank is a member of the Federal Reserve System and maintains relationships with several correspondent banks and, thus, could obtain funds from those banks on short notice.  The Company's management closely monitors and maintains appropriate levels of interest earning assets and interest bearing liabilities, so that maturities of assets can provide adequate funds to meet customer withdrawals and loan demand.  The Company knows of no trends, demands, commitments, events or uncertainties that will result in or are reasonably likely to result in its liquidity increasing or decreasing in any material way.  The Bank maintains an adequate level of capitalization as measured by the following capital ratios and the respective minimum capital:

|                                   | Bank'sSeptember 30, 2004 | Minimum RegulatoryRequirement
|---------------------------------- | ------------------------ | -----------------------------
|Leverage ratio
Risk weighted ratio | 7.4%
10.6%               | 4.0%
8.0%                    

With respect to the leverage ratio, the regulators expect a minimum of 5.0% to 6.0% ratio for banks that are not rated CAMELS 1.  The Bank's leverage ratio of 7.4% and risk weighted ratio of 10.6% are above the required minimum for "adequately capitalized" banks.

The Company is not aware of any current recommendation by the regulatory authorities which, if implemented, would have a material effect on the Company's liquidity, capital resources, or results of operations.

The Company cautions readers of this report that any forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements.  Although the Company's management believes that its expectations of future performance are based on reasonable assumptions within the bounds of its knowledge of the Company's business and operations, there can be no assurance that actual results will not differ materially from their expectations.

Item 3 - Controls and Procedures

Based on an evaluation of the Company's disclosure controls and procedures performed by the Company's management within 90 days of the filing date of this report, the Company's Chief Executive Officer and Chief Financial Officer believe that the Company has appropriate disclosure controls and procedures to ensure that information required to be disclosed by the Company in its periodic reports is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

Since the date of such evaluation, there have been no significant changes in the Company's internal controls or in other factors that could significantly affect these controls, including any corrective actions with regard to significant deficiencies and material weaknesses.



PART II - OTHER INFORMATION

|Item 1. | Legal Proceedings.                                                                                                                             
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------
|        | There are no material pending legal proceedings to which the Company or the Bank is a party, or of which any of their property is the subject. 
|Item 2. | Changes in Securities.                                                                                                                         
|(a)
(b) | None.
None.                                                                                                                                    
|Item 3. | Defaults Upon Senior Securities.                                                                                                               
|        | None.                                                                                                                                          
|Item 4. | Submission of Matters to a Vote of Security Holders.                                                                                           
|        | None.                                                                                                                                          
|Item 5. | Other Information.                                                                                                                             
|        | None.                                                                                                                                          
|Item 6. | Exhibits and Reports on Form 8-K.                                                                                                              
|        | A. Exhibits:                                                                                                                                   
|        | 31.1 - Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                     
|        | 31.2 - Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                     
|        | 32.1 - Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
|        | 32.2 - Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
|        | B. Reports on Form 8-K:                                                                                                                        
|        | There were no reports on Form 8-K filed during the quarter ended September 30, 2004.                                                           



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|                        | HORIZON BANCORPORATION, INC.
(Registrant)
By: /S/ Charles S. Conoley
Charles S. Conoley
President and Chief Executive Officer
(Principal Executive Officer)
|----------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|                        | By: /S/ James J. BazataJames J. Bazata
Senior Vice President and Chief
Financial Officer (Principal Financial
and Accounting Officer)                      
|Date: November 10, 2004 |