Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (August 2009)
39 slides from Horizon Bancorp's investor presentation, Aug 5, 2009
Slide 1: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward- looking statements regarding financial performance, business prospects, growth and operating strategies. For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Se
Slide 3: Horizon - Serving the Community Since 1873
HORIZON —_ Serving the Community Since 1873
Slide 4: Corporate Profile
*Based on price at the close of business on July 28, 2009 at $16.50 per share **Total assets as of June 30, 2009 Corporate Profile • Symbol HBNC • Shares Outstanding 3.3 Million Shares • Market Cap* $ 53 Million • Total Assets** $ 1.3 Billion • Ownership – Insiders 10.0% – ESOP 15.6% – Institutional
Slide 5: Current Locations
Current Locations Porter County Elkhart County
Slide 6: Unemployment Rates May 2009
State Average Unemployment Rates May 2009 IN 10.6% MI 14.1% IL 10.1% US 9.4% Non-Seasonally Adjusted Une ent Rate Below State Rate MEBEE Same as State Rate - 10.4 Above State Rate
Slide 7: Major Competitors
Major Competitors • Indiana – Chase – Fifth Third – PNC f/k/a National City – Centier – 1 st Source – La Porte Savings – Harris – First Midwest – Peoples Bank – Citizens Financial • Michigan – Chase – Fifth Third – Chemical – Flag Star – 1 st Source – Edgewater – New Buffalo Savings
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Record Earnings Nine Consecutive Years
Record Earnings Nine Consecutive Years
Slide 10: Favorable Trend for Comparative Net Income
Favorable Trend for Comparative Net Income First Six Months Six Months Ended June 30
Slide 11: Horizon Exceeds Peer Average in Efficiency
Peer Data Source: KBW Report dated January 2009 covering Indiana Publicly Traded Banks; peer data represents a peer average and is 2008 data for all periods reviewed. Horizon Exceeds Peer Average in Efficiency
Slide 12: Steady Earnings Growth Goes Unrewarded
Steady Earnings Growth Goes Unrewarded * Twelve month trailing fully diluted EPS
Slide 13: Relative Price Performance Over Time
Relative Price Performance Over Time
Slide 14: Horizon
HORIZON _HORIZO
Slide 15: Steady Asset Growth
Steady Asset Growth CAGR 11.0 %
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio June 30, 2004 June 30, 2009 Mortgage Warehouse 25% Commercial 34% Mortgage 18% Consumer 23% Mortgage Warehouse 18% Mortgage 17% Consumer 30% Commercial 35%
Slide 17: Low Percentage of Land Development Loans
“ Low Percentage ” of Land Development Loans As a Percent of Total Commercial Loans June 30, 2009 Owner Occupied RE $122.7 38% Non-Owner Occupied RE $97.4 31% Other $10.1 3% Development & Spec Land Loans $12.7 4% Construction -Spec Homes $3.6 1% Commercial & Industrial $66.4 21% Automotive/RV $5.6 2
Slide 18: Primarily a Secured Consumer Lender
Primarily a Secured Consumer Lender As Percent of Total Consumer Loans June 30, 2009 Other Direct $37.0 14% Home Equity Line of Credit $75.3 28% Home Equity Term $12.3 5% Indirect $147.6 53% Dollars in Millions
Slide 19: Mortgage Warehouse Loan Volume - Increasing
Mortgage Warehouse Loan Volume - Increasing In Billions In Millions
Slide 20: Conventional Mortgage Volume - Increasing
In Millions Conventional Mortgage Volume - Increasing
Slide 21: Deposit Mix 2004 to June 2009
$900 $800 $700 2 $600 FS =| 500 S $! S400 $300 $200 $100 $0 2004 2005 2006 2007 2008 June 30, 2009 G Non interest-bearing @NOW O Money market O Savings @ Consumer CD's G Business Investment Checking
Slide 22: Recent Growth Funded by Non-Core
Recent Growth Funded by Non-Core Total Funding
Slide 23: Horizon
HORIZON _HORIZO
Slide 24: Good Credit Culture
Good Credit Culture • Team of Seasoned Underwriters – Average Tenure > 20 years • Primarily an In Market and Full Recourse Lender • Secured Loans • Small Business Focus – Average Commercial Loan Size Approximately $250,000 • We Manage Lending Limits – House Limit $10 million – Legal Limit > $18 mill
Slide 25: Horizon Outperforms Peer Group
Horizon Outperforms Peer Group Non-Performing Loans Plus OREO to Gross Loans Plus OREO Source: Custom group of 23 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Reports
Slide 26: Non Performing Loans and Other Real Estate Owned
Non Performing Loans and Other Real Estate Owned Is Predominately Residential Properties June 30, 2009 In Millions
Slide 27: Increase Trend in Loan Charge-Offs
Increase Trend in Loan Charge-Offs Annualized Net Loan Losses to Average Total Loans Source: Custom group of 23 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Reports
Slide 28: Loan Charge-Offs by Type
Thousands $3,000 $2,800 $2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $- $(200) Loan Charge-Offs by Type il _o — Direct Indirect Home Equity Mortgage Commercial Warehouse Line of Credit | 02005 2006 2007 02008 Jan - June 2009 |
Slide 29: Horizon Out-Performs National Averages
Horizon Out-Performs National Averages For Consumer Indirect Installment Net Charge-Offs
Slide 30: Invest in Horizon
Invest in Horizon
Slide 31: Third Party - Testimonials
Third Party - Testimonials • Best Bank - The News Dispatch Readers Poll - Nine out of Last Ten Years • Best Trust Company - Northwest Indiana Times - Readers Poll • Family Friendly Work Policies - Clarion Award • Ranked in the Top 200 Community Banks for Financial Performance - US Banker Magazine -
Slide 32: Horizon Does Things Right
Horizon Does Things Right • Fiduciary Responsibility & Attitude • Expense Control - Before it Became Popular – No Executive Cars – Annual Report Cost Reduction • Bonus Plans Aligned with Shareholders • People First Location Second • Benchmarking Best Practices • Six Sigma
Slide 33: Indiana is a Great State
Indiana is a Great State • Indiana – Balanced Budget – Fully Funded Capital Improvement Plan – BP Expansion Plan - Lake County, Indiana • Illinois – Budget Deficits – Increase in Taxes – Chicago - - Higher Cost of Living • Michigan – Budget Deficits – Higher Unemployment
Slide 34: Stable Performance & Growth
Stable Performance & Growth • Stable Earnings Growth • Diversified Revenue Streams • Efficient Operations • Lake Michigan Corridor Primed for Growth • Super Regional Banks Cutting Back - Market Share Opportunities • Opportunities Increasing for Healthy Banks
Slide 35: Horizon is an Attractive Value
Horizon Bancorp Avg. - Indiana Banks Dividend Yield (as of 07/28/09) 4.1% 2.8% Price to Book (HBNC - Price as of 07/28/09 & Book Value as of Year-end 06/30/09) 64% 77.4% Price to Tangible Book (HBNC - Price as of 07/28/09 & Tangible Book Value as of Year-end 06/30/09) 70% 86.6% Price to Earnings (LT
Slide 36: Horizon Outperforms Bank Index - One Year
Horizon Outperforms Bank Index - One Year
Slide 37: Horizon Outperforms Bank Index - Ten Years
Horizon Outperforms Bank Index - Ten Years
Slide 38: Thank You
Thank You for Considering an Investment in Horizon Bancorp (HBNC)
Slide 39: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Horizon Bancorp — Investor Presentation (August 2009) on 6ix