Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (June 2015)
38 slides from Horizon Bancorp's investor presentation, Jun 30, 2015
Slide 1: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 2: Forward-Looking Statements
This presentation may contain forward-looking statements regarding the financial performance, business, and future operations of Horizon Bancorp and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contain
Slide 3: Mark E. Secor, Executive Vice President and CFO
Mark E. SecorExecutive Vice President Chief Financial Officer *
Slide 4: Who We Are
HORIZON‘ _HORIZO! BANK Who We Are EX Coe Pt ) O NA
Slide 5: Northern Indiana/Southwest Michigan… The Right Side of Chicago
Northern Indiana/Southwest Michigan… The Right Side of Chicago
Slide 6: Horizon at a Glance
* Horizon at a Glance * Market data as of June 26, 2015; financial data as of March 31, 2015
Slide 7: Four Key & Consistent Revenue Streams
Retail BankingBusiness BankingMortgage BankingWealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles * Four Key & Consistent Revenue Streams
Slide 8: Horizon's Story
Horizon’s Story Steady GrowthSuperior ReturnsFinancial StrengthConsistent Performance *
Slide 9: 1Q15 Highlights
HORIZON‘ _HORIZO! BANK 1Q15 Highlights Ex COE Pot ) ON AL SvECR Val Coe
Slide 10: Net Income and Diluted Earnings per Share
* Net Income and Diluted Earnings per Share Good Start to 2015 Change LQ YOY Net Inc. 8.3% 56.8% Dil. EPS 7.8% 44.7%
Slide 11: Loan Growth Drives First Quarter Results
* (In Millions)Loan Type 3/31/14 12/31/14 3/31/15 LQA Δ YOY Δ Commercial $528 $674 $695 13% 32% Residential Mtg. $189 $254 $260 10% 38% Consumer $280 $320 $326 8% 16% Mtg. Warehouse $102 $129 $178 154% 75% Total Loans $1,100 $1,362 $1,461 29% 33% Loan Growth Drives First Quarter Results
Slide 12: Peoples Bancorp Merger
HORIZON‘ _HORIZO! BANK Peoples Bancorp Merger Ex COE Pot ) ON AL SvECR Val Coe
Slide 13: Complementary Footprint and Increased Scale
* Horizon and Peoples company financials as of Mar. 31, 2015. Pro forma financials exclude merger adjustments. Horizon announced intention to close Peoples’ Middlebury, IN branch. Peoples’ market cap as of Feb. 18, 2015, the day prior to deal announcement. Pro forma market cap based on HBNC’s stock
Slide 14: Strategic, Financial and Operational Benefits
* Strategic Financial Operational Good Strategic Fit Aligned with plan to expand in Indiana and MichiganContinued revenue diversificationStrong core deposit franchise EPS accretion of 4.5% in 2016, first full yearInitial TBV dilution of $0.65 with five year earn backInternal rate of return over 20.0
Slide 15: Fair Pricing Metric
* Source: SNL Financial; financial data as of December 31, 2014 and market data as of February 18, 2015Nationwide bank and thrift transactions announced after 12/31/2012 with target’s assets between $200 million and $1 billion, tangible common equity to tangible assets between 10.0% and 15%, LTM ret
Slide 16: Thomas H. Edwards, President & Chief Credit Officer
Thomas H. EdwardsPresident & Chief Credit OfficerHorizon Bank *
Slide 17: Horizon's Growth Story
HORIZON‘ _HORIZO! BANK Horizon’s Growth Story Ex COE Pot ) ON AL SvECR Val Coe
Slide 18: Horizon: A Company on the Move
Horizon: A Company on the Move OrganicExpans.(7) St. JosephSouth BendElkhart Lake County Kalamazoo Indianapolis Carmel M&A(7) Anchor Mortgage Alliance Bank American Trust Heartland 1st MortgageSummitPeoples * Assets ($ Mil.) $721 $2,631 Loans($ Mil.) $548 $1,691 Deposits($ Mil.) $489 $1,823 Branches
Slide 19: Growth Opportunities in All Directions
Growth Opportunities in All Directions * Kalamazoo, Lansing & St. JosephPopulation: 883,000Deposits: $10 billion South Bend, Elkhart & Fort WaynePopulation: 835,000Deposits: $12 billion Indianapolis & Johnson CountyPopulation: 1.4 millionDeposits: $32 billion Lake & Porter CountiesPopulation: 657,00
Slide 20: Solid Historical Earnings
In Millions Net Income History * Solid Historical Earnings 10-year CAGR: 10%
Slide 21: Investing in Commercial Lenders Creates Growth
* Investing in Commercial LendersCreates Growth Commercial Loan Balances
Slide 22: Balanced Risk In Commercial Portfolio
* Balanced Risk In Commercial Portfolio Commercial Loan Composition as of March 31, 2015
Slide 23: Growth Markets Thriving
Kalamazoo and Indianapolis Loan Balances * Growth Markets Thriving 2014 Growth: 43%
Slide 24: Shift to Commercial Lending
March 31, 2015 December 31, 2008 In Millions 2008 1Q15 CAGR Commercial $311 $695 14% Real Estate $291 $439 7% Consumer $280 $326 2% Total $882 $1,461 8% * Shift to Commercial Lending
Slide 25: Strong Low Cost Deposit Growth
December 31, 2008 March 31, 2015 Strong Low Cost Deposit Growth * In Millions 2008 1Q15 CAGR NIB $84 $285 22% IB Trans. $429 $905 13% CDs $329 $274 -3% Total $842 $1,465 9%
Slide 26: Disciplined Credit Culture
* NPLs/ Loans Disciplined Credit Culture
Slide 27: Craig M. Dwight, Chairman, President & CEO
Craig M. DwightChairman, President & CEO *
Slide 28: Why Invest In Horizon
HORIZON‘ _HORIZO! BANK Why Invest In Horizon Ex COE Pot ) ON AL SvECR Val Coe
Slide 29: Consistent, Well Executed and Disciplined Business Strategy
Consistent, Well Executed and Disciplined Business Strategy Horizon is a Growth Story10-year Asset CAGR of 9%Seven Acquisitions and Seven Market Expansions Since 2000Capacity to Take Additional Market ShareHistorical Financial Performance Illustrates Ability to ExecuteHistorical Total Shareholder Re
Slide 30: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 Steady Growth in Net Book Value & Earnings Per ShareIncreased Liquidity Through Stock Splits and MergersUninterrupted Dividends for More than 25 YearsAdded to Nasdaq Community Bank Index in 2014Russell 2000 Index Since 2012 *
Slide 31: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance *
Slide 32: Highly Regarded In Our Communities
Highly Regarded In Our Communities * Community Relations Award Urban League of Northwest Indiana, Inc.Nine out of Ten Customers Would Refer a FriendIndependent SurveyBest Bank - Thirteen out of Last Fourteen YearsThe News Dispatch Readers PollBest Bank for Obtaining a Business LoanNorthwest Indiana
Slide 33: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the MarketFor Total Shareholder Return As of June 26, 2015; 2015 estimated EPS of $2.24 is the mean estimate from 3rd party research analystsSNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. * Horizon Bancorp: 5-Year Total Return Comparison P/2015 Est.
Slide 34: Thank You for Your Investment in Horizon Bancorp
Thank Youfor Your Investment inHorizon Bancorp *
Slide 35: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC *
Slide 36: Appendix
HORIZON‘ _HORIZO! BANK Appendix EX Coe Pt ) O NA
Slide 37: Merger Summary
* Based on Horizon’s closing price of $23.02 as of February 18, 2015 Merger Summary Horizon Bancorp Acquiring Peoples Bancorp Horizon Bancorp Acquiring Peoples Bancorp Deal Price per Share (1) $31.62 Consideration Structure 0.95 HBNC shares for each outstanding PBNI share; $9.75 in cash for each out
Slide 38: Transaction Assumptions
* Transaction Assumptions Category Assumption Cost saves 37% 1x after-tax charges $4.9 million Loan mark $3.5 million or 1.5% of total loans Core deposit intangibles $2.3 million or 1.0% of core deposits Branches One branch closing identified A NASDAQ Traded Company - Symbol HBNC A NASDAQ Traded Com