Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (February 2015)
32 slides from Horizon Bancorp's investor presentation, Feb 11, 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: Who We Are
HORIZON‘ _HORIZO! BANK Who We Are RCE PT ON A
Slide 4: Company Profile
* Company Profile Headquartered in Michigan City, IN31 Locations Throughout Indiana and Michigan$2.1 Billion in AssetsMarket Cap. $209 MillionOwnership9% Insiders12% Employee Benefit Plans36% Institutional * Market data as of February 2, 2015; financial data as of December 31, 2014
Slide 5: Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Slide 6: Four Key Revenue Streams
Retail BankingBusiness BankingMortgage BankingWealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles * Four Key Revenue Streams
Slide 7: Horizon's Story
Horizon’s Story Steady GrowthSuperior ReturnsFinancial StrengthConsistent Performance *
Slide 8: 2014 Highlights
HORIZON‘ _HORIZO! BANK 2014 Highlights RCE PT ON A
Slide 9: 2014 Highlights
2014 Highlights * Surpassed $2 Billion in AssetsTotal Loan Growth of 29% (17% organic)Commercial Loan Growth of 33% (20% organic)14% Growth in Wealth Management RevenueClosed SCB Bancorp, Inc. (“Summit”) Acquisition on April 3rd, 2014Initiated Indianapolis Mortgage Presence by Acquiring First Indian
Slide 10: Rebounded From Slow Start to 2014
Rebounded From Slow Start to 2014 * 2014 Cumulative Net Income by Quarter Non-Core Items (1) Non-Core Items (1) 2013 $4.3 million 2014 $1.6 million (1) Non-core items include interest income from acquisition related purchase accounting adjustments, securities gains and one-time expenses related to S
Slide 11: Balanced Growth in 2014
Balanced Growth in 2014 * Assets ($ Mil.) Loans ($ Mil.) Deposits ($ Mil.)
Slide 12: Robust Organic Loan Growth in 2014
Robust Organic Loan Growth in 2014 * Loan Type(In Millions) 12/31/14 AcquiredLoans 4/3/14 12/31/13 2014 Organic Growth 2014 Organic Growth Commercial $674 ($70) $505 $99 20% Residential Mtg. $255 ($44) $186 $25 14% Consumer $320 ($10) $280 $31 11% Mtg. Warehouse $129 - $98 $31 32% Total Loans $1,379
Slide 13: Summit Community Bank Acquisition Adds Value
* Summit Community Bank Acquisition Adds Value Acquisition Metrics(1)(2) Acquisition Metrics(1)(2) Deal Value (“DV”) $18.9 mil. DV/ Tg. Book Value 120.5% DV/ LTM Earnings 11.1x Core Deposit Prem. 2.8% Closed on April 3, 2014Illustrates Focus on Larger Markets with Growth PotentialFour Experienced Le
Slide 14: Horizon's Growth Story
HORIZON‘ _HORIZO! BANK Horizon’s Growth Story RCE PT ON A
Slide 15: A Company on the Move
A Company on the Move OrganicExpans.(7) St. JosephSouth BendElkhart Lake County Kalamazoo IndianapolisCarmel M&A(6) Anchor Mortgage Alliance Bank American Trust Heartland 1st MortgageSummit * Assets ($ Mil.) $721 $2,077 Loans($ Mil.) $548 $1,379 Deposits($ Mil.) $489 $1,482 Branches 7 31 9.2% CAGR 8
Slide 16: Growth Opportunities in All Directions
Growth Opportunities in All Directions * Kalamazoo, Lansing & St. JosephPopulation: 879,000Deposits: $10 billion South Bend, Elkhart & GoshenPopulation: 467,000Deposits: $7 billion Indianapolis & Johnson CountyPopulation: 1.4 millionDeposits: $30 billion Lake & Porter CountiesPopulation: 658,000Depo
Slide 17: Solid Historical Earnings
2000 – 2014 CAGR: 11.8% In Millions Net Income History * Solid Historical Earnings
Slide 18: Investing in Commercial Lenders Creates Growth
* Investing in Commercial LendersCreates Growth Commercial Loan Balances
Slide 19: Balanced Risk In Commercial Portfolio
* Balanced Risk In Commercial Portfolio Commercial Loan Composition as of December 31, 2014
Slide 20: Growth Markets Thriving
Kalamazoo and Indianapolis Loan Balances * Growth Markets Thriving 2014 Growth: 43.1%
Slide 21: Shift to Commercial
December 31, 2014 December 31, 2008 In Millions 2008 2014 CAGR Commercial $311 $674 15.1% Real Estate $291 $384 5.2% Consumer $280 $321 2.5% Total $882 $1,379 7.7% * Shift to Commercial
Slide 22: Strong Low Cost Deposit Growth
December 31, 2008 December 31, 2014 Strong Low Cost Deposit Growth * In Millions 2008 2014 CAGR NIB $84 $268 23.6% Other Trans. $429 $931 13.8% CDs $329 $284 -2.6% Total $842 $1,483 9.9%
Slide 23: Disciplined Credit Culture
* NPLs/ Loans Disciplined Credit Culture
Slide 24: Why Invest In Horizon
HORIZON‘ _HORIZO! BANK Why Invest In Horizon ACCEPT bP OcN AL SvECR Val Coe
Slide 25: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 Steady Growth in Net Book Value & EPS DividendsUninterrupted Dividends for more than 25 YearsDividend Increases Aligned with Earnings GrowthImproving LiquidityStock Splits in 2001, 2003, 2011 and 2012Common Stock Issued in Heartland and Summit AcquisitionsRussell
Slide 26: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance Top 200 Community Banks for Financial Performance Six Consecutive Years, 2008 - 2013US Banker & ABA MagazinesTop 10% of Community BanksAnnual Community Bankers Cup, 2012 & 2013Raymond JamesKBW Bank Honor Roll2011 & 2012 *
Slide 27: 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 - Twelve out of Last Thirteen YearsThe News Dispatch Readers PollBest Bank for Obtaining a Business LoanNorthwest Indiana Bu
Slide 28: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the MarketFor Total Shareholder Return As of February 2, 2015; 2015 estimated EPS of $2.16 is the mean estimate from 3rd party research analystsSNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. * Horizon Bancorp: 5-Year Total Return Comparison P/2015 Es
Slide 29: Thank You for Your Investment in Horizon Bancorp
Thank Youfor Your Investment inHorizon Bancorp
Slide 30: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 31: Appendix
HORIZON‘ _HORIZO! BANK Appendix RCE PT ON A
Slide 32: Non-GAAP Reconciliations
HORIZON Non-GAAP Reconciliations Non-GAAP Reconciliation of Net Income (Dollar Amounts in Thousands Exeept per Share Data) ‘Twelve Months Ended December 31 2014 2013 (Unaudited) Non-GAAP Reconciliation of Net Income Net income as reported S$ 18101 $ 19,876 Summit expenses 1,335, q ‘Tax effect (467)
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