Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Merger or Acquisition (February 2016)
12 slides from Horizon Bancorp's merger presentation, Feb 5, 2016
Slide 1: Horizon Bancorp announces the acquisition of Kosciusko Financial, Inc.
Horizon Bancorp announces the acquisition of Kosciusko Financial, Inc. and its wholly-owned subsidiary, Farmers State BankFebruary 5, 2016
Slide 2: Forward Looking Statements
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
Slide 3: Additional Information for Shareholders
ADDITIONAL INFORMATION FOR SHAREHOLDERS In connection with the proposed merger, Horizon will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of Kosciusko Financial, Inc. (“Kosciusko”) and a Prospectus of Horizon, as well as other relevant documents concerni
Slide 4: Farmers State Bank Overview
* Farmers State Bank Overview Establ. 1892 in Mentone, INFive Full-Service Locations$148 Million in Assets$106 Million in Loans $123 Million in Deposits$1.1 Million 2015 Net Income0.07% NPAs/Assets Financials as of December 31, 2015
Slide 5: Merger Highlights
* Merger Highlights Strategic Financial Operational Aligned with Horizon’s plan to expand in the states of Indiana and MichiganScalable platform in the vibrant market of Kosciusko County, IndianaBolsters existing presence in northeast IndianaContinued revenue diversificationStrong core deposit base
Slide 6: Pro Forma Franchise Locations Throughout Indiana and Michigan
* Pro Forma Franchise 51 Locations Throughout Indiana and Michigan$2.8 Billion in Assets$1.9 Billion in Loans$2.0 Billion in Deposits$1.2 Billion in Assets Under ManagementMarket Cap. $300 Million Horizon and Kosciusko company financials and pro forma analysis, excluding merger adjustments
Slide 7: Kosciusko County Provides Opportunity
* Kosciusko County Provides Opportunity Source for demographic data is Nielson. Source for unemployment rate is the U.S. Department of Labor. Orthopedic Capital of the WorldZimmer, Inc.Biomet, Inc.DePuy Synthes, Inc.Medtronic Spinal & BiologicsSymmetry Medical, Inc.Strong Agriculture Production, Pro
Slide 8: Merger Summary
* Based on Horizon’s closing price of $23.99 as of February 3, 2016 Merger Summary Horizon Bancorp Acquiring Kosciusko Financial Horizon Bancorp Acquiring Kosciusko Financial Consideration Mix (1) 65% stock, 35% cash Consideration Structure 3.0122 HBNC shares or $81.75 in cash for each outstanding K
Slide 9: Transaction Pricing
* Source: SNL Financial LCNationwide bank transactions announced after 12/31/2014 with target’s assets between $100 million and $300 million, LTM return on average equity between 4.00% and 10.00% and NPAs/assets less than 2.00%, excluding transactions where pricing information is unavailable Transac
Slide 10: Transaction Assumptions
* Transaction Assumptions Category Assumption Cost saves 45% fully phased-in of which 65% realized in 2016 1x after-tax charges $2.0 million Non-accretable loan mark $2.1 million or 2.0% of total loans Accretable loan mark $1.7 million or 1.6% of total loans Core deposit intangibles $1.8 million or
Slide 11: Horizon: A Company on the Move
Horizon: A Company on the Move OrganicExpans.(7) St. JosephSouth BendElkhart Lake County Kalamazoo Indianapolis Carmel M&A(8) Anchor Mortgage Alliance Bank American Trust Heartland 1st MortgageSummitPeoplesKosciusko * Assets ($ Mil.) $721 $2,794 Loans($ Mil.) $548 $1,861 Deposits($ Mil.) $489 $1,994
Slide 12: If you have questions please contact
If you have questions please contact:Mark SecorChief Financial Officer515 Franklin SquareMichigan City, IN 46360(219) 873-2611
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