Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Shareholder Meeting (May 2014)
31 slides from Horizon Bancorp's shareholder meeting presentation, May 8, 2014
Slide 1: Welcome to Horizon Bancorp's 2014 Annual Meeting
Welcome to Horizon Bancorp’s 2014 Annual Meeting 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: Company Profile and Performance Review
Company Profile and Performance Review Mark E. Secor EVP & Chief Financial Officer
Slide 4: Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Slide 5: Company Profile
* Headquartered in Michigan City, IN 31 Locations and Considerable Opportunity for Growth $1.8 Billion in Assets 14 Years of Record Earnings Market Cap. of $184 million Stock Ownership 9% Insiders 13% Employee Benefit Plans 31% Institutional Company Profile * Market data as of May 5, 2014; financial
Slide 6: Lower Unemployment Creates Loan Growth
Source: U.S. Bureau of Labor Statistics, seasonally adjusted Indiana, Michigan and National Unemployment Rates Lower Unemployment Creates Loan Growth *
Slide 7: Complementary Revenue Streams Diversifies Risk
Complementary Revenue Streams Diversifies Risk Retail Banking Business Banking Mortgage Banking Wealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles *
Slide 8: Record Earnings: Fourteen Consecutive Years
Record Earnings “Fourteen” Consecutive Years 2000 – 2013 CAGR: 13.6% In Millions Net Income History *
Slide 9: Earnings Growth Resilient to Mortgage Volatility
* Gain on Sale of Loans & Net Income Earnings Growth Resilient to Mortgage Volatility
Slide 10: First Quarter Earnings Volatility
First Quarter Earnings Volatility First Quarter Net Income *
Slide 11: Shift to Commercial: Loan Composition
March 31, 2014 Loan Composition December 31, 2008 Loan Composition In Millions 2008 1Q’14 CAGR Commercial $311 $529 10.6% Real Estate $291 $292 0.1% Consumer $280 $280 0.0% * Shift to Commercial
Slide 12: Strong Low Cost Deposit Growth
December 31, 2008 Deposit Composition March 31, 2014 Deposit Composition Strong Low Cost Deposit Growth 2008 – 1Q’14 CAGR 2008 – 1Q’14 CAGR Nonint. Bearing 22.1% MMDA & Savings 17.9% IB Demand 11.9% CDs (3.2%) *
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, 2014, Successful Conversion on April 26, 2014 Illustrates Horizon’s Focus on Lar
Slide 14: Summit Contribution
* Summit Contribution In Millions(1) Horizon Summit Combined Assets $1,807 $154 $1,961 Commercial Loans $529 $75 $604 Loans, net $1,090 $129 $1,219 Deposits $1,356 $119 $1,475 Common Shares 8.7 .6 (2) 9.3 Financial data as of March 31, 2014; does not include purchase accounting adjustments Horizon B
Slide 15: Horizon's Growth Story
Horizon’s Growth Story Thomas H. Edwards President *
Slide 16: A Company on the Move
A Company on the Move Organic Expans. (8) St. Joseph South Bend Elkhart Lake County Kalamazoo Indianapolis Carmel Grand Rapids M&A (6) Anchor Mortgage Alliance Bank American Trust Heartland 1st Mortgage Summit * Total Assets ($mm) $721 $1,807 Full Service Branches 7 31
Slide 17: Growth on the Horizon
Growth on the Horizon 1Q’14 Commercial Loan Growth 18.6% Annualized Acquired Summit Community Bank, East Lansing, Michigan Acquired 1st Mortgage of Indiana, Indianapolis, Indiana Downtown Indianapolis Branch Opened Branch Expansion Plans *
Slide 18: Growth Opportunities in All Directions
Growth Opportunities in All Directions * Grand Rapids, Kalamazoo, Lansing & St. Joseph Population: 1.7 million Deposits: $26 billion South Bend, Elkhart & Goshen Population: 466,764 Deposits: $7 billion Indianapolis & Johnson County Population: 1.3 million Deposits: $30 billion Lake & Porter Countie
Slide 19: Investing in Commercial Lenders Creates Growth
* Investing in Commercial Lenders Creates Growth Commercial Loan Balances * Balanced Risk In Commercial Portfolio Commercial Loan Composition
Slide 20: Growth Markets Thriving
Kalamazoo and Indianapolis Loan Balances * Growth Markets Thriving $201 Total
Slide 21: Balanced Risk In Commercial Portfolio
* Balanced Risk In Commercial Portfolio Commercial Loan Composition
Slide 22: Investing in Consumer Loan Growth
Investing in Consumer Loan Growth Experienced Leader Hired to Grow Portfolio Additional Resources Allocated to Indirect Lending Increased Emphasis on Cross Selling Employee Incentive Program – Lots of Loans “LOL” Expanded Product Offerings *
Slide 23: Exceptional Service Guarantees
“Exceptional Service” Guarantees Consumer: Loan Decision in 15 Minutes or… Horizon Pays $125 Towards Closing Costs Business(1) Loan Decision by the Next Business Day or… Horizon Pays $250 Towards Closing Costs Mortgage New Purchase Home Loans Closed in 30 Days or… Horizon Pays $500 Towards Closing C
Slide 24: Horizon's Story
Horizon’s Story Steady Growth Superior Returns Financial Strength Consistent Performance *
Slide 25: Why Invest In Horizon
* Why Invest In Horizon Craig M. Dwight Chairman & CEO
Slide 26: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 Steady Growth in Net Book Value & EPS Dividends Uninterrupted Dividends for more than 25 Years Dividend Increases Aligned with Earnings Growth Improving Liquidity Stock Splits in 2001, 2003, 2011 and 2012 Common Stock Issued in Heartland and Summit Acquisitions Ru
Slide 27: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance Top 200 Community Banks for Financial Performance Six Consecutive Years, 2008 - 2013 US Banker & ABA Magazines Top 10% of Community Banks Annual Community Bankers Cup, 2012 & 2013 Raymond James KBW Bank Honor Roll 2011 & 2012 *
Slide 28: 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 Friend Independent Survey Best Bank - Eleven out of Last Twelve Years The News Dispatch Readers Poll Best Bank for Obtaining a Business Loan Northwest Indian
Slide 29: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the Market For Total Shareholder Return As of May 5, 2014 SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. SNL U.S. Bank $1B-$5B: Includes all Major Exchange Banks in SNL's coverage universe with $1B to $5B in assets as of most recent financial data. *
Slide 30: Thank You for Your Investment in Horizon Bancorp
Thank You for Your Investment in Horizon Bancorp
Slide 31: A NASDAQ Traded Company - Symbol HBNC
* A NASDAQ Traded Company - Symbol HBNC