Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (July 2013)
29 slides from Horizon Bancorp's investor presentation, Jul 30, 2013
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: Company Profile, Market Information and Leadership Team
Insiders 8% Employee Benefit Plans 18% Institutional Investors 26% Name, Title Yrs. Experience Craig M. Dwight, Chairman & CEO 34 Thomas H. Edwards, President & COO 37 Mark E. Secor, CFO 25 James D. Neff, Corp. Secretary 34 Shares Outstanding 8.6 million Market Cap $205 million Dividend Yield 1.7% P
Slide 4: Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Slide 5: Locations and Considerable Opportunity for Growth
29 Locations and Considerable Opportunity for Growth Proposed Carmel Branch *
Slide 6: Deposit Market Share by County and State
Horizon Counties Rank # of Branches Deposits (In millions) Deposit Market Share La Porte, IN 1 4 $545 33.3% Porter, IN 6 5 $244 9.3% Johnson, IN 1 5 $221 13.0% Berrien, MI 4 5 $136 7.5% Lake, IN 14 5 $107 1.4% Kalamazoo, MI 15 1 $11 0.4% St. Joseph, IN 12 1 $9 0.2% Elkhart, IN 13 2 $8 0.4% Marion, I
Slide 7: Earnings Continue to Improve For Banks in Indiana & Michigan
Earnings Continue to Improve For Banks in Indiana & Michigan Year Indiana (In millions) Michigan (In millions) 2012 $648 $763 2011 $487 $260 2010 $267 -$321 2009 -$101 -$663 2008 -$57 -$2,129 2007 $442 $896 2006 $525 $2,195 Source: UBPR for States of IN & MI Commercial Banks Only *
Slide 8: Local Economies Improving
Source: U.S. Bureau of Labor Statistics; Unemployment rate is not seasonally adjusted in order to compare county vs. state and national data Local Economies Improving Horizon Counties 2006 Baseline Recession Peak May 2013 Peak to May 2013 Change Johnson, IN 3.7% 9.6% 6.8% -3.1% Kalamazoo, MI 4.9% 11
Slide 9: What Got Us Here Today
HORIZON _HORIZOK BANK What Got Us Here Today
Slide 10: Recent Highlights
Recent Highlights Highest Quarterly and Six-Months Earnings in Horizon’s History for the Period Ended June 30, 2013 Surpassed $500 Million in Commercial Loan Balances in June 2013 Two Dividend Increases and 3:2 Stock Split in 2012 Successful Merger & Integration of Heartland Community Bank Opened Th
Slide 11: Company on the Move
Mortgage Warehousing Established Entered St. Joseph Michigan Market Entered South Bend and Elkhart Market Acquired Alliance Bank Entered Lake County Market Acquired American Trust Bank Entered Kalamazoo Michigan Market Entered Indianapolis Market Acquired Heartland Community Bank Acquired Anchor Mor
Slide 12: Horizon's Story
Horizon’s Story Steady Growth Superior Returns Financial Strength Consistent Performance *
Slide 13: Record Earnings: Thirteen Consecutive Years
Record Earnings “Thirteen” Consecutive Years 2000 – 2012 CAGR: 14.6% In Millions 86% Increase Net Income History *
Slide 14: More Efficient and Better Returns than Our Peers
Source: SNL Financial; Peer Group – SNL U.S. Bank Index $1 Billion - $5 Billion in Assets, Median out of 147 Companies More Efficient and Better Returns than Our Peers Efficiency Ratio vs. Peers ROACE vs. Peers *
Slide 15: Loan Mix Better Positioned For Rising Rates
June 30, 2013 Loan Composition December 31, 2008 Loan Composition Loan Mix Better Positioned For Rising Rates Commercial 11.3% Mtg. Warehouse 5.2% Real Estate 1.9% Consumer (0.2%) 2008 – YTD CAGR *
Slide 16: Investment in Commercial Lenders Creates Growth
Am Tru $15.1mm Heartland $70.3mm Commercial Loan Growth June 30, 2013 Commercial Loan Composition 8 15 26 2004 2012 2010 2006 2002 2003 2008 19 Commercial Loan Officer Headcount * Investment in Commercial Lenders Creates Growth
Slide 17: Growth Markets Thriving
Growth Markets Thriving Kalamazoo Loan and Deposit Growth * * Month averages Indy Loan and Deposit Growth * *
Slide 18: Mortgage Business Built for the Long-Term
Mortgage Loan Volume Volume & Composition: Three Months Ending Mortgage Business Built for the Long-Term Mortgage Loan Officer Headcount 6 23 32 16 *
Slide 19: Strong Growth in Low Cost Deposits
December 31, 2008 Deposit Composition June 30, 2013 Deposit Composition Strong Growth in Low Cost Deposits Nonint. Bearing 23.2% MMDA & Savings 19.5% IB Demand 11.7% CDs (1.2%) 2008 – YTD CAGR *
Slide 20: Sound Credit Culture
Sound Credit Culture Net Charge-offs and Provisions NPAs/ Loans + OREO * Source: SNL Financial; Peer Group – SNL U.S. Bank Index $1 Billion - $5 Billion in Assets, Median out of 147 Companies
Slide 21: What Will Get Us There Tomorrow
What Will Get Us There Tomorrow *
Slide 22: Balanced & Complementary Business Model
Balanced & Complementary Business Model Business Banking Retail Banking Wealth Management Retail Mortgage Banking Mortgage Warehousing Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles *
Slide 23: Focus is on Organic Growth
Focus is on Organic Growth People First - Our Employees Get Things Done Focus on Happy Employees Align Pay with Results Measure Success and Growth Beat Last Year Provide Employees the Products and Tools to be Successful Continued Investment in Growth Markets Indy/Central Indiana Kalamazoo Customer S
Slide 24: Seeking M&A Opportunities
Seeking M&A Opportunities Disciplined and Focused Approach Must Meet Internal Targets Considerations Include: EPS Accretion TBV Dilution/Earnback Internal Rate of Return Seeking Indiana and Southwest Michigan Partners Larger MSAs Desired Market Growth Potential Fill in Market Gaps Horizon is an Attr
Slide 25: Why Invest in Horizon
HORIZON _HORIZOK BANK Why Invest in Horizon
Slide 26: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 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 Acquisition Steady Growth in Net Book Value & EPS Russell 2000 I
Slide 27: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance Ranked in the Top 200 Community Banks for Financial Performance for the Years 2008, 2009, 2010, 2011 & 2012 US Banker & ABA Magazines KBW Bank Honor Roll (2nd Consecutive Year) Top 10% of Community Banks Raymond James First Annual Community Bankers Cup, 2013
Slide 28: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the Market For Total Shareholder Return As of July 22, 2013 SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. SNL Midwest U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe headquartered in IA, IN, IL, KS, KY, MI, MN, MO, ND, NE, OH
Slide 29: Q&A
A NASDAQ Traded Company - Symbol HBNC Q&A