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, Chief Financial Officer
Mark E. SecorExecutive Vice President Chief Financial Officer *
Slide 4: Horizon's Story
HORIZON — BAN BANK Horizon’s Story EX GEP TO NAL SvECR Val Coe
Slide 5: Corporate Profile
* Corporate Profile Financial data at June 30, 2016. Market data as of July 26, 2016 per SNL. Branch count and map excludes three LaPorte Bancorp branches to be consolidated upon conversion 4Q16. 54 Branches Across IN & MI$2.9 Billion in Assets ($3.4 Billion Post LaPorte Acquisition)$1.9 Billion in
Slide 6: Indiana and Michigan… The Right Side of Chicago
Indiana and Michigan… The Right Side of Chicago Illinois and Chicago-High Taxes & Living Costs-Lowest Credit Rating of 50 States-Unfriendly Business Environment
Slide 7: Four Key & Consistent Revenue Streams
Retail BankingBusiness BankingMortgage BankingWealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles * Four Key & Consistent Revenue Streams
Slide 8: Financial Highlights
HORIZON‘ _HORIZO! BANK Financial Highlights EX GEP TO NAL SvECR Val Coe
Slide 9: Strong Historical Earnings Growth
* Core net income and diluted EPS excludes one-time merger expenses and acquisition purchase accounting adjustments, gain on sale of securities and death benefit on bank owned life insurance.2012 results benefited from a record level of mortgage loan production volume and mortgage warehouse loan bal
Slide 10: Solid First Half of 2016
* Solid First Half of 2016 Core net income and diluted EPS excludes one-time merger expenses and acquisition purchase accounting adjustments, gain on sale of securities and death benefit on bank owned life insurance. %∆ YoY QoQ YTD Core Net Income 49% 27% 34% Core Diluted EPS 17% 21% 6%
Slide 11: Strong Loan and Deposit Growth
* Total Loans Total Deposits Δ 27% Δ 13% Δ 31% Δ 11% Strong Loan and Deposit Growth
Slide 12: Shift to Commercial Lending
June 30, 2016 December 31, 2010 ($ in Millions) 2010 2Q16 CAGR Commercial $330 $875 19% Real Estate 305 707 18% Consumer 267 364 6% Total $902 $1,946 15% * Shift to Commercial Lending
Slide 13: Strong Low Cost Deposit Growth
December 31, 2010 June 30, 2016 Strong Low Cost Deposit Growth * ($ in Millions) 2010 2Q16 CAGR NIB $108 $397 27% IB Trans. 509 1,214 17% CDs 369 471 5% Total $985 $2,082 15%
Slide 14: Stable Core Net Interest Margin
* GAAP Net Interest Margin and Core Net Interest Margin Stable Core Net Interest Margin Δbps LQ YoY YTD GAAP +3 bps -19 bps -21 bps Core +6 bps -9 bps -9 bps
Slide 15: Asset Quality Improvement
* NPLs/ Loans Asset Quality Improvement
Slide 16: Recently Completed and Pending Mergers
Recently Completed and Pending MergersAdds Talent, EPS Accretion & Market Share *
Slide 17: Estimated Pro Forma Branch Network
* This map illustrates Horizon’s estimated pro forma branch network. (1) LaPorte currently has seven full-service branches and one loan production office. Upon conversion, three of LaPorte’s branches located in Michigan City, IN, Chesterton, IN and La Porte, IN (Westside) will be closed due to their
Slide 18: Increases Scale and Reach
* ($ in millions)Category HorizonBancorp LaPorteBancorp CNBBancorp Pro Forma Total Assets $2,918 $525 $56 $3,499 Total Loans $1,945 $329 $11 $2,285 Total Deposits $2,082 $361 $44 $2,487 Branches 50 4(1) 2 56 Horizon Bancorp and LaPorte Bancorp financials as of June 30, 2016; CNB Bancorp financials a
Slide 19: Bolsters Indiana Presence, Growth Potential and Earnings Power
* Growth opportunity in the vibrant market of Warsaw, INEPS accretion of ~4% in 2017, 4 year TBV earnbackFully-phased in cost savings estimated at 45% Bolsters Indiana Presence, GrowthPotential and Earnings Power (1) CNB shareholders will receive a special cash dividend representing capital in exces
Slide 20: Investment Thesis – Building for the Future
- Investment Thesis –Building for the FutureTrust, Action, Results *
Slide 21: Financial Opportunities
Financial Opportunities * Revenue GrowthIn all directions and in all business linesCustomer satisfaction #1 focusTalent retention, development and recruitmentLower Overall Cost of FundsReduce debt and increase core depositsImproves net interest marginEfficiency ImprovementsMass and scaleLeverage tec
Slide 22: Growth Opportunities In All Directions
* Growth Opportunities In All Directions Current Opportunity Future OpportunityCurrent BranchesKosciuskoBranchesLaPorte BranchesCentral Branches This map illustrates Horizon’s estimated pro forma branch network including the Farmers and LaPorte mergers. Green circles represent Horizon branches, blue
Slide 23: Investment in People Produces Solid Results
* Mortgage Volume Assets Under Mgt. CAGR: 19% CAGR: 25% CAGR: 4% Investment in PeopleProduces Solid Results Commercial Loans
Slide 24: Opportunity to Lower Cost of Funds
* Commercial Loan Balances Opportunity to Lower Cost of Funds
Slide 25: Proven Track Record (Trust)
Consistent, Well Executed and Disciplined Business Strategy Horizon is a Growth Story10-year Asset CAGR of 9%Nine Acquisitions and Eight Market Expansions Since 2000Capacity to Take Additional Market ShareHistorical Financial Performance Illustrates Ability to Execute * Proven Track Record (Trust)
Slide 26: A Company on the Move (Action)
A Company on the Move (Action) * Assets ($ Mil.) $721 $3,499 Loans($ Mil.) $548 $2,285 Deposits($ Mil.) $489 $2,487 Branches (2) 7 56 OrganicExpans.(8) St. JosephS. BendElkhart Lake County Kalamazoo Indianapolis Carmel Ft.Wayne M&A(9) Anchor Mortgage Alliance American Trust Heartland 1st MortgageSum
Slide 27: Horizon Outperforms the Market for Total Shareholder Return
Horizon Outperforms the MarketFor Total Shareholder Return (Results) As of July 28, 2016SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. * Horizon Bancorp: 5-Year Total Return Comparison
Slide 28: Thank You for Your Investment in Horizon Bancorp
Thank Youfor Your Investment inHorizon Bancorp
Slide 29: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 30: Appendix
HORIZON — BAN BANK Appendix EX GEP TO NAL SvECR Val Coe
Slide 31: Non-GAAP Reconciliations
— BANK Non-GAAP Reconciliations ‘Twelve Months Ended “Three Months Ended Six Months Ended December 31 2015__214__2913_ ore ___o_ 200 2Q16 __1Q16 __ 2915, 2016_2015 Tnavaited Unaudited Unavdived — “Unadied) Unauied Non-GAAP Reconciliation of Net Income Net ineomess xportad $ MSH $ TRIO $ 198% $ 195 $
Slide 32: Non-GAAP Reconciliations
HORIZON Non-GAAP Reconciliations ‘Non-GAAP Reconciliation of Net Interest Margin (Dollar in Thousands) ‘Three Months Ended Six Months Ended June30 March31_— June 30 June 30 [Net Interest Margin As Reported 2016 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net inter