Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (July 2010)
31 slides from Horizon Bancorp's investor presentation, Jul 27, 2010
Slide 1: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward- looking statements regarding financial performance, business prospects, growth and operating strategies. For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Se
Slide 3: Horizon is a Retail Bank - Corporate Profile
*Based on price at the close of business on June 30, 2010 at $21.33 per share **Total assets and deposits as of June 30, 2010 ***Horizon is closing two branches by September 30, 2010 Horizon is a Retail Bank Corporate Profile • Shares Outstanding 3.3 Million • Market Cap* $70.3 Million • Total Asset
Slide 4: Locations
Locations Michigan City South Bend Elkhart Whiting Kalamazoo St. Joe / Benton Harbor Crown Point Valparaiso
Slide 5: Diversified Employment Base
Diversified Employment Base
Slide 6: Ranked #1 Retirement Community for Chicago Area
Ranked #1 Retirement Community for Chicago Area
Slide 7: Household Growth Opportunities
Total household information obtained from Demographics Now Household Growth Opportunities
Slide 8: Business Growth Opportunities
Counties: Elkhart County, La Porte County, Lake County, Porter County, St. Joseph County, Berrien County, Kalamazoo County. Information obtained from Demographics Now Business Growth Opportunities
Slide 9: Growing Markets & Increasing Market Share
County 2000 Total Market Deposits 2009 Total Market Deposits Market Growth Since 2000 2000 HBNC Deposits 2009 HBNC Deposits HBNC Growth Since 2000 La Porte Co., IN $1,105 $1,349 22% $336 $492 47% Porter Co., IN $1,362 $2,155 58% $39 $164 319% Berrien Co., MI $1,874 $1,889 1% $65 $148 130% Lake Co.,
Slide 10: American Trust & Savings Acquisition
American Trust & Savings Acquisition Accretive to Earnings Per Share • Purchase & Assumption – Assets ≈ $108 million – Deposits ≈ $110 million • Financial – Annual earnings after tax run rate estimated at $0.27 and $0.33 diluted EPS – $664,000 in transaction costs have been expensed in 2010 • Good A
Slide 11: Horizon More Profitable Than State & National Peers
Source: Uniform Bank Performance Reports. Indiana and Michigan are state averages for all insured commercial banks. National is all insured commercial banks with assets between $1 billion and $3 billion. 2008 2009 Horizon More Profitable Than State & National Peers As Measured By Return On Average A
Slide 12: Horizon is a Top Rated Bank
Source of Ratings: www.bauerfinancial.com - Telephone: 800.388.6686 Star Ratings as of December 31, 2009 and through April 16, 2010 Horizon is a Top Rated Bank • Indiana – Horizon – Centier – 1 st Source – La Porte Savings – First Midwest – Peoples Bank – Citizens Financial – Standard Bank • Michiga
Slide 13: Record Earnings - Ten Consecutive Years
Record Earnings - Ten Consecutive Years CAGR 10.29 % 2000 to 2009 YTD 6 months
Slide 14: Strong Growth in Pre-Tax Pre-Provision Earnings
Strong Growth in Pre-Tax Pre-Provision Earnings CAGR 14.04 % YTD 6 months 2000 to 2009
Slide 15: Improving Net Interest Margin
Improving Net Interest Margin YTD 6 months
Slide 16: Horizon Exceeds Peer Average for Efficiency
Peer Data Source: KBW Report dated June 2010 covering Indiana Publicly Traded Banks; peer data represents a peer average and is as of June 2010 for all periods reviewed. Horizon Exceeds Peer Average for Efficiency YTD 6 months
Slide 17: Steady Asset Growth
Steady Asset Growth CAGR 10.1% As of June 30th 2000 to 2009
Slide 18: Increasing Core Deposits
CAGR 9.23% 2000 to 2009 As of June 30th Increasing Core Deposits
Slide 19: Loan Quality
Loan Quality
Slide 20: Sound Credit Culture
Sound Credit Culture • Team of Seasoned Underwriters – Average Tenure > 20 years • Primarily an In-Market and Full Recourse Lender • Predominately a Secured Lender • Retail & Small Business Focus – Average Commercial Loan Size Approximately $250,000 • We Manage Lending Limits – House Limit $10 milli
Slide 21: Low Percentage of Development Loans
“Low Percentage” of Development Loans Commercial Loans As a Percent of Total Loans at June 30, 2010 Dollars in Millions 14% 12% 6% 0.3% 1% 1% 0.8%
Slide 22: Diversity in Non-Performing & Real Estate Owned
Diversity in Non-Performing & Real Estate Owned Non-Performing and REO By Classification at June 30, 2010 Dollars in Millions Non-Performing Loans - $17.8 Other Real Estate Owned - $2.9
Slide 23: Consumer Loans Lead in Dollars Charged-off
Consumer Loans Lead in Dollars Charged-off By Type Of Loan
Slide 24: Horizon Builds Loan Loss Reserve
Horizon Builds Loan Loss Reserve Thousands -@ Allowance for Loan Losses to Total Loans 1.14% 2006 2007 Net Charge-Offs Liat 177% 1.29% $16,543 $16,015, $11,410 2008 2009 2010 YTD i Allowance
Slide 25: Horizon Outperforms Peer Groups
Horizon Outperforms Peer Groups Non-Performing Loans Plus OREO to Gross Loans Plus OREO Source: FDIC Uniform Bank Performance Reports. Peer is a custom group of 18 publicly traded banks headquartered in the state of Indiana. National peer group consists of insured commercial banks having assets betw
Slide 26: Invest in Horizon
Invest in Horizon
Slide 27: Highly Regarded In Our Communities
Source: www.bauerfinancial.com - Telephone: 800.388.6686 Highly Regarded In Our Communities • Nine out of Ten Customers - Would Refer a Friend • Best Bank - The News Dispatch Readers Poll - Nine out of Last Ten Years • Best Trust Company - NW Indiana Business Quarterly • Best Place to Work - NW Indi
Slide 28: Stable Performance & Growth
Stable Performance & Growth • Earnings Growth for Ten Consecutive Years • Diversified Revenue Streams • Efficient Operations • Lake Michigan Corridor Primed for Growth • Super Regional Banks Cutting Back - Market Share Opportunities • Opportunities Increasing for Healthy Banks
Slide 29: Horizon is an Attractive Value
Horizon Bancorp* Avg. Indiana Banks** Dividend Yield 3.2% 2.0% Price to Book 75.9% 80.5% Price to Tangible Book 84.0% 87.5% Price to Earnings (LTM) 9.6x 24.1x *Horizon Bancorp data as of June 30, 2010 **Peer Data Source: KBW Report as of June 2010 Covering Indiana Publicly Traded Horizon is an Attra
Slide 30: Horizon Outperforms NASDAQ Bank Index
Horizon Outperforms NASDAQ Bank Index
Slide 31: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC