Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Q4 2024 Earnings Presentation
25 slides from Horizon Bancorp's earnings presentation, Jan 23, 2025
Slide 1: Investor Presentation
Investor Presentation Horizon Bancorp, Inc. (NASDAQ: HBNC) Fourth Quarter Ended December 31, 2024 January 23, 2025 Beyond ordinary banking
Slide 2: Important Information
Important Information Forward-Looking Statements This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon cla
Slide 3: Executive Management Team
Executive Management Team Kathie A. DeRuiter Todd A. Etzler Lynn M. Kerber EVP & Senior EVP & Corporate Secretary EVP & Chief Commercial Operations Officer & General Counsel Banking Officer Thomas M. Prame Mark E. Secor John R. Stewart, CFA® President & Chief EVP & Chief EVP & Chief Executive Office
Slide 4: Fourth Quarter 2024
Fourth Quarter 2024 HIGHLIGHTS & DEVELOPMENTS ($000S EXCEPT PER SHARE DATA) 4Q24 3Q24 • Fifth consecutive quarter of FTE NIM* expansion to 2.97%, INCOME STATEMENT from a favorable mix shift in both average earning assets and interest-bearing deposits Net interest income $53,127 $46,910 • Quality loa
Slide 5: Balanced Loan Growth
Balanced Loan Growth 4Q24 HIGHLIGHTS & DEVELOPMENTS • Robust loan growth with quarter end Total gross 20% loans*, excluding Mortgage Warehouse, increased Consumer $123.5MM or 10% LQA Total Loans* Residential o Continuing to maintain highly diverse $4.9B residential, consumer, C&I and CRE MRQ end Com
Slide 6: Diversified Commercial Portfolio
Diversified Commercial Portfolio 4Q24 HIGHLIGHTS & DEVELOPMENTS 5% 9% • Commercial loan balances grew organically (22% LQA). 8% 31% Central Indiana o Quarter end up $164MM Geography Northern Indiana Western Michigan • Well balanced geographies, product mix and industry $3.1B Southwest Michigan o No
Slide 7: Prime Consumer & Residential Lending
Prime Consumer & Residential Lending 4Q24 HIGHLIGHTS & DEVELOPMENTS • Consumer portfolio and Mortgage portfolio relatively flat 5% Mortgage 17% • Indirect Auto declined $38MM from planned run-offs Mix Home Equity $1.8B 45% Indirect Auto • Home lending portfolios composed of higher quality MRQ end bo
Slide 8: Strong Asset Quality Metrics
Strong Asset Quality Metrics Substandard Loans (period end) Non-Performing Loans (period end) 0.56% 0.51% 0.46% $59.8 0.41% 0.40% $27.0 $51.2 $millions $49.5 $47.5 $24.4 $43.2 $20.3 $19.2 $19.3 $millions 1.24% 1.12% 1.03% 1.06% 0.89% 4Q23 1Q24 2Q24 3Q24 4Q24 Commercial Resi Real Estate Consumer 4Q23
Slide 9: Relationship Based Core Deposits
Relationship Based Core Deposits 4Q24 HIGHLIGHTS & DEVELOPMENTS Deposits • Consumer and Commercial Deposits $5,727 $5,665 $5,601 o Positive momentum in core relationships and $5,580 $5,630 $millions balances o Treasury management team investments 85.7% 86.5% 82.8% 83.9% making a positive impact 78.0
Slide 10: NIM Expansion
NIM Expansion 4Q24 HIGHLIGHTS & DEVELOPMENTS • Strong NIM expansion driven by accelerated repositioning of securities sale proceeds into commercial loans, strategic run-off of higher cost term deposits and modest benefit of non-recurring income • Continuation of improved balance sheet profitability
Slide 11: Investment Securities Detail
Investment Securities Detail 4Q24 HIGHLIGHTS & DEVELOPMENTS 4Q23 1Q24 2Q24 3Q24 4Q24 ROLL-OFF/CASH FLOW $28 $27 $26 $23 $23 • No new investments in the quarter SALES $383 – – – $332 • High credit quality treasuries, agencies, municipals DURATION (YEARS) 7.0 6.9 6.8 6.8 7.1 and mortgage-backed securi
Slide 12: Non-Interest Income
Non-Interest Income 4Q24 HIGHLIGHTS & DEVELOPMENTS • Non-interest income impacted by a $39.1MM loss Non-interest Income from securities sale $11.5 $9.9 $10.5 $1.1 $1.7 $0.7 • Realizing benefits from Treasury Management and $0.7 $1.1 $1.3 $2.0 Wealth investments $1.7 $1.4 $1.1 $1.4 $1.4 $1.3 $1.4 $1.
Slide 13: Non-Interest Expense
Non-Interest Expense 4Q24 HIGHLIGHTS & DEVELOPMENTS • Elevated non-interest expense in Q4, impacted by successful execution of strategic plans to Non-interest Expense $44.9 improved go-forward profitability: $39.3 $39.3 $19.4 $37.1 $37.5 o $1.8MM accelerated stock vesting $17.5 $17.4 expense to exit
Slide 14: Capital Position Provides Flexibility
Capital Position Provides Flexibility TCE/TA* Leverage Ratio $13.68 $13.46 $12.65 $12.80 8.91% 9.02% 9.02% 8.87% 7.20% 7.22% 7.58% 7.83% 1Q24 2Q24 3Q24 4Q24 1Q24** 2Q24 3Q24 4Q24*** TCE/TA Ratio TBVPS CET1 Ratio Total RBC Ratio 13.75% 13.41% 13.45% 13.84% 10.89% 10.63% 10.68% 10.96% 1Q24 2Q24 3Q24 4
Slide 15: Successful Execution of Strategic Actions
Successful Execution of Strategic Actions Simplifying Business Model, Strengthening Balance Sheet & Improving Profitability • Repositioned ~$330MM AFS Securities (Book Value) o Sales completed in early October Securities Sale Expected Financial Impact: o Net proceeds were leveraged to fund commercia
Slide 16: Full-Year 2025 Guidance Summary
Full-Year 2025 Guidance Summary • Period-end total loans HFI to grow mid-single-digits off stronger fourth quarter results • Growth primarily in higher-yielding commercial loans; Offset by continued planned runoff in Loans (HFI) indirect auto loans (~$100MM) • Loans HFS will decline from the sale of
Slide 17: On The Horizon
On The Horizon Positive Momentum Across the Franchise Highly Attractive Constant, High Tenured Deposit Lean In Operating Midwestern Markets Quality Loan Growth Base With Culture Significant Liquidity 70+ branches strategically Positive loan momentum Tenured, granular Proactively managing located in
Slide 18: Appendix
HORIZON‘ _HORIZON: BANK
Slide 19: Diverse Commercial Lending Portfolio
Diverse Commercial Lending Portfolio % of Total STRONG AND 12/31/2024 % of Commercial Loan TRADITIONAL COMMERCIAL LOANS BY INDUSTRY Balance Portfolio Portfolio Lessors - Residential Multi $ 315 10.2% 6.4% COMMERCIAL LENDING Health Care, Educational Social Assist. 257 8.4% 5.2% NOO- Warehouse/Industr
Slide 20: Well-Managed CRE Maturities
Well-Managed CRE Maturities 2025 Maturities Remaining 2026 Maturities Average Rate 5.95% Average Rate 4.99% Loans Outstanding % of Total Adjusted CRE* Loans Outstanding % of Total Adjusted CRE* 12% 9% $millions $millions 7% $273 6% $208 $161 $139 All rates <7% rates All rates <7% rates Data as of MR
Slide 21: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Certain information set forth in this presentation refers to financial measures determined by methods other than in accordance with GAAP. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe
Slide 22: Non-GAAP Reconciliation of Net FTE Interest Margin
HORIZON Non-GAAP Reconciliation — BANK Non-GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin (Dollars in Thousands, Unaudited) Three Months Ended December 31, September 30, June 30, March 31, | December 31, 2024 2024 2024 2024 2023 Interest income (GAAP) (A) $ 93350 $ 90,88
Slide 23: Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets
Non-GAAP Reconciliation Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets (Dollars in Thousands, Unaudited) Three Months Ended December 31, ‘September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Total stockholders’ equity (GAAP) (A) $ «763,582 $ «754822 $ (726665
Slide 24: Non-GAAP Reconciliation of Tangible Book Value Per Share
HORIZON Non-GAAP Reconciliation — BANK Non-GAAP Reconciliation of Tangible Book Value Per Share (Dollars in Thousands, Unaudited) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Total stockholders’ equity (GAAP) (A) s 763,582 $ 754822 $ 726665 $
Slide 25: Thank you
Thank you John R. Stewart, CFA® Executive Vice President & Chief Financial Officer 515 Franklin Street, Michigan City, IN 46360 219-814-5833 Investor.HorizonBank.com