Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (September 2018)
39 slides from Horizon Bancorp's investor presentation, Sep 5, 2018
Slide 1: A NASDAQ Global Select Traded Company - Symbol HBNC
A NASDAQ Global Select Traded Company - Symbol HBNC September 5, 2018
Slide 2: Forward-Looking Statements
This presentation 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 claims the protection of the safe harbor for forward-
Slide 3: Craig M. Dwight, CEO and Mark E. Secor, CFO
* Craig M. DwightChief Executive OfficerMark E. SecorEVP & Chief Financial Officer
Slide 4: Horizon is a Growth Story
_HORIZON BANK Horizon isa Growth Story
Slide 5: Indiana and Michigan: The Right Side of Chicago
Indiana and Michigan… The Right Side of Chicago Illinois and Chicago-High Taxes & Cost of Living-Low Credit Rating-Unfriendly Business Environment
Slide 6: Indiana and Michigan Great States to Conduct Business
IndianaRanked 5th Best State for Business by Chief Executive Magazine in 2018 and 2017Ranked 2nd in Infrastructure, 4th in Business Friendliness, 5th in Cost of Doing Business, 10th in Cost of Living by CNBC’s Ranking of America’s Top States for Business 20182017 Budget Surplus and $1.78 Billion Res
Slide 7: Legacy Footprint 2007
Branches * Legacy Footprint 2007 Locations – 16Counties – 6 Indiana Ohio Illinois Michigan
Slide 8: Growth Footprint 2018
BranchesLoan Production OfficesNew Branch in 2018 8 Growth Footprint 2018 Locations – 65Counties – 27 Michigan Illinois Indiana Ohio BranchesLoan Production OfficesNew Branch in 2018 * Growth Footprint 2018 Locations – 65Counties – 27 Michigan Illinois Indiana Ohio
Slide 9: Growth Story Creates Shareholder Value
($’s in millions, except per share data)Category December2007 December2017 June2018 Assets $1,258 $3,964 $4,067 Loans $887 $2,818 $2,907 Deposits $893 $2,881 $3,016 Trust Assets Under Management $409 $2,483 $2,706 Market Capitalization $83 $710 $794 Stock Price $5.07 $18.53 $20.69 Average Daily Trad
Slide 10: Positioned Well for the Future
Positioned Well for the Future * Growth in Higher Yielding AssetsGood Core Deposits Growth
Slide 11: Focused on Consistent Revenue Streams
Retail BankingBusiness BankingMortgage BankingWealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles * Focused on Consistent Revenue Streams
Slide 12: High Quality, Well Diversified Loan Portfolio
($ in Millions) Dec.2012 Jun.2018 CAGR OrganicCAGR Commercial $460 $1,673 26% 13% Res. Real Estate 441 $744 10% (4)% Consumer 289 $508 11% 8% Total $1,190 $2,925 18% 7% * High Quality, Well Diversified Loan Portfolio 2012 2018 Footnote Index included in Appendix
Slide 13: Managing Commercial Real Estate Concentration Risk
Managing Commercial Real Estate Concentration Risk December 31, 2017 * Percent of total commercial loans at June 30, 2018.
Slide 14: Strong Core Deposit Mix
* Strong Core Deposit Mix 2012 ($ in Millions) Dec.2012 Jun.2018 CAGR OrganicCAGR Jun. 2018 YTD Cost Non-interest $209 $615 22% 11% 0.00% Interest 770 1,645 15% 2% 0.28% CDs 315 756 17% 1% 1.32% Total $1,294 $3,016 17% 4% 0.58% 2018 Footnote Index included in Appendix
Slide 15: Historical Earnings Demonstrates Ability to Execute
Historical EarningsDemonstrates Ability to Execute * Core Diluted EPS CAGR 8% * Robust Earnings Growth Footnote Index included in Appendix (2) (2) ($’s in millions)
Slide 16: Robust Earnings Growth
Core Diluted EPS CAGR 8% 16 Robust Earnings Growth Footnote Index included in Appendix (2) (2) ($’s in millions)
Slide 17: Year-to-Date 2018 Record EPS
17 Year-to-Date 2018 Record EPS Footnote Index included in Appendix EPS Growth 35% EPS Growth 11% ($’s in millions) (4) (4) * Year-to-Date 2018 Record EPS Footnote Index included in Appendix EPS Growth 35% EPS Growth 11% ($’s in millions) (4) (4)
Slide 18: Net Interest Margin Headwinds Offset by Efficiency Gains
* GAAP Net Interest Margin and Core Net Interest Margin (5) Net Interest Margin Headwinds Offset by Efficiency Gains Footnote Index included in Appendix
Slide 19: Operating Leverage Results in Efficiency Gains
* Operating LeverageResults in Efficiency Gains Footnote Index included in Appendix (6)
Slide 20: Lower Dependence on Mortgage Revenue
* Lower Dependence on Mortgage Revenue (7) Footnote Index included in Appendix
Slide 21: Building Shareholder Value after Acquisitions
* Building Shareholder Value after Acquisitions Footnote Index included in Appendix
Slide 22: A Company on the Move Through Consistent Strategy & Execution
A Company on the Move Through Consistent Strategy & Execution *
Slide 23: A Company on the Move
A Company on the Move * OrganicExpans.(11) St. Joseph,S. Bend,Elkhart,Merrillville Kalamazoo Indianapolis Carmel Ft. Wayne,Grand Rapids Columbus,Noblesville,Holland M&A(13) Anchor Mtg.,Alliance American Trust Heartland 1st Mtg.,Summit,Peoples Farmers,LaPorte,CNB Bargersville,Lafayette,Wolverine Foot
Slide 24: Growth Opportunities Abound
Growth MarketsFuture Markets 24 GrandRapids/Holland AnnArbor NWOhio FortWayne Lafayette Kalamazoo SouthBend Warsaw Indianapolis NWIndiana Growth Opportunities Abound Michigan Indiana Ohio Illinois Great LakesBay SE Michigan Growth MarketsFuture Markets * GrandRapids/Holland AnnArbor NWOhio FortWayne
Slide 25: Considerable Market Share Opportunities
Considerable Market Share Opportunities * Footnote Index included in Appendix
Slide 26: M&A Opportunities: Number of Banks in Indiana and Michigan
* Number of Banks Headquartered in Indiana and Michigan (14) M&A Opportunities On average, 5% decline per year Footnote Index included in Appendix 9 24 13 9 10 9 14 13 17 8 16
Slide 27: Why Invest in HBNC: Investment Thesis
Historical Performance Illustrates Ability to ExecuteConsistent, Well Executed and Disciplined Business StrategyA Growth Story10-year asset and net income CAGR of 11% and 15%, respectivelyThirteen acquisitions and eleven market expansions since 2002Capacity to take additional market shareEarnings im
Slide 28: Scale Drives Shareholder Value
* Scale Drives Shareholder Value Footnote Index included in Appendix
Slide 29: Horizon Outperforms the Market for Total Shareholder Return
Horizon Outperforms the MarketFor Total Shareholder Return * Horizon Bancorp: 5-Year Total Return Comparison Footnote Index included in Appendix
Slide 30: A NASDAQ Global Select Traded Company - Symbol HBNC
A NASDAQ Global Select Traded Company - Symbol HBNC
Slide 31: Appendix
HORIZON — BAN BANK Appendix EX GEP TO NAL SvECR Val Coe
Slide 32: Footnote Index
* Footnote Index Slide 9(1) Based on the daily trading volume for the years ended December 31, 2007 and 2017 and the six months ended June 30, 2018, respectively.Financial data in millions, except for stock price, as of December 31, 2007 and 2017 and June 30, 2018, respectively. Slide 12Financial da
Slide 33: Footnote Index
* Footnote Index Slide 20(7) Mortgage Revenue is defined as interest and fee income from mortgage warehouse loans plus gain on sale of mortgage loans.Slide 21See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.Slide 23(8) Columbus, Ohio location clos
Slide 34: Footnote Index and Use of Non-GAAP Financial Measures
* Footnote Index Slide 29As of August 28, 2018. SNL U.S. Bank includes all Major Exchange Banks in SNL’s coverage universe.Slides 35-39 Use of Non-GAAP Financial Measures: Certain information set forth in the presentation materials refers to financial measures determined by methods other than in acc
Slide 35: Non-GAAP Reconciliations
HORIZON‘ _HORIZO! Non-GAAP Reconciliations Nom GAAP Reconciliation of Net Income and Diluted Earnings per Share (Dollars in Thousands Except per Share Data) ‘Twelve Months Ended December 31 2017 2m6 201s 2014 2 2n2 2m 200 2009 2008 2007 Non-GAAP Reconciliation af Net Income Netineomeas eported $ BIT
Slide 36: Non-GAAP Reconciliations
HORIZON Non-GAAP Reconciliations ‘Non-GAAP Reconciliation of Net Income and Diluted Earnings per Share ollars in Thousands Except per Share Data, Unaudited) Six Months Ended June 30 2018 2017 2016 Non-GAAP Reconciliation of Net Income Net income as reported S$ 26919 $ 17296 $11,707 Merger expenses -
Slide 37: Non-GAAP Reconciliations
HORIZON‘ Non-GAAP Reconciliations BANK Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands, Unaudited) ‘Three Months Ended June 30 March 31 December 31 September 30 June 30 ‘Net Interest Margin As Reported 2018 2018 2017 2017 2017 Net interest inome s 33,550 $ 33,411 $ 31,455 $ 27,8
Slide 38: Non-GAAP Reconciliations
HORIZON Non-GAAP Reconciliations Non-GAAP Reconciliation of Efficiency Ratio (Dollars in thousands, Unaudited) ‘Twelve Months Ended Six Months Ended December 31 June 30 2017 2016 2015 2014 2013 2018 2017 Net interest ineome $ 112,100 $ 85,992 $ 74,734 $ 62,983 $ 61,383 S$ 66,961 $ 52,766 Non-interes
Slide 39: Non-GAAP Reconciliations
HORIZON Non-GAAP Reconciliations Non-GAAP Reconciliation of Tangible Stockholders' Equity and Tangible Book Value per Share (Dollars in Thousands Except per Share Data, Unaudited) December 31 June 30 2017 2016 2015 2014 2013, 2018 2017 ‘Total stockholders’ equity $ 457,078 $ 340,855 $ 266,832 $ 194,
Horizon Bancorp — Investor Presentation (September 2018) on 6ix