Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (July 2014)
30 slides from Horizon Bancorp's investor presentation, Jul 29, 2014
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: Who We Are
HORIZON‘ —_—_ BAN BANK Who We Are EPTIONAL Seb Velo bee sce nN ole beak ADVICE ®3
Slide 4: Company Profile
* Headquartered in Michigan City, IN31 Locations Throughout Indiana and Michigan$2.1 Billion in Assets14 Years of Record EarningsMarket Cap. $192 MillionOwnership9% Insiders13% Employee Benefit Plans29% Institutional Company Profile * Market data as of July 23, 2014; financial data as of June 30, 20
Slide 5: Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Slide 6: Four Key Revenue Streams
Retail BankingBusiness BankingMortgage BankingWealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles * Four Key Revenue Streams
Slide 7: Horizon's Story
Horizon’s Story Steady GrowthSuperior ReturnsFinancial StrengthConsistent Performance *
Slide 8: Second Quarter 2014 Highlights
Second Quarter 2014 Highlights *
Slide 9: 2Q14 Highlights
2Q14 Highlights * Surpassed $2 Billion in AssetsTotal Loan Growth - QoQ 20%, YTD 24% Commercial Loan Growth - QoQ 23%, YTD 28%QoQ Increase in Core Net Interest Margin from 3.38% to 3.52% (1)Closed SCB Bancorp, Inc. Acquisition on April 3rd, 2014Increased Quarterly Dividend from 11 Cents to 13 Cents
Slide 10: Robust Organic Loan Growth in 2Q14
Robust Organic Loan Growth in 2Q14 * Loan Type(In Millions) 6/30/14 AcquiredLoans 4/3/14 3/31/14 Organic Change Annualized Organic Growth Commercial $648 ($70) $529 $49 38% Residential Mtg. $236 ($44) $190 $2 5% Consumer $297 ($10) $280 $7 10% Mtg. Warehouse $141 - $102 $39 154% Total Loans $1,321 (
Slide 11: Summit Community Bank Acquisition Adds Value
* Summit Community Bank Acquisition Adds Value Acquisition Metrics(1)(2) Acquisition Metrics(1)(2) Deal Value (“DV”) $18.9 mil. DV/ Tg. Book Value 120.5% DV/ LTM Earnings 11.1x Core Deposit Prem. 2.8% Closed on April 3, 2014Illustrates Focus on Larger Markets with Growth PotentialFour Experienced Le
Slide 12: Horizon's Growth Story
HORIZON‘ BANK Horizon’s Growth Story Ex € E Pot iC NACE Seb Velo bee sce nN ole beak ADVICE ®2
Slide 13: A Company on the Move
A Company on the Move OrganicExpans.(7) St. JosephSouth BendElkhart Lake County Kalamazoo IndianapolisCarmel M&A(6) Anchor Mortgage Alliance Bank American Trust Heartland 1st MortgageSummit * Assets ($mm) $721 $2,073 Loans($mm) $543 $1,329 Deposits($mm) $489 $1,499 Branches 7 31 8.1% CAGR 6.9% CAGR
Slide 14: Growth Opportunities in All Directions
Growth Opportunities in All Directions * Kalamazoo, Lansing & St. JosephPopulation: 368,000Deposits: $4 billion South Bend, Elkhart & GoshenPopulation: 467,000Deposits: $7 billion Indianapolis & Johnson CountyPopulation: 1.4 millionDeposits: $30 billion Lake & Porter CountiesPopulation: 658,000Depos
Slide 15: Record Earnings "Fourteen" Consecutive Years
Record Earnings “Fourteen” Consecutive Years 2000 – 2013 CAGR: 13.6% In Millions Net Income History *
Slide 16: Investing in Commercial Lenders Creates Growth
* Investing in Commercial LendersCreates Growth Commercial Loan Balances
Slide 17: Balanced Risk In Commercial Portfolio
* Balanced Risk In Commercial Portfolio Commercial Loan Composition as of June 30, 2014
Slide 18: Kalamazoo and Indianapolis Loan Balances
Kalamazoo and Indianapolis Loan Balances * Growth Markets Thriving $229 Total
Slide 19: Shift to Commercial
June 30, 2014 December 31, 2008 In Millions 2008 2Q14 CAGR Commercial $311 $648 14.3% Real Estate $291 $376 4.8% Consumer $280 $297 1.1% * Shift to Commercial
Slide 20: Strong Low Cost Deposit Growth 2008 – 2Q14
December 31, 2008 June 30, 2014 Strong Low Cost Deposit Growth 2008 – 2Q14 CAGR 2008 – 2Q14 CAGR Nonint. Bearing 23.7% MMDA & Savings 20.4% IB Demand 12.6% CDs (1.1%) *
Slide 21: Disciplined Credit Culture
* NPLs/ Loans Disciplined Credit Culture
Slide 22: Why Invest In Horizon
HORIZON‘ BANK Why Invest In Horizon EX G€EPTIONAL Seb Velo bee sce nN ole beak
Slide 23: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 Steady Growth in Net Book Value & EPS DividendsUninterrupted Dividends for more than 25 YearsDividend Increases Aligned with Earnings GrowthImproving LiquidityStock Splits in 2001, 2003, 2011 and 2012Common Stock Issued in Heartland and Summit AcquisitionsRussell
Slide 24: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance Top 200 Community Banks for Financial Performance Six Consecutive Years, 2008 - 2013US Banker & ABA MagazinesTop 10% of Community BanksAnnual Community Bankers Cup, 2012 & 2013Raymond JamesKBW Bank Honor Roll2011 & 2012 *
Slide 25: Highly Regarded In Our Communities
Highly Regarded In Our Communities * Community Relations Award Urban League of Northwest Indiana, Inc.Nine out of Ten Customers Would Refer a FriendIndependent SurveyBest Bank - Eleven out of Last Twelve YearsThe News Dispatch Readers PollBest Bank for Obtaining a Business LoanNorthwest Indiana Busi
Slide 26: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the MarketFor Total Shareholder Return As of July 23, 2014SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe.SNL U.S. Bank $1B-$5B: Includes all Major Exchange Banks in SNL's coverage universe with $1B to $5B in assets as of most recent financial data. *
Slide 27: Thank You for Your Investment in Horizon Bancorp
Thank Youfor Your Investment inHorizon Bancorp
Slide 28: A NASDAQ Traded Company - Symbol HBNC
* A NASDAQ Traded Company - Symbol HBNC
Slide 29: Appendix
HORIZON‘ —_—_ BAN BANK Appendix EX G€EPTIONAL Seb Velo bee sce nN ole beak
Slide 30: Non-GAAP Reconciliations
HORIZON Non-GAAP Reconciliations Non-GAAP Reconciliation of Net Interest Margin (Dollar Amounts in Millions, Unaudited) ‘Three Months Ended june 30, 2014 March 31, 2014 June 30, 2013 Net Interest Margin As Reported Net interest inaome $ 16.8 $ 13.3. $ 16.6 Average interest-earning assets 1,832.6 1,5