Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (July 2012)
36 slides from Horizon Bancorp's investor presentation, Jul 30, 2012
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 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
Slide 3: Corporate Profile
Corporate Profile • Shares Outstanding 5.0 Million • Market Cap (1) $ 130.4 Million • Total Assets (2) $ 1.6 Billion • Total Deposits (2) $ 1.0 Billion • Locations 24 • Ownership (2) – Insiders 10% – Employee Benefit Plans 16% – Institutional & Mutual Funds 23% (1) Based on price at the close of bus
Slide 4: Michigan
Michigan as Font ways Illinois \ Indiana Ohio Latnyone, e sauncie, 2 ote j- indianapolis bos “Terre Haute > . Franson 2 oe Beomegtert
Slide 5: Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Slide 6: Global companies find world class locations
Global companies find world class locations Diversified Employment Base
Slide 7: #1 Retirement Community for Chicago Area
HORIZON‘ BANK #1 Retirement Community for Chicago Area
Slide 8: Horizon's Story
H orizon’s Story Financial Strength Consistent Performance Superior Returns Stable Growth
Slide 9: Record Earnings - Twelve Consecutive Years
HORIZON‘ Record Earnings BANK “Twelve” Consecutive Years Dollars in Millions $12.8 $9.1 $8.9 $8.1 $15 $7.11 65 99 $5.5 $44 $3.8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD $9.5
Slide 10: Return On Average Assets
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. As Measured By Return On Average Assets
Slide 11: Core Funding CAGR 7.19%, Loans CAGR 8.04%
Core Funding CAGR 7.19% Loans CAGR 8.04%
Slide 12: Balanced & Complementary Business Model
Balanced & Complementary Business Model #1 - Business Banking #2 - Retail Banking #3 - Wealth Management #4 - Retail Mortgage Banking #5 - Mortgage Warehousing Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles
Slide 13: Horizon's Sound Credit Culture
Horizon’s Sound Credit Culture
Slide 14: 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 & Business Focus – Average Commercial Loan Size Approximately $225,000 – Sweet Spot - Retail and Business Focus • We Manage Len
Slide 15: Delinquency Returns To Pre-Recession Levels
HORIZON‘ Delinquency Returns To BANK Pre-Recession Levels $15,000 $10,000 | | ds ‘Thousan $5,000 AT HS SM MH HH HGH PD G DS WG GH HV HH My i s* S ok Moe
Slide 16: Provision Expense Declining As Non-Performing Loans Stabilize
7 Provision Expense Declinin HORIZON: . 8 BANK As Non-Performing Loans Stabilize -* Non Performing Assets to Total Loans 2.37% 2.02% 2.07% $11,554 $8,99: 0.32% $8,505) Thousands $5,949] $6,000 $5,463. $5,282 1, $2,000 $1276 6g 2007 2008 2009 2010 2011 2012 2nd Qtr @ Net Charge-Offs ™ Provision Expen
Slide 17: Non-Performing Loans Plus OREO to Gross Loans Plus OREO
Source: FDIC Uniform Bank Performance Reports as of 12/31/11. Peer is a custom group of 16 publicly traded banks headquartered in the state of Indiana. National peer group consists of insured commercial banks having assets between 1 billion and 3 billion. 2 nd Qtr. Non-Performing Loans Plus OREO to
Slide 18: Horizon Bank
HORIZON —BANI BANK IBLE ADV
Slide 19: Mortgage
1999 2004 2005 2012 2010 2006 2002 2003 2008 Mortgage Warehousing Established Entered St. Joseph Michigan Market Entered South Bend and Elkhart Market Acquired Alliance Bank Entered Lake County Market Acquired American Trust Bank Entered Kalamazoo Michigan Market Entered Indianapolis Market Acquired
Slide 20: Continuous Expectation to Improve
Continuous Expectation to Improve • Minimum Expectation is for Each Department to Beat Last Year’s Performance – Financial Results – Internal Processes – Productivity • Utilize Third Parties – To Test Critical Thinking and Strategies – To Seek New Ideas – Asset Liability/Enterprise Risk Management/E
Slide 21: Proven Growth Strategy
Proven Growth Strategy • People First – 24/7 Recruitment Effort – Experienced Community Bankers – Retention • De Novo Branching – Breakeven Within First 18 Months – Traditional Banking at its Best • Acquisitions – Branch – Whole Bank – FDIC
Slide 22: Considerable Growth Opportunities
_HORIZON' Considerable Growth O BANK pportunities Indian: i so ai
Slide 23: Horizon Bank
HORIZON —BANI BANK IBLE ADV
Slide 24: Heartland's Corporate Profile
Heartland’s Corporate Profile as of March 31, 2012 • Total Shares Outstanding 1,442,727 • Total Assets $238 Million • Total Loans $135 Million • Total Deposits $211 Million • Branches 6* *Horizon will close one branch on August 31st
Slide 25: Heartland's Locations
Heartland’s Locations
Slide 26: Transaction Summary
Transaction Summary • Business Combination • Form of Consideration - Stock for Stock • Fixed Exchange Ratio at 0.54:1 • Heartland’s Shareholders Will Own Approximately 16% of Horizon Bancorp • Name Retained - “Heartland Community Bank, a Horizon Bank NA Company”
Slide 27: Transaction Summary Continued
Transaction Summary Continued • CEO & EVP Retained • Heartland Retained - One Bank Board Seat • Community Advisory Board Established • Transaction Closed on July 17, 2012
Slide 28: Acquisition Improves Shareholder Value
Acquisition Improves Shareholder Value • Strategic Considerations – Expands Horizon’s Presence into Central Indiana a Growth Market – Lowers Geographic Concentration Risk – Opens the Door for Future Opportunities – Demonstrates Horizon’s Interest as a Statewide Bank • Financial Considerations – Hear
Slide 29: Indiana Business Research Center
Indiana Business Research Center
Slide 30: Horizon Bank
HORIZON —BANI BANK IBLE ADV
Slide 31: Why Invest in Horizon Bancorp?
Why Invest in Horizon Bancorp? • A Company on the Move • Attractive Current Valuation • Dividends and Reinvesting for Growth • Consolidator in Banking Industry • Strong Capital Position • Positioned to Meet Regulatory Requirements • Successful Acquisition and Organic Growth Track Record • Robust Cap
Slide 32: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 • Dividends – Over 25 Years of Uninterrupted Dividend Payments to Horizon’s Common Shareholders – Recent Dividend Increases (2011 & 2012) • Focuses on Improving Liquidity – 3:2 Stock Split in 2011 – Heartland Acquisition Increases Shares Outstanding • Focuses on G
Slide 33: Highly Regarded In Our Communities
Highly Regarded In Our Communities • Nine out of Ten Customers - Would Refer a Friend • Best Bank - The News Dispatch Readers Poll - Eleven out of Last Twelve Years • Best Wealth Management Company - NW Indiana Business Quarterly • Best Place to Work - NW Indiana Business Quarterly • Family Friendly
Slide 34: Highly Regarded for Financial Performance
Highly Regarded for Financial Performance • Ranked in the Top 200 Community Banks for Financial Performance - US Banker & ABA Magazines for the Years -2008, 2009, 2010 & 2011 • Horizon Named to KBW Bank Honor Roll – Only 45 Banks Selected Throughout the United States – No Annual Loss in the Past Dec
Slide 35: Horizon Outperforms Market - Years
Horizon Outperforms Market - 3 Years
Slide 36: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC