Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (May 2006)
32 slides from Horizon Bancorp's investor presentation, May 4, 2006
Slide 1: NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 2: The Company
The Company Craig M. Dwight President & Chief Executive Officer
Slide 3: 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 Sec
Slide 4: History
History • Founded in 1873 • Located in Northwest Indiana and Southwest Michigan • Total Assets: $1 billion - New Milestone • Insiders, Employees & Retirees Own Approximately 30%
Slide 5: Business Lines
Business Lines • Retail Banking • Commercial Banking • Mortgage Lending • Mortgage Warehousing • Trust & Investment Management • Goal is to Balance Revenue Streams
Slide 6: Locations
Locations Current Horizon Location Future Horizon Location Former Alliance Location
Slide 7: Alliance Acquisition
Alliance Acquisition
Slide 8: Alliance Acquisition History
Alliance Acquisition History • Closed June 10, 2005 • Converted Data Processing Systems July 18, 2005 • Sold Michigan City Branch Location – November 2005 – Leasing Drive-up Facility
Slide 9: Reasons to Acquire Alliance
Reasons to Acquire Alliance • Fills Gap in Markets Served • Cost Savings Greater Than 30% – Staffing – Occupancy – Operational • Reduces the Risk of a New Entrant into the Market • IRR > 18%
Slide 10: Alliance Acquisition Metrics
Source for Alliance Acquisition: McConnell, Budd & Romano, Inc. Investment Banker & Alliance’s Year-end 2004 Audited Financial Statement Source for Averages: SNL Merger & Acquisition Report 12-31-04 Alliance Acquisition Metrics
Slide 11: Current Challenges Facing Horizon
Current Challenges Facing Horizon • Slow Down in the Annual Growth Rate of Net Income – Flat Yield Curve – Efficiency Ratio • Loan Volume - 1st Quarter – Mortgage Warehouse Loan Volume Below Expectations – Unanticipated Commercial Loan Payoffs
Slide 12: Interest Spread and Yield Curve
5.500% 5.000% 4.500% 4.000% 3.500% 3.000% 2.500% 2.000% fff | Interest Spread 1.05% Lo ere sere o ence D 3 month 6 month 2 year 3yew S year ‘year 30yem HORIZON. __HORIZO
Slide 13: Non-Interest Expense to Avg. Assets
Non-Interest Expense to Avg. Assets
Slide 14: inoos
inoos $2,150 $1380 s17s0 S180 S130 S150 $750 set ate a @ Avg $1,498 e 8 g ie 2 g tat Quarter and Quarter ‘nd Quarter 4th Quarter 008 aos Ga00s 2006 HORIZON _. ie
Slide 15: Strengths to Build Upon
Strengths to Build Upon • Organic or Internal Growth Rates • Shift in Loan Mix • Consistent Gains in Deposit Market Share • Return on Average Equity • Dividend Increases • Company Driven by Values or Closely Held Beliefs • Total Shareholder Return
Slide 16: Total Assets CAGR
Total Assets CAGR 15.31% 1998 to 2005 CAGR 3.02% 1994 to 1998
Slide 17: Deposit Market Share
Source FDIC June 30, 2005 Deposit Market Share
Slide 18: Return on Average Equity
Source: Samco Capital Return on Average Equity
Slide 19: Dividend Increases by Year
Year % Increase 2005 7.69% 2004 8.33% 2003 12.49% 2002 6.67% HORIZON. __HORIZO
Slide 20: Closely Held Beliefs
Closely Held Beliefs • We Affirm the Customer as Our Highest Focus • We Accomplish Our Goals • We Understand the Value of Profit • We Value Measurement – Publish & Rank Results – Best Practices – Recognition – Six Sigma
Slide 21: Why Attractive Investment?
Why Attractive Investment? • Organic Growth Rates • Chicago Discovers Market Place • Excellent Asset Quality • A Company Driven by Closely Held Beliefs • Insider and Employee Ownership is Aligned with Shareholder Interests
Slide 22: Stock Price History - Five Years
Stock Price History - Five Years Source: NASDAQ QQQQ: Community Bank Index Bank: Nasdaq Bank Index COMP: Nasdaq Composite
Slide 23: Financial Presentation
Financial Presentation James H. Foglesong Chief Financial Officer
Slide 24: Total Assets
‘Millions $1,100 $1,000 $700 $500 $400 Total Assets CAGR 13.9% rH i] 2001 2002 2003 2004 2005 HORIZON ———
Slide 25: Loans by Type
$250 $200 $150 Millions $100 i 1999 2000 2001 2002 2003 2004 Year (@Warehousing B Commercial (Installment [Mortgage 2005 HORIZON __HORIZO!
Slide 26: Total Loans
Total Loans 2002 2005
Slide 27: Peer Data from UBPR
Peer Data from UBPR - December 31, 2005
Slide 28: Deposits
Millions $1,200 $1,000 $400 $200 Deposits 2001 2002 2003 2004 (Gi iaret Sern marek Seng Tnsacion GTine COS O Oe Borowings] 2005 HORIZON _HORIZO
Slide 29: Non-Interest Income
Thousands 12,000 11,000 10,000 7,000 Non-Interest Income 2001 2002 2003 2004 2005 HORIZON ———
Slide 30: Non-Interest Expense to Avg. Assets
Non-Interest Expense to Avg. Assets
Slide 31: Net Income
$8.0 $7.0 $6.0 Millions $5.0 $4.0 $3.0 Net Income 2001 2002 2003 2004 2005 HORIZON ———
Slide 32: NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC